Vancouver, B.C., June 22, 2009 - MBMI RESOURCES INC. ("MBMI" or the "Company") (TSX V: MBR) is pleased to report on the fiscal year financial period ended January 31, 2009, filed today. Full financial results may be found at www.sedar.com or the Company's website. A summary of the financial statements and highlights of the period and subsequent events are as follows:
Highlights
Approximately 118,000 Dry Metric Tonnes ("DMT") of nickel material with an average grade of 1.86% Ni and 18.5 % Fe shipped during the period for proceeds of approximately $8.8 million;
Small-Scale Mine Operating Permits ("SSMO") extended, enabling 200,000 additional DMT to be shipped by September, 2010, from the Alpha property;
Sales agreements executed with Asian industrial consumers for the purchase of raw nickel bearing material for delivery in 2009;
Current finished nickel material inventory of 50,128 DMT with an average grade of 1.49% Ni and 19.0% Fe in Alpha coastal stockpile;
Finalized independent National Instrument 43-101 ("NI 43-101") resource estimate of nickel bearing resources within the SSMO permitted areas on Alpha property.
The Company's proportionate cash flow share from nickel material sales of approximately $5.1 million continued to fund development activities.
Investment in Mineral Exploration and Development
The Company's share of total expenditures on mineral properties during the year ended January 31, 2009 was $9,398,415. Overall, exploration costs paid in the year are consistent with maintenance of the Alpha property permits, drilling on the Alpha property, assaying and operation of the lab, as well as consulting fees and wages for site personnel. Exploration costs also include the development of an excavation pit, hauling to the stockyard of mineralized nickel material, as well as crushing, drying, blending and sorting operations necessary for direct shipment operations. Revenues of $5,102,390 in respect of the Company's shipments of nickel laterite material were deducted from mineral properties and deferred exploration costs, leaving a net increase in deferred costs of $4,296,025.
During the previous year, nickel laterite material excavation commenced, the causeway, consisting of the dock facility and pier, and the road to the excavation site was completed and is currently undergoing improvements. The Company made its first shipment during the previous year and has made additional shipments since. The Company's focus in the immediate term is the attainment of a Financial and Technical Assistance Agreement ("FTAA") permit (application having been made by the Company's joint venture partner, Narra Nickel Mining Development Corp.), which once granted, will allow the company to make additional capital investment and expand operations.
In September, 2008, two (2) of the three (3) SSMO permits were renewed, thus allowing the Company to extract a further 200,000 DMT over the two year life of the permits.
During the year, management commissioned an independent NI 43-101compliant technical report on the nickel bearing resources within the 60 hectare SSMO permitted area of the 3,200 hectare Alpha property. The report confirmed the validity of the historical drilling data that has been compiled on the Alpha property. Further exploration beyond the restrictive (SSMO) areas will be conducted upon the issuance of additional exploration permits. The full report filed in May, 2009, may be found at www.sedar.com or the Company's website.
Results from the small-scale nickel material shipments have assisted the Company in moving toward the permitting and development of a potential full-scale operation pursuant to an FTAA and conforming to best global environmental standards and Philippine law. The Alpha project has received strong local community support and the project has been endorsed by the provincial Palawan Council for Sustainable Development.
Corporate Profile
MBMI Resources Inc. is a Canadian-based mining company focused on the exploration and development of nickel mineral properties in the Philippines. MBMI and its Philippine partners have an interest in nine nickel laterite projects in the Philippines, covering an area greater than 22,000 hectares. MBMI's objective is to become a major supplier of high-grade nickel products to primary industrial consumers in Asia.
ON BEHALF OF THE BOARD OF DIRECTORS
"Michael T. Mason"
President and Director
Further Information
For further information relating to the Company or this release, please refer to the Company's website at www.mbmiresources.com or contact Investor Relations at 1-877-399-1991 or .
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking information including but not limited to comments regarding the timing and content of upcoming financings, work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking information includes disclosure regarding possible future events, or conditions or results of operations that is based on assumptions about future economic conditions and courses of action, and therefore, involves inherent risks and uncertainties. Although management has a reasonable basis for the conclusions drawn, actual results may differ materially from those currently anticipated in such statements.
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