MONTREAL, July 18, 2006 (PRIMEZONE) -- East Delta Resources Corp. (OTCBB:EDLT) (Frankfurt:EJK) reported today on management's recent visit to the Huaqiao Gold Mine in China. David Bikerman, Advisor to the Board of EDLT, conducted the visit on behalf of the Company with the main focus of the trip to assess the progress and development of the mine. EDLT had recently signed an agreement to acquire 77% of this operating mine.
Limited production at the mine continues on the upper levels of the underground mine, with ore extraction from the M3 and M4 veins, and recovery of coarse free gold by shaker table methods. By agreement, the proceeds of this production are currently used to offset worker salaries and associated holding costs, with any profits or losses absorbed by the operator. This arrangement allows the mine to retain all workers and maintain the project in operational readiness for larger scale production, which East Delta will manage and take financial control.
The lowest developed level of the mine, containing the M6 vein mineralization, was pumped dry of water in June. Geologic mapping of the level was initiated in advance of mining, which is expected to commence earlier than anticipated. The M6 mineralization differs from the upper levels of the mine in that the M6 ore is more of a network system of veins containing finer-grained free gold that is less amenable to shaker-table recovery than the thicker, more continuous veins of the upper level of the mine. Samples of the M6 vein were collected during the visit for metallurgical testing. Duplicate samples were taken, with samples to be tested in both Chinese laboratories and the North American labs.
The existing 150 tonne-per-day mill on site, consisting of a 2-stage re-circulating jaw crushing circuit, a ball mill, classifier, and flotation cells has not been operated since 2004 and is in the process of being rehabilitated and put to use in the upcoming months. The purpose of the metallurgical tests is to compare the results of the Chinese and North American laboratories, as well as to determine the suitability of the existing mill for production. The test work will determine what, if any, additional equipment needs to be installed.
The Company has also applied for exploration permits for the one-square-kilometer area directly northeast of the existing mine, a zone of extremely great potential for continued mineralization.
Representatives of the Company also met with the Department of Land Resources to initiate the acquisition of land for tailing pond expansion in a desirable location between the mine and the river. No impediments to this acquisition are foreseen.
Drilling to define the limits of the M6 vein will commence this fall. This drilling campaign will also include exploration of deeper veins to determine their suitability for mining.
The Company
East Delta Resources Corp. is a publicly traded Delaware corporation, headquartered in Montreal, Quebec whose business objective is to profit from the recent strong worldwide revival of interest in precious metals. EDLT's primary activity is in mine development and production of gold. EDLT also participates in other mineral exploration and mining, specifically, silver, nickel, zinc and lead. The geographic focus of the Company currently is mostly China.
With about (USD) $1.5 million available to it for mining and exploration, a majority interest in several highly-prospective properties, experienced personnel, and an extensive network of contacts in China, the Company believes it has made a solid start on implementing its business plans and objectives.
Safe Harbor
Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.