| ||October 05, 2007|
MBMI Clarifies Technical Disclosure
| ||Vancouver, B.C., October 5, 2007. MBMI RESOURCES INC. (MBR: TSX-V) ("MBMI") (the "Company") reports that, as a result of a review by the British Columbia Securities Commission, the Company is issuing the following news release to clarify its previous disclosure.|
The Company disclosed in a news release of June 28, 2004 historical estimates for its Bethlehem and two Rio Tuba properties in Palawan, Philippines. The Company confirms that there are no current or historical resource estimates on the Bethlehem and Rio Tuba properties and the public should not rely on this previous disclosure. A Technical Report which was subsequently filed on October 29, 2004 indicated only exploration targets of 9 to 10 million tonnes with a potential grade of greater than 2% nickel. The potential tonnage and grade of these estimates is conceptual in nature and is based on the interpretation of historical exploration data. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
The Company also disclosed in a news release of May 2, 2005 a historical resource estimate of 300 million tonnes grading in excess of 1.5% nickel on the Samar projects. This historical estimate has not been verified by an independent "qualified person" and should not be relied upon.
A technical report filed on September 21, 2005 respecting the Samar project states that the original sampling data are not readily available, the estimate is relevant as an indication of potential mineralization on the property, the estimate is conceptual in nature and there has been insufficient exploration to define a mineral resource, it is uncertain whether further exploration will in fact result in a target being delineated as a mineral resource and the Company should not treat the historical estimate as a current mineral resource conforming to NI 43-101. This historical estimate should not be relied upon.
The Company's Management Discussion and Analysis for the period ending January 31, 2006, discloses "...536 drill holes were completed and, 142 holes yielded intercepts which grade over 2% nickel. One high grade zone identified in this program measured approx 500 meters by 700 meters with an average thickness of 4 to 5 meters. Drilling results to date indicate that the Bethlehem property can support a direct shipping operation." The Company wishes to clarify that these drill results did not delineate a mineral resource and as such do not support a direct shipping operations on the Bethlehem property. No independent assessment prepared by a "qualified person" has been carried out to determine whether there is a resource conforming to NI 43-101 which may be potentially economic. These estimates of size and grade constitute an exploration target that is conceptual in nature and are based on the interpretation of historical exploration data. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
In the Company's news release of November 1, 2005, it states that there are potential resources sufficient to initiate and sustain one operating module producing 5,000 metric tonnes of nickel per year for more than 15 years. The Company also discloses the potential for more than eight modules operating for more than 30 years. It further reports the results of its financial model that suggests an exceptionally high internal rate of return. These statements should not be relied upon as the Company does not have current measured, indicated or inferred mineral resources conforming to NI 43-101 that would support estimates of grades, mining life, production rates or internal rates of return or other economic information such as capital costs and operating costs and such disclosure is not supported by an independent technical report.
In its November 1, 2005 news release, the Company stated that it will soon transform into an exploration, development and production company and that it intended to apply projected revenues from its first production module towards future development. This statement is premature because the Company has not yet established commercial viability on any estimated mineralized resources to conform to NI 43-101 and has not carried out a feasibility study demonstrating the economic viability of any of its properties. The Company does not have current mineral resources or reserves, conformable with NI 43-101 supported by technical reports.
In the Company's August 1, 2006 news release, the Company announced its intention to initiate bulk sampling on the Alpha property through a "small scale mining operation" license. It should be noted that the nickel mineralization is currently an exploration target only. The Company has not yet established mineral resources or mineral reserves that would support a commercial mining operation. There is no guarantee that future exploration will result in the discovery of mineral resources or that these resources, if delineated, will be economic or sufficient to support a commercial mining operation. There is also no guarantee that the current small scale mining operation will be economic.
In its April 27, 2007 news release, the Company disclosed that it had received mine development permits and would commence mining immediately. The Company wishes to clarify that the permits and mining operations relate to its proposed small scale mining operation only. At present, the Philippine government has not yet granted full mineral tenement rights to the properties and the Company, at this time, only has the right to carry out small scale mining operations in accordance with the government regulations and not the right to commence full scale commercial production.
Further to the Company's news release of October 19, 2005, the Company's subsidiaries carried out an exploration, mapping and diamond drilling program on the Alpha Property. A total of 628 holes were drilled totaling 7,678 meters. 298 of these holes were wide spaced (100 meters by 100 meters) exploration holes (with some holes drilled on a 50 meter by 50 meter spacing) that were drilled in order to determine the presence of nickel laterite mineralization in the proposed "Small Scale Mining Operation (SSMO) areas". Upon identifying areas of further interest an additional 330 holes were drilled in the Patricia Louise SSMO commencing in September of 2006 on a closer spacing (10 meters by 10 meters) to provide better grade control for the mineralized areas.
The closer spaced drilling commenced with the issuance of the SSMO permits in September 2006 and this program ended in September 2007. These SSMO's allow the shipment of up to 50,000 tonnes of material per year for a two-year period in an area of 20 hectares. The Company has received three permits on the Alpha Property and it has applied for two additional permits.
The Company previously announced that Zhejian-Huanguang Smelting intended to complete an investment of 16% in the Company. This did not occur, nor has the Company entered into a definitive supply agreement for the potential supply of nickel bearing material as referenced in the Company's MD&A for the period ended April 30, 2007.
At present, the Company controls eight nickel laterite projects in Palawan and Samar in the Philippines covering an area greater than 22,000 hectares. The Alpha property is subject to three small scale mining operation permits issued by the government of the Philippines and to date the Company has excavated approximately 30,000 tonnes of mineralized material which is intended to be sold to Asian purchasers of such material when shipping capacity is available. Excavation of mineralized material is continuing however, it is subject to weather conditions. No excavation can be carried out during heavy rainfall periods as has been experienced recently. This material is being sorted and stockpiled at the coast at a compound owned and operated by the Company's Philippine subsidiaries.
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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