MONTREAL, May 20, 2005 (PRIMEZONE) -- East Delta Resources Corp. (OTCBB:EDLT) announced today that it has reached an agreement with the Chinese mining entity, Qinghai Jiahu Metal Development Co. Ltd. ("QJMD") to form a Joint Venture involving East Delta's subsidiary Sino-Canadian Metals Inc. (Sino-Canadian). Under the terms of the Agreement, the newly formed JV will acquire all the exploration and production permits owned by QJMD related to the Yuanshishan Nickel-Iron-Cobalt deposit located in Ping'an County, Qinghai Province, northwest China. The Agreement gives Sino-Canadian the exclusive right to earn at least 75% of this project, subject to investing USD $300,000 in the new JV and assuming the responsibility of all eventual funding necessary to bring the property to the mining and production stages.
The Yuanshishan Ni-Fe-Co deposit is located south of Ping'an County, 62 km east of Xining city, the provincial capital.
Over the past two decades, extensive exploration and fieldwork has been carried out at this site by the Bureau of Geology and Mineral Resources of Qinghai province. The results from the Bureau's exploration and fieldwork confirmed that the mineralization at Yuanshishan is of a Nickel dominated polymetallic nature, and that the Ni, Fe and Co grades are of economic importance. An open pit design was deemed suitable for the development of this deposit. QJMD reported that both it and the Chinese government have spent over USD $3,000,000 drilling and exploring this property to date.
In addition, the local infrastructure in this region to support mining activities is good. Roads connect the property to the nearby townships and counties, and a railway passes through Ping'an County. Electricity, manpower and water supplies are readily accessible.
Mr. Victor Sun, President and CEO of East Delta noted, "This joint venture Agreement is an enormous boost for East Delta. It firmly and quickly establishes us in the base metal sector in China, in addition to our successful and ongoing activities in gold."
This new Agreement advances East Delta's strategy of involvement primarily in advanced-stage projects where substantial exploration has already been conducted, or with up and running and established mining projects.
The Company will undertake intensive due diligence on this Ni-Fe-Co project and hopes to establish the mineral resources of the Yuanshishan Ni-Fe-Co deposit.
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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.