Crusher Equipment Purchase Results in Lower Capital Costs for Asian Mineral Resources Limitedadmin
Asian Mineral Resources Limited (TSX VENTURE: ASN) announced today that its 70% owned joint venture company, Ban Phuc Nickel Mines Limited (“BPNM”) is purchasing a second-hand crushing circuit for its Ban Phuc Nickel Project (“Ban Phuc”) in Vietnam. The equipment being acquired is located in northern Vietnam and with minimum refurbishment will meet the technical requirements of the Company’s Feasibility Study for treating the Project’s massive sulfide material.
The purchase will reduce total Project capital by an estimated US$450,000 from US$33.6 million to US$33.15 million (inclusive of contingency). BPNM has identified further potential capital cost savings of up to US$3,150,000 through the localising of equipment suppliers and fabrication activities within Vietnam and neighbouring China. Additional cost savings are being actively reviewed and pursued as more detailed engineering and planning work is undertaken by the Company’s staff and consultants.
“The purchase of the crusher equipment is the first step in the Company’s strategy to reduce capital costs where possible and lessen the delivery risk associated with the purchase of new equipment”, said Mr David Woodhouse, President and CEO of ASN. “We’ve taken the view that it is not a question of whether we will or won’t get our mining license, it’s only a matter of when. We are therefore favourably positioning ourselves in relation to equipment purchases, detailed planning and design works, and other permissible pre-capital expenditures to best achieve our late 2007 target date for Project commissioning.”
The Company continues the mining license application process having recently submitting its Ban Phuc resources and reserves dossier to the Vietnamese Mineral Resource Evaluation Council (“Council”) under the Ministry of Natural Resources and Environment (“MNRE”) for their approval. The dossier was prepared in compliance with the Council’s approved resource estimation parameters (reported May 4, 2006). BPNM expects to receive its mining license by the end of 2006 and is directing its Project implementation efforts accordingly. Negotiations with project financiers and smelter groups continue.
Asian Mineral Resources Limited is currently engaged in the exploration and development of the Vietnamese located Ban Phuc Nickel Project in which it currently has a 70% interest. The Project is part of a granted Foreign Investment License covering 150 square kilometres of highly prospective ultramafic hosted nickel occurrences.
This press release includes certain “Forward-Looking Statements.” All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Asian Mineral Resources Limited are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Asian Mineral Resources Limited’s expectations are disclosed under the heading “Risk Factors” and elsewhere in Asian Mineral Resources Limited documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Contacts: For further details on the Company and its projects please refer to the website at www.asianminres.com or contact: Asian Mineral Resources Limited David Woodhouse, President & CEO (416) 360-3412
Fax: (416) 362-6830
Grove Communications Inc. Kate Black (416) 360-3412
(416) 362-6830 (FAX)