CALGARY, Alberta, April 3, 2003 (PRIMEZONE) -- The Cogburn Magnesium Project Feasibility Study from Hatch Ltd. is now under review by Company management and the Cogburn Advisory Group. Hatch Ltd. is recognized as one of the world's leading engineering firms offering EPCM services to the light metals industry world-wide.
The Feasibility Study commenced in February 2002 as a result of a positive Scoping Study from Hatch in October 2001. The Scoping Study recognized the potential for a successful magnesium operation at Cogburn because of: (1) a large, high-grade and very pure source of magnesium bearing silicate rock, (2) proximity to extensive infrastructure, (3) low power rates in British Columbia, (4) near deep-sea ports, (5) near the North American and Asian automobile manufacturing industry markets, and (6) availability of proven process technology.
Magnesium metal production, as proposed at the Cogburn, will require a 250MW continuous power supply, representing a significant part of operating costs. Fortunately, British Columbia's electric power is priced in the lowest decile in North America because of the large developed hydroelectric generating base. Government policy states that cost rather than market based pricing for electric power will maintain the lowest possible rates into the future.
According to Von Kruse Strauss Consulting and Management GmbH, "The engine for future growth in magnesium is the automotive industry. Magnesium metal is declared the metal of the future by many of the world's major automotive companies. Leading automotive executives predict that in the year 2020 there could be an average of 100 kg of magnesium in every vehicle compared to an average 2 to 3 kg per vehicle today. In particular, magnesium die-casting alloys required for these applications are predicted to show double-digit growth in the years ahead." Magnesium is the lightest structural metal known to mankind, it is one-third lighter than aluminum and two-thirds lighter than steel.
A key milestone in the Project was achieved on April 16, 2002 when the Company announced the signing of a technology transfer agreement with the State Research and Design Titanium Institute of Zaprozhye, Ukraine (STI) and the joint stock company VAMI of St. Petersburg, Russia. The agreement relates to commercial technology for metallurgical production of magnesium chloride salt from Cogburn ores followed by electrolytic reduction to high purity magnesium metal. The STI/VAMI technology was chosen by Hatch because of its established success at several large magnesium reduction plants.
The Company is now seeking a major company to participate in the advancement of the +US$1 billion Cogburn Project.
The Canadian Venture Exchange has neither approved nor disapproved of the information contained herein.
FOR FURTHER INFORMATION CONTACT:
Mr. Jasi Nikhanj, President & CEO at: Tel: (403) 234-7501, Fax: (403) 234-7504, E-mail: gen-info@leadermining.com
Mr. John Chapman, Acting Project Manager -- Cogburn Magnesium Project at: (604) 536-8356, Fax: (604) 536-8351, E-mail: jacms1@sprynet.com