| ||January 11, 2005|
Corporate Update - Philippine Nickel Projects
| ||MBMI RESOURCES INC. (MBR-TSXV) "MBMI" with its Philippine partner Olympic Mines & Development Corporation ("Olympic") has completed the incorporation of a Philippine joint venture company, and finalized the transfer of the 3 Olympic nickel properties into it. The initial focus of the Joint Venture is on a Direct Shipping Ore (DSO) Program that exploits the nickel minerals from these properties. |
A review of reports from previous exploration and drilling activities conducted on the first property (the Bethlehem property), has revealed significant (>2% Ni) nickel mineralization on several identified areas. MBMI is negotiating a drilling contract for the first phase program on this property, which will comprise approx. 2500 meters of follow-up confirmatory core drilling, with a view to commence this program within the first quarter of the year. The program's objective will be to determine the commercial viability of a DSO program from the Bethlehem property.
The other two properties (the Rio Tuba properties) are contiguous to the "Coral Bay" project, in southern Palawan which is operated by a consortium of Japanese nickel producers including Sumitomo Metal Mining Co., Pacific Metals Co., and Mitsui Ltd.& Co. This group has been operating a successful Direct Shipping Ore facility for approximately 25 years. MBMI believes the location of the Rio Tuba properties presents an excellent opportunity for a cooperative resource development with the Coral Bay mining consortium and MBMI is discussing the possibility with the participating parties.
Pacific Metals Co. (Pamco) has expressed an interest in purchasing the saprolite ore from MBMI's nickel properties under a long term contract, subject to the ore conforming to their requirements, with respect to quantity, grade and metallurgy. Purchasing terms and conditions would be determined by London Metal Exchange nickel quotations. Pamco, headquartered in Japan, is the owner of one of the foremost ferronickel smelting plants in the world.
Additional Property Acquisitions
MBMI has identified additional properties with high grade nickel potential, and has entered into negotiations with the claim owners which may lead to the acquisition of these projects.
MBMI also holds the rights to three Canadian projects; the McMillan gold mine property in Espanola, Ontario, the Copper Prince Cu-Ni-Au/PGM property in Sudbury, Ontario, and the Squall Lake, Manitoba gold project.
For further information:
David G. Tafel - VP Corporate Development
Tel: 604-683-1991; Fax: 604-683-8544; Toll free: 1-877-399-1991
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
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