Continental Finalizing Mining License Application & Compiling Materials for Construction Permits

March 24, 2009 Filed Under: Copper Mining  

Continental Minerals Corporation announces an update on progress toward mine development at the Xietongmen property, located 240 kilometers from the city of Lhasa in Tibet Autonomous Region, People’s Republic of China. The Company expects that the Mining License Application for the Project will be formally submitted later this week.

Continental recently achieved another step towards finalizing its Mining License Application with the renewal of the existing Exploration License for the project area. The Exploration License was formally renewed on March 10, 2009, after a four month procedural review process. This clears the way for the formal submission of the Mining License Application. These materials include eight (8) reports, covering all aspects of the project development, as well as eight (8) existing licenses or permits that have already been granted by relevant government authorities during the initial project review process. These include the geological resources report, the environmental impact report, the water use permit, the reclamation plan approval and the preliminary land use permit, among others.

Concurrently, Continental has advanced basic and detailed engineering work, incorporating data from last year’s engineering field programs into the various design and construction elements in order to optimize the mine plan. A detailed review and update of capital and operating costs is underway to take advantage of the current supplier and construction climate. The objective is to estimate and include more regionally and nationally manufactured equipment, especially with respect to the process plant facilities, and mining and transport equipment.

President and CEO David Copeland said “The Company recognizes that now is the time to move the Xietongmen Project forward. There is renewed availability of construction materials, machinery, equipment and experienced contractors at more realistic prices, offering the opportunity for both cost improvements and shorter time lines to acquire equipment than has been experienced over the past few years. In addition, China is embarking on major infrastructure initiatives, including investments totalling approximately RMB3.7 trillion (CDN$650 billion) for a variety of infrastructure: new projects and upgrades to existing power systems, including increases to transmission and generating capacity, and major upgrading of rail and road transportation systems particularly in rural areas. We are evaluating where and when this infrastructure will be built and expect it will impact positively on our project.

Our goal is to build an economically robust project that integrates high standards of environmental performance and brings real benefits to the region. Continental and the Xietongmen Project are in a unique position at an opportune time to take advantage of China’s tremendous need for copper materials, development projects and investment opportunities within its economy.”