| ||November 14, 2007|
MBMI Announces Nickel Sales Agreements-Alpha Project
| ||Vancouver, B.C., November 14, 2007. MBMI RESOURCES INC. (MBR: TSX-V) ("MBMI") (the "Company") wishes to report that its Philippine subsidiary has negotiated several nickel sales agreements for multiple nickel bearing materials ranging from 1.5 % nickel to greater than 2.3 % nickel as pertaining to the Alpha, Philippines nickel project located in Narra, Palawan. |
One agreement is with Sinosteel Raw Materials Company (a subsidiary of one of the largest steel companies in China) for 35,000 to 40,000 Dry Metric Tonnes of nickel material grading a minimum of 1.8% Ni and 17% Fe. The cargo is being prepared currently for shipment and the buyer is presently securing the carrying vessel.
A second agreement is with BHP's QNI group for consumption at their plant in Queensland, Australia for 35,000 to 40,000 Dry Metric Tonnes of nickel material grading a minimum of 1.6 % Ni and greater than 20 % Fe. The Company anticipates this cargo will be loaded immediately following the first shipment.
A third agreement is with Nippon Yakin Kogyo Co. Ltd. through Mitsui & Co., Ltd of Japan for 6,000 to 8,000 Dry Metric Tonnes of nickel material containing greater than 2.3 % Ni and less than 12.0 % Fe. Representatives of Nippon Yakin and Mitsui have visited the Alpha property and Nippon Yakin is currently evaluating the metallurgical characteristics of samples of materials being prepared for shipment in the stockpile area.
A fourth agreement is with Hubei Jin Hui of China for 35,000 to 40,000 Dry Metric Tonnes of nickel materials containing greater than 1.7 % Ni and greater than 17.0 % Fe.
The second and third agreements are being considered trial contracts for the first shipment to confirm metallurgical performance of the material; and, both contracts are intended to convert into long-term sales agreements subject to approval of materials, satisfactory client performance, and issuance of permits allowing full scale mine development. The Sinosteel and Hubei agreements are considered to be the first shipments within a long-term agreement with payment to be effected upon completion of loading of the carrying vessels, while future agreements with other clients may vary from this practice. Sales agreements are being negotiated with additional potential consumers who have completed sampling, and testing of stockpiled material, and wish to purchase nickel material as soon as shipment quantities are available.
The moisture content of these shipments must conform to international-shipping regulations that limit the flow-moisture of cargos to a maximum moisture content for various materials. Nickel material that has been transported to the stockpiling location is being naturally air dried through a process of screening, manual size reduction, and segregation. At each step in this process, the material is sampled, assayed, and segregated into multiple stockpiles of varying qualities.
The Alpha property is subject to three small scale mine operating (SSMO) permits issued by the government of the Philippines and to date in excess of 60,000 wet metric tonnes of mineralized material has been excavated and transported to the stock yard where it is being prepared for shipment. This material has been excavated from an area where detailed grade control drilling has been carried out (see news release dated November 6, 2007). At this time, the Company's subsidiaries have the right to carry out small scale mining operations (SSMO) in accordance with the government regulations, but not the right to commence full scale commercial production. The SSMO's allow the shipment of up to 50,000 dry metric tonnes of material per year for a two year period from each 20 hectare permitted area. It should be noted that the Company has not yet established NI 43-101 compliant mineral resources or mineral reserves that would support a commercial mining operation and there is no guarantee that the sales agreements referred to above will be economic.
Mr John F Cook, (P.Eng) is the designated Qualified Person (QP) as defined in National Instrument 43-101, and has reviewed and approved the disclosure of the foregoing data.
ON BEHALF OF THE BOARD OF DIRECTORS
"Michael T. Mason"
President and Director
For further information:
David G. Tafel -- VP Corporate Development, Director
Fax: (604) 683-8544
Toll free: 1-877-399-1991
The TSX Venture Exchange has not reviewed and does not take responsibility for the accuracy of this release.
This news release may contain forward-looking information including but not limited to comments regarding the timing and content of upcoming financings, work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking information includes disclosure regarding possible future events, or conditions or results of operations that is based on assumptions about future economic conditions and courses of action, and therefore, involves inherent risks and uncertainties. Although management has a reasonable basis for the conclusions drawn, actual results may differ materially from those currently anticipated in such statements.
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