| | | November 17, 2005
Drilling Continues At Alpha And Bethlehem Properties
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| | MBMI RESOURCES INC. (MBR-TSXV) "MBMI" reports that the company currently has 11 drills operating on its Alpha and Bethlehem nickel properties in the Philippines. These properties are approximately three kilometers apart and are located within seven kilometres of tidewater near the town of Narra on the island of Palawan in the Philippines. The current focus of this drilling is to identify nickel resources suitable for the Company's Direct Shipping Program ("DSO"). Material for this program should consist of either high-grade (greater than 2% Nickel) saprolite; or mixed saprolite and laterite with a lower-grade (more than 1.5% Nickel). Markets for both the high grade and the mixed lower grade materials have been identified by MBMI to take advantage of current high nickel prices. The drilling is being undertaken where previous historical exploration activity has established nickel mineralization.
Under Philippine law it is possible to start mining on a small scale using a Small Scale Mining Permit. These permits are granted through the local authorities, and while proper environmental assessments have to be prepared and proper standards maintained, these permits can be obtained relatively quickly. An application for such a permit has been initiated for the Alpha and Bethlehem properties and it is anticipated that the first will be granted for Alpha by the end of 2005 since it has been fully endorsed by the local community. Once permits are granted, operations will start using the high grade zones identified from the current drilling program.
The Company has chosen this development path for two reasons;
- This small scale operation will essentially provide large scale pilot plant information, correlating the drilling data with actual product data. It will also provide operational practice with regard to grade control and product blending procedures.
- Just as importantly, the sale of the material will provide cash flow which can be utilised to provide funding for further drilling of the company's nickel properties, to quantify resources and to design full scale operations.
In the same area of Palawan, abutting MBMI's Alpha property, the Toronto Mine has recently been developed by Platinum Group Mining using Small Scale Mining Permits granted in late 2004. The mine has already shipped over 130,000 tons of DSO material containing more than 5 million pounds of Nickel.
Mr. John Cook, (P.Eng.) is the qualified person as defined in National Instrument 43-101, and has reviewed the contents of this news release.
MBMI now maintains a major interest in four nickel properties (12,180 hectares) in Palawan Philippines, and is completing the acquisition of an additional four nickel properties (10,150 hectares) in Samar, Philippines.
For further information:
David G. Tafel - VP Corporate Development
Tel: 604-683-1991; Fax: 604-683-8544; Toll free: 1-877-399-1991
Email: mbr@mbmiresources.com
Website: www.mbmiresources.com
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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