aug 06 update

Cameco of Canada and Techsnabexport (Tenex) of Russia have recently confirmed an earlier intention, and signed an agreement to start search for new uranium mines in both Canada and Russia. This is the first venture by a foreign uranium miner into Russian uranium territory previously closed to all but state and security-controlled Soviet miners.

A joint venture, in which Cameco and Tenex will hold equal shares, will be constructed within the next three months, Tenex spokesman Yekaterina Shugaeva told Mineweb. Even earlier, she said, the two sides will set out and define the areas of prospective uranium search on the two national territories. In Russia, it is expected that exploration by the JV will commence in the south of the country in several high-grade uranium regions, including the Nesoglasiye Region. Cameco will provide the technology, and Tenex will keep the mined ore. In Canada, the two parties will split the mined material equally.

Shugaeva told Mineweb that Cameco is satisfied with the Russian limitation. "'The main condition ïs profit earning," she said. "For Canadians it is also a business, so even if the ore will be sold by us, but at a good market price, they will be satisfied with that. Besides, they are the first foreign [uranium mining] company to enter the Russian market, and now can work in areas of prospecting and mining - this is very prestigious for them, and they are very happy about it."

She added that, following an initial reconnaissance, "primary exploration will start, and after that, more detailed exploration will follow in case ores will be found. The development of the deposit will be the final stage if the results prove positive.'' Financing will be shared equally by the two companies.

In the global uranium market, Atomprom -- the Russian state holding which incorporates Tenex, a uranium fuel exporter; TVEL, a processor; and the Unified Uranium Mining Company -- is the seventh largest holder of uranium ore reserves, trailing Australia, Kazakhstan, US, Canada, South Africa, and Brazil; the third largest producer of nuclear fuel, after Areva of France and British Nuclear Fuel; and the fifth largest uranium miner, well behind the world leader, Cameco, but ahead of current output from BHPB's Olympic Dam mine.

Tenex has also been discussing joint-venture exploration or concentrate processing deals with Mitsui, BHP Billiton, Rio Tinto, and South African interests. In 2005, the domestic Russian mines were delivering yellowcake to the domestic processing factories of TVEL for just over $17 per pound. Last year, the international spot price for yellowcake hit all-time highs, and for this year Tenex says it expects spot prices will range between $65 and $85/lb.

The drive by Tenex to find new uranium to mine stems, in part, from the desire to take the domestic lead within the nuclear industry complex vis-a-vis rivals TVEL and UUMC; and also from the imperative, issued by the Kremlin, to find new sources of uranium ore to meet ambitious long-term plans for increasing nuclear reactor capacity. Last year, the federal government set a target of increasing nuclear power generation in the country from 15% of total energy supplies at present to 25%, driven by the construction of some 40 new reactors.

Wits Basin Enters into a LOI to Acquire PRC Mining Property

Wits Basin Precious Minerals Inc. announced that it has entered into a letter of intent to purchase a 100% interest in Maanshan Mining located in the People’s Republic of China (PRC). Maanshan Mining estimates its 2007 free cash flow will be in excess of US $15,000,000.

Wits Basin has obtained a financing commitment for up to US $20,000,000 to be used as a down payment on the purchase. The balance of the purchase price is to be paid for in equity securities upon completion of the merger with Easyknit Enterprises Holdings Limited (SEHK: 616). The final terms of the equity issuance will be based upon completed due diligence but is estimated to be less than five percent of the outstanding share balance of the merged companies. Consummation of the purchase will require shareholder approval and is subject to various other conditions, including completion of definitive documentation.

The timing for the submission to shareholders for a vote will occur after March 31, 2007 in order to allow completion of definitive merger documents with Easyknit as well as completion of required due diligence on the Maanshan Mining properties.

Maanshan Mining is comprised of two operating iron mines-the Xiao Nan Shan Iron Deposits (“Xiao Nan Shan”) and the Ma Tang Iron Deposits (“Ma Tang”), and a processing plant-the Nanjing Sudan Processing Plant. The principal business of Maanshan Mining is mining, the processing and selling of iron ore and concentrates.

Maanshan Mining estimates that the total iron ore available for extraction from the two mines is approximately 95 million tons, with Xiao Nan Shan at approximately 73 million tons and Ma Tang at approximately 22 million tons. Maanshan Mining believes that these extraction estimates are sufficient to allow for mining activities, under the proposed production targets, to continue for approximately 15 years.

The proximity of the two mines to its markets avails Maanshan’s customers to favorably low transportation costs, especially in comparison with those of imported iron ore.

Maanshan Mining completed a new production line in June 2006, which has increased overall production of iron ore concentrates by 150% to 250,000 tons from 100,000 tons per annum previously. Furthermore, Maanshan Mining plans to increase the production capacity of its mining operations and processing capability to produce 600,000 tons of iron ore concentrates in 2007 and 1,000,000 tons of iron concentrates in 2008. This proposed increased production scale could provide tremendous growth in Maanshan Mining’s financial position for 2007 and going forward.

Imports of iron ore by China in 2005 increased to 275 million tons, an increase of one-third as compared to 208 million tons imported in 2004. China continues to be the largest net importer of iron ore and it is expected that China’s demand for iron ore will only increase.

Wits Basin Precious Minerals Inc. is a minerals exploration and development company holding interests in three exploration projects and currently do not claim to have any mineral reserves on any project. The common stock trades on the Over-the-Counter Bulletin Board under the symbol WITM. www.witsbasin.com.

RIO Tinto Expands Search

RIO Tinto Expands Exploration Efforts

Rio Tinto remains confident that China's seemingly insatiable demand for minerals and other commodities will continue. But to feed this demand, the company is raising the risk profile of its exploration efforts as it searches the world for more minerals. RIO is looking in a total of 35 countries around the world, from the old Soviet Union, to Guinea in Africa, Indonesia, Australia, the US and in the Arctic. It is a conscious decision to step up the pace of exploration that has seen the group boost spending in this area to well over $400 million a year.

The mining giant's chairman Paul Skinner said in the 2006 annual report that the resource boom will continue. He forecast positive growth in most of the major economies, particularly China in 2007. But he did single out the tight supply of skilled labour and shortages of tires and explosives would reinforce the strength of the current cycle and keep prices at high levels.

Western Australia, where Rio's Australian operations are centred on iron ore, and in Queensland where they are based on coal, bauxite, alumina and aluminium, have reputations for being high cost areas to operate at the moment: on a world wide basis, not just in Australia. That's because of the intensity of shortages. However Mr. Skinner pointed out that an offsetting trend was the continued low level of stocks of commodities, such as metals and ores.

Rio earned US $7.438 billion (A $9.53 billion) in 2006, its third year of record earnings in a row.

More than $400 million was spent last year in around 35 countries on a host of prospects, projects and proving programs from initial discovery all the way to pre-feasibility projects on iron ore projects in the Pilbara, copper in the US, industrial minerals in Serbia, diamonds and coal in various countries, bauxite in Africa, and other prospects.

At the end of 2006, Rio Tinto was exploring in over 35 countries for a broad range of commodities including copper, diamonds, nickel, industrial minerals, bauxite, uranium, iron ore and coal. Exploration employs about 180 geoscientists around the world and has a total complement of approximately 900 people.

Encouraging results were obtained from a number of locations. "Order of magnitude studies are in progress at the Chapudi project (coal, South Africa) and the Bunder project (diamonds, India). Negotiations continue on a Contract of Work for the La Sampala project (nickel, Indonesia) with the Government of Indonesia. During 2007 projects in Mozambique and Serbia (industrial minerals), Brazil (bauxite), Colombia (coal), and the US (coal and nickel) are expected to commence order of magnitude studies to assess their economic potential for advancement to pre-feasibility study.

"Diamond exploration continues, focused in Canada, southern Africa, Mauritania, Brazil and India. Work commenced in Mali. A number of kimberlite pipes were discovered and follow up test work is in progress to assess economic potential.

"Copper exploration continued in Turkey, Kazakhstan, Peru, Chile, Argentina, Mexico and the US and in Russia under the RioNor joint venture with Norilsk Nickel. Drilling encountered significant copper mineralisation in Chile, Kazahkstan and the US, warranting further follow up drill testing.

"Exploration focus on the bulk commodities, iron ore, coal and bauxite continued in 2006. Drilling progressed on bauxite projects in Brazil. Thermal and coking coal projects were drill tested in the US, Canada, southern Africa, Colombia and Mongolia."Results in all countries are encouraging and work will continue in 2007. Iron ore exploration continued in west Africa and further iron ore resources in the Pilbara in Australia are expected to be handed over to the iron ore product group in early 2007.

"Industrial minerals exploration was active in many parts of the world including southern Africa, Europe and South America. Following the successful tender for the Jarandol concession (Borates, Serbia), drilling has commenced.

"Brownfields exploration support continued at several Rio Tinto operations and product group projects including Diavik, Argyle, Kennecott Utah Copper, Eagle, Energy Resources of Australia, La Granja, Pilbara Iron, Greens Creek and Rössing. Exploration also provided expertise to the brownfields programs at the Freeport and Cortez joint ventures."One day we will hear that one or two of these projects has been good enough to be developed: one of the earliest might by the huge Resolution copper project in the US.

Source: Australasian Investment Review

Lonmin Secures US $100 million Loan from IFC to Accelerate Platinum Mining Projects

IFC wants oil and gas sectors to replicate sustainable community development programmes.

The International Finance Corporation (IFC), private sector arm of the World Bank Group, wants to see the global oil and gas sectors replicate sustainable community development programmes implemented by companies such as Lonmin (LSE, JSE) in South Africa.

Rashad Kaldany, IFC director of Oil, Gas, Mining and Chemicals, said at a Johannesburg press conference, where a $150 million debt and equity package to Lonmin was announced, that the IFC would like these sectors that generate significant revenue to build the capacity of local and regional governments and contribute to infrastructure.

Kaldany said the IFC was "very open" to work with other companies in South Africa and Africa that demonstrate a long-term commitment to the sustainability of communities.

"South Africa has a strong programme (of community development, involving social and labour plans) and numerous companies are not only moving in the right direction, but increasingly feel they stand to benefit if communities are sustainable in the long term."

"From the IFC's point of view, we think it could be a very important driver of economic development in sub-Saharan Africa."

He also said the IFC approved of community development programmes that were undertaken in conjunction with communities.

One of the reasons the IFC granted Lonmin the debt package was the fact that it could learn from the platinum producer, particularly in the area of creating long-term sustainable employment.

Lonmin chief executive Brad Mills said the long -term debt facility that was granted to the company was quite unique and new in the industry.

It consists of a US $100 million debt facility that will provide BEE players with capital to participate in the company's "larger development projects" and an option for the IFC to invest up to US $50 million in Lonmin equity.

The first $15 million will be used to fund local community projects around its South African operations.

The third element of the package involves a US $5.9 million Technical assistance and Advisory services programme to increase the use of BEE suppliers, boost female employees from 4 to 10 percent in two to three years and increase community participation in HIV/Aids testing to 40 percent.

It also involves a community development and training programme and the community will soon reap the benefits of additional jobs created and 5,000 houses built over the next five years.

It would both enable the more rapid development of the company project pipeline and take some pressure off BEE partners in terms of finance to participate in its projects.

The facility would be used across the spectrum of its project pipeline, while the Pandora and Limpopo phase 2 platinum mining projects each required 15-20% of financing by BEE partners.

Lonmin is ramping up to 1.4 million ounces of platinum production by 2012 and will release the capital expenditure to reach this level at the end of the next quarter.

Mills could not disclose the terms of the package, but said it was commercial and competitive.

Bateman's Orders Grew as Mining Boom Continues

Bateman Engineering, the South African-born global mining engineering and project management group, grew new orders by 210 percent to more than $540 million (R4 billion) in the six months to December.

The company, which is listed on London's Alternative Investment Market, said the award of three major projects, including a $137 million expansion of the Richards Bay coal terminal, contributed to its robust order book for the interim period.

The company also won the $258 million Lumwana copper contract in Zambia and a $35 million project in India for Hindustan Zinc, a subsidiary of mining major Vedanta Resources.

New orders for the six months significantly exceeded those for the full 2005/06 financial year.

Revenue came in at $236.3 million, up 54 percent from a year earlier, while attributable profit rose 39 percent to $7.16 million.

Profit after tax from continuing operations jumped 37 percent to $6.8 million, and diluted earnings a share increased by almost 37 percent to 18.82 US cents.

Chief financial officer Jonathan Ben-Cnaan told Reuters that Bateman was looking at "bolt-on acquisitions" in Australia and Russia, and could buy more than one company before the end of the year.

Greenstone Mining Signs Memorandum with Mozambique’s State Petroleum Company

Greenstone Mining, a Mbabane based company, has signed a memorandum of understanding (MoU) with the government of Mozambique’s state petroleum company, ENH for various mining projects.

These include the construction and operation of a 100 000 barrel per day petroleum refinery, 3.5 giga watt electricity generation plant and 3 000 hectares of hydroponic agriculture facility, believed to be the biggest combined facility of its kind in Africa.

Meanwhile, Finance Minister Majozi Sithole pointed out in his budget speech, delivered on February 21, that to increase local energy generation, government was working on establishing a 19 Megawatt Hydro -Power Station at Maguga dam to be commissioned this year while a feasibility study for a possible 1000 - 2000 Megawatt Coal Fired Power Station to utilise the country’s coal reserves was being undertaken.

“The total value of the investment in Mozambique is about E37 billion (US$5 billion) and the project is expected on stream within five years,” Greenstone’s Fakudze said, adding that the Mozambican government held a 47 percent share in the joint venture company.

Fakudze explained that the project entailed the use of high technology to convert coal, oil and natural gas into petrol, diesel and jet fuel while considering every aspect of long term national economic development as well as environmental impact.

Source: The Swazi Observer, Swaziland

Ascension Securities Ltd to Advise Bushveld Platinum

Ascension Securities Ltd announced that they will be acting as corporate advisers to Bushveld Platinum Plc, which was incorporated in July 2006 in order to acquire and develop Platinum Group Metals mining exploration properties in the Bushveld Complex of South Africa.

The Bushveld Complex is renowned for the continuity and economic importance of its mineral deposits. It contains a large proportion of the world's resources of PGMs and accounts for the majority of worldwide PGM production. PGMs are platinum, ruthenium, rhodium, palladium, osmium, and iridium. They are metals which are elements with similar physical and chemical properties.

The comopany has entered into an option agreement with Ridge Mining (Pty) Limited, a subsidiary of Ridge, pursuant to which it is entitled to acquire three properties (the Projects), two of which are regarded by the Directors as potentially having significant PGM resources, and the third as being potentially a significant base metals deposit with PGM credits.

• Red Bush Ridge is a deposit located in the Eastern Limb of the Bushveld Complex close to Impala Platinum's Rhodium Reefs project and to Anglo Platinum's Modikwa project and Modikwa mine. It a deep deposit with a potential mine depth from 1,900m. It is believed to have potentially significant resources of PGMs located in both the Marensky Reef and UG2 reef with potentially recoverable PGMs of over 30 million ozs. A deposit of this size would enable the development of, in relative terms, a medium sized PGM producer.

• Rooikraal lies in the Loskop lobe of the main Eastern Limb of the Bushveld Complex (about 150 km to the South West of Red Bush Ridge) and adjoins Ridge's Blue Ridge project. It is a surface deposit of unusual geology which has made a determination of its resources difficult to make. The Competent Person has expressed the view to the Company that the geology can be modelled with further exploration and that the deposit has potential for hosting significant PGM resources principally within a Marensky Reef type deposit.

• Fonte Verde is located outside of the main Bushveld Complex within a satellite intrusion to the south of the Complex. The deposit is believed to be over 50 million tons containing low grade Nickel, Copper and PGMs, and has the potential to be developed into a substantial base metals mine.

The Company believes that each of the three projects has the potential to underpin the creation of a sizeable mining company, and that the Red Bush Ridge and Rooikraal projects by themselves would give the Company the potential to develop into significant Platinum focussed mining house.

The Company has an experienced Board and team of consultants who together have substantial mining, finance and legal experience and expertise, including in relation to mining in SA, and the listing of companies on AIM.

Source: Newswire Today

Macarthur Mining Looks at Coal Mining Projects in Mozambique

Australian mining company, Macarthur Coal is looking at projects in Mozambique, amongst other countries, in order to increase its reserves, the company’s chairwoman Nicole Hollows said.

“Mozambique has extremely large coal reserves, as does Mongolia, and these are countries where we plan to go,” Hollows said in a press conference, adding that the company had “looked at” investment opportunities in Mozambique.

Macarthur Coal is responsible for a fifth of the world’s total coal exports and, similarly to other mining companies, is facing increasing difficulties in finding available mining resources, due to intense competition between sector companies.

The Zambeze basin, in central Mozambique, is currently the focus of the country’s coal mining projects, including Brazilian giant Companhia do Vale do Rio Doce (CVRD), in Moatize, with estimated reserves of US$2.5 billion.

This mines, which will have its own export terminal at Beira port, is expected to produce some 26 million metric tons of coal per year, from 2010, making it the largest of its kind in the southern hemisphere.

A consortium made up of South African companies Belde and Central African Mining and Exploration Company is also prospecting the same 67,000-hectare area.

Source: macauhub

Rockwell’s Acquisition in Middle Orange River Area, South Africa

On March 6, 2007, Rockwell Ventures and Trans Hex Group Limited announced that the companies have entered into an agreement whereby Rockwell's wholly owned South African subsidiary, Rockwell Resources RSA (Pty) Ltd. may acquire two open pit alluvial diamond mines and three alluvial diamond exploration projects from Trans Hex.

The two open pit alluvial diamond mines, namely Saxendrift and Niewejaarskraal, and three alluvial diamond exploration projects, namely Kwartelspan, Zwemkuil-Mooidraai and Remhoogte-Holsloot, are located along the southern bank of the Middle Orange River between Douglas and Prieska in the Northern Cape Province of South Africa.

Details available at www.rockwellventures.com.

Chinese Zijin Mining Looks at Spinning Off Base Metals

The Zijin Mining Group, which operates China’s largest gold mine, is contemplating spinning off its base metals division, which mines copper, molybdenum, zinc, tin and iron ore.

China's Zijin Mining Group transformed from a pure gold producer when it went public in late 2003. It now owns eight copper and gold mines. The company also operates a smelter and refinery division, which markets gold bullion and silver bars.

Earlier this year, Zijin led a consortium of Chinese mining companies which agreed to buy U.K.-based Monterrico Metals, in an effort to break into the South American mining market.

China Economic Net reports that Zijin now has 455 tonnes of gold reserves, 151 tonnes of platinum and palladium, and 6.7 million tonnes of copper.

Zijin Chairman Chen Jinghe said that a spin-off of the base metals business is possible, but there is presently not a concrete plan. Earlier this month, Zijin announced plans to increase copper production by 36 percent to 55,000 tons in 2007.

Base metals accounted for almost 50 percent of Zijin's net profit last year. Chen told CE.cn that "we'll try to keep gold or precious metals as our major profit contributor and maintain it at a level of more than 50 percent. If not, gold should be kept as the single largest business compared with other metals."

The company has engaged in partnerships with Gold Fields of South Africa, Allied Gold of Australia, and Canadian junior Pinnacle Mines, among others.

Mining Operations Scheduled to Begin This Week at Capital Gold's El Chanate Gold Mining Project in Sonora, Mexico

Capital Gold Corporation Begins Mining at El Chanate Gold Mining Project, Sonora, Mexico

Capital Gold Corporation (TSX: CGC; OTC Bulletin Board: CGLD) said that mining operations will begin at the company's El Chanate gold mining project, located in Sonora, Mexico.

Gifford Dieterle, Chairman of Capital Gold said, "The process of stacking crushed ore on the leach pads will begin. We have been stacking screened ore on the pads for several weeks for use as overliner material, but now that we are ready to commence stacking crushed ore, the production process has truly begun."

John Brownlie, Capital Gold's Chief Operating Officer said his production team will be stacking crushed ore for several weeks before they start applying the cyanide solution. "Once the solution application begins, we are probably anywhere from 45 to 75 days away from the beginning of actual gold production at El Chanate," he said. The El Chanate mine construction is nearly complete. Both the electrical system and the crushing system have been hot commissioned. The only material remaining system, the ADR plant (which extracts the gold from the cyanide solution), should be completed in April. Gold production will follow shortly thereafter. The project continues to stay within budget.

Meanwhile, an aggressive drilling program, designed with the intent of bringing additional gold ounces into the reserve totals, is moving along at a rapid pace. To date, 33 holes have been drilled, totaling 4,650 meters. The average depth has been 141 meters. Already 3,050 samples have been collected. Assay results should start coming in later this month.

"We started drilling in the area south of the 'East Pit' and we have drilled between the two planned pits, and around the south side of the main planned pit. Drilling has focused on areas close to the pit limits, outside the reserve blocks. Drilling along the south side of the pit has shown mineralization that may extend further south, especially on the southwest side of the pit. Drilling on the west side of the pit also looks promising. Nine additional holes have been added to the program, bringing the new total to 60 holes," Brownlie added. The remaining holes left to be drilled will be exploration holes concentrated on the eastern extremities of the known ore body. The drilling program is expected to be concluded in early April.

Capital Gold Corp. (CGLD) is a gold exploration and development company. CGLD, through its Mexican subsidiaries, owns 100% of the El Chanate gold property in Sonora, Mexico. During August 2006 CGLD completed debt financing for the construction of the Chanate Mine. Engineering Procurement and Construction Management activities commenced June 1, 2006. Gold production is estimated to begin in the second quarter of 2007. http://www.capitalgoldcorp.com.

Halo Reports Geophysical Surveys Underway at West Red Lake Project

Marc Cernovitch, Chairman of Halo Resources Ltd. announced that 60 line-km of geophysical surveys is underway at the 1,500 square hectares West Red Lake Project, located 35 km west of Red Lake, Ontario.

"Completion of the geophysical surveys this winter allows us to accelerate evaluation of the property and identify favourable gold targets, in particularly where surveys extend over lakes. We now have the opportunity to define targets based on prospecting and geophysical anomalies so that we can fast-track the project for drilling in a few months," said Lynda Bloom, President & CEO.

As previously reported (press release December 18, 2006), Halo identified the North and South Zones within a favourable geologic environment, equidistant between the historic Miles (Red Lake) and May-Spiers deposits. Trench 8-01 located 200 m southeast of the North Zone trenches averaged 7.83 g/t gold, 65.83 g/t silver and 0.86% ppm copper from eight samples collected. The maximum gold value returned 22.7 g/t and the maximum silver and copper values returned 106 g/t and 3.63% respectively.

A sample collected near the 9-44 "shaft" of the South Zone, located 350 m south of the North Zone trenches returned 81 g/t gold, 100 g/t silver and 4.61% copper over a width of 0.70 m. In addition, a sample taken from the 10-23 pit located along strike about 80 m west of the 9-44 location yielded 3.62 g/t gold, 100 g/t silver and 8040 ppm arsenic.

The property was acquired by option from Goldcorp Inc., in April 2006. Spectral IP (Induced Polarization), resistivity and magnetometer surveying at 100 m line intervals are being carried out by JVX Ltd. of Richmond Hill, Ontario covering the area between the historic Miles (Red Lake) and May-Spiers deposits.

Halo is a Canadian-based resource company focused on the acquisition of near production base and precious base metal deposits. Currently the Company owns or has an interest in 3 projects: Duport, which is an advanced stage gold project; West Red Lake, which is a gold exploration project, and the Sherridon project that is a combination of mature and grassroots volcanogenic massive sulphide (VMS) copper, zinc and gold exploration opportunities.

Prime Meridian Begins Test Drilling near Yellow Dog Plains, Marquette, Michigan

Canadian mining company Prime Meridian Resources Corp. of Calgary, Alberta has announced plans to begin test drilling this month near the proposed site of the Kennecott Eagle Minerals Company Eagle Project, Marquette, Michigan.

Prime Meridian Resources plans to test drill at locations within two miles of the nickel and copper deposit on the Yellow Dog Plains sought by Kennecott.

“Drilling is planned to begin in mid-March when the first drill rig is scheduled to arrive,” the company said in a recent news release.

Field crews from a Quebec company will conduct ground surveys to determine drilling sites.

Prime Meridian officials said the crews will establish and survey grids across the company’s high-priority drill targets developed since January 2000. Those targets were located from a combination of electromagnetic, magnetic and gravity airborne surveys and ground reconnaissance exploration.

Drilling is expected to continue throughout the year, with the company drilling all of its high-priority targets and others currently being developed on Prime Meridian lands, the company said.

“The sequence of targets to be drill tested is dictated by logistics and seasonal access such as road bans and winter restrictions in some areas,” the release stated. “Drilling of up to five targets before spring break-up is planned with drill results to be reported after receipt of core analyses and interpretations are compiled.”

Similar to the Kennecott Eagle project — Prime Meridian will be searching for minerals within sulfide ores, which, if mined, could ultimately lead to acid mine drainage and the leaching of heavy metals, Dick Huey, co-founder of Save the Wild U.P., stated in a press release.

Save the Wild U.P. identifies itself as a “grassroots group of citizens concerned about the impact of metallic sulfide mining.”

Huey said grassroots groups concerned with the dangers of sulfide mining pointed to the Prime Meridian release as “proof positive that the U.P. is poised to become a new mining district and, subsequently, an environmental catastrophe waiting to happen.

“Save the Wild U.P. has been ringing an alarm about a dangerous new mining district for some time, but this is the first confirmation from industry.”

Prime Meridian’s drilling will start in the Baraga Basin and Kiernan Sill nickel-copper project areas in settings similar to the Eagle Deposit. The areas are only accessible during winter.

The company’s strategy for nickel-copper exploration has been to focus on the northerly portion of the Mid-continent Rift located in Michigan and Minnesota.

“The rift provides a deep-seated structure and conduit that permits the development of magmatic nickel-copper (plus or minus cobalt), platinum, palladium and gold mineralization to be deposited, which is similar to Kennecott-Rio Tinto’s Eagle Deposit,” the release said.

All of the Prime Meridian nickel-copper-platinum-palladium targets are in Michigan and southeast Minnesota and are in settings similar to the Eagle Deposit. Four of the six Baraga Basin targets are within 1.9 miles of the Eagle deposit and will be drilled later this year when access can be constructed.

Prime Meridian is also planning airborne surveys over three additional nickel-copper projects including Wolf Mountain-Wakefield Sill and Norway Lake South Branch Sill, both in Michigan, and another site in Minnesota.

Source: The Mining Journal

McIlvaine Company

Northfield, IL 60093-2743

Tel: 847-784-0012; Fax: 847-784-0061

E-mail: editor@mcilvainecompany.com

Web site: www.mcilvainecompany.com