MONTREAL, Jan. 25, 2005 (PRIMEZONE) -- East Delta Resources Corp. (OTCBB:EDLT) announced today that it has signed a letter of intent to enter into a Joint Venture with Xining Zhen Hai Enterprises Ltd., a Chinese mining company operating in the Province of Qinghai, China.
A Joint Venture Company will be formed to acquire all the exploration and mining permits and property rights related to Zhen Hai's Mu Yang Gou Gold Mine project in Tong De County, Qinghai, China. Subject to certain terms and conditions, East Delta will own 80% of the JV Company.
The Mu Yang Gou Gold Mine is located 360 km from the capital city of Xining. The property covers an area of approximately 17 square kilometers, wherein about 5 square kilometers have been extensively explored. Results indicate a gold resource of about 175,000 ounces in the sub-property and geological data for the entire 17 square kilometers further indicates in excess of 700,000 ounces of gold. Road accessibility to the site and infrastructure resources (water and electricity) are deemed very good.
Mr. Victor Sun, President and CEO of East Delta, stated, "We are rapidly growing our potential gold resources and reserves in China and the closing of this deal will give us our fourth gold property. Additionally, this JV will add a new dimension to the Company's acquisition activities by giving us our first presence outside of Guizhou province, where our first three gold projects are located. This enhancement of our corporate image better reflects our activities and geographic focus."
As exploration on the Mu Yang Gou property has reached extraction stage and with East Delta's financing and management, the JV-company is expected to commence mining operations fairly quickly. Estimated extraction costs have been put at $150 to $175 per ounce.
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.