| | | September 06, 2007
MBMI Reports On Mining Progress - Alpha Nickel Project
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| | September 06, 2007. MBMI RESOURCES INC. (MBR:TSXV) ("MBMI") ("the Company") wishes to provide an overview and update of the mining activity and infrastructure progress by subsidiary Narra Nickel Mining and Development Corp. ("Narra Nickel"), which is developing the Alpha direct shipping nickel mine in Palawan, Philippines.
Narra Nickel Infrastructure:
The road to the Alpha mine site was completed during July, and Narra Nickel has steadily increased the daily ore delivery rate to its stockpile area on the coast as road conditions have been continually improved. Subject to weather conditions, operations are maintained on a 24 hours a day, 7 day per week schedule. During August, the peak rainy period for Palawan, operations were frequently disrupted as weather created unsafe transit conditions on the mine road; however, the gradual transition into the dry season is expected to commence shortly allowing the weekly ore production rate to rise to targeted levels.
The sample preparation and chemical laboratories, and office facility has been completed and both laboratories have completed installation, modification, and calibration periods. A certified international laboratory has been retained to manage the material preparation, and assay operations and assist in training internal staff that will permit transfer of the management to Narra Nickel in the future. The causeway at the port has been completed and has the capacity to accommodate loading of 3 barges simultaneously.
Equipment Availability:
In addition to poor weather conditions, initial delays in construction and production were due to inferior equipment being supplied by local contractors, however, these challenges have been rectified and adequate equipment, operators, and additional contractors have now been integrated into the project. New heavy equipment will begin to arrive at the Alpha property during September under a lease program arranged to prevent future operational disruptions created by equipment availability. Narra Nickel has arranged the leasing of barges and tug tandems scheduled to be used for transfer of nickel materials from the stockpile to ocean-going vessels.
Nickel Material Stockpile:
Currently, Narra Nickel has delivered in excess of 25,000 metric tons of material from the mine to the stockpile area and the rate of daily delivery has steadily increased as the mine road and weather have improved. As the quantity and qualities of nickel material (desired by commercial consumers) have been properly dried and prepared for shipment, loading of cargoes shall commence. Narra Nickel has arranged for the sale of all permitted production during the current calendar year, and has the capacity to expand these sales once increased production permits are obtained. The initial stockpile area has been constructed, and is currently being utilized for ore preparation for the immediate shipments. Designs are being completed, and expansion underway to increase this area to greater than 40 hectares in size.
Exploration:
Narra Nickel has 10 rotary core drills operating on the Alpha property and MBMI is currently compiling a summary of the results which will be news released as soon as available. Narra Nickel has arranged the lease of a tracked RC drill unit which should increase the sample and drill data production rate once delivery of this unit is completed during fourth quarter.
Permit Process:
In addition to the Alpha Property, MBMI subsidiaries have been actively pursuing full scale mine permits for three additional properties on the Island of Palawan, and the exploration permit process is well underway on additional eastern Philippine Properties.
Summary
As with any start-up project, it has been difficult to accurately predict the first shipment date due to the nature of the permitting process, poor weather conditions, and equipment problems encountered during mine construction. Management is confident completion of this objective will be achieved in the very near term and subsequent shipment scheduling dates will be accelerated.
MBMI and its Philippine partners jointly control eight nickel laterite projects in Palawan and Samar, Philippines covering an area greater than 22,000 hectares where the objective is to develop a series of projects supplying nickel products to the primary nickel consumers in Asia.
For further information:
David G. Tafel - VP Corporate Development, Director
Tel: 604-683-1991
Fax: 604-683-8544
Toll free: 1-877-399-1991
Email: mbr@mbmiresources.com
Website: www.mbmiresources.com
Forward Looking Statement
This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from either of the Companies' expectations are in Company documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com. The Company disclaims any intention or obligation to revise or update such statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
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