Agreement to Develop and Mine for High-Grade Manganese Ore Signed with Landowners in Southern Philippines, Pearl Asian Mining Industries Announces.
MANILA, Philippines -- Pearl Asian Mining Industries Inc., with stock symbols: U.S.A. (OTC: PAIM) and Germany (GER: R1Z)(FWB: R1Z), announces that it has signed an agreement to mine and extract high-grade manganese ore with a landowner in the southern Philippine island of Negros. Chairman Bae Katiguman signed the agreement with the landowners of a 21-hectare (52 Acre) property in the town of Calatrava, province of Negros Occidental, approximately 300 miles (483 Km) south of Manila. The agreement covers the immediate extraction of at most 3,000 metric tons of high-grade manganese ore within a three-month period, and the conduct of exploratory drilling to obtain more precise data on ore reserves and determine the possible presence of other minerals.
High-grade manganese ore (minimum 44% Manganese metal), used primarily in the production of steel, has no known substitute resulting in its high demand particularly in China and Japan, the two biggest manufacturers of steel in the world. Its current price is around $100 per metric ton of manganese ore having 50% Manganese, and is expected to rise further. A Swedish mining company previously operated a mine there in 1992 but abandoned the project due to political instability in the Philippines at the time. A study done by Geologist Jan Frostom for this Swedish company identified two types of manganese deposit: sedimentary deposits overlying limestone and epigenetic deposits formed by manganese leached from the sedimentary deposits by ground water. More importantly, the study confirmed the presence of high-grade manganese ore within and in the vicinity of the subject property, with probable ore reserves estimated at around 583,200 metric tons. At the present time and with the favorable economic and political situation in the country, several mining companies have approached landowners in the area, with Pearl Asian among the first to secure a definitive agreement to extract manganese ore.
International USA Liaison & IR Officer Gary Gotanco, who witnessed the signing, stated: "An initial feasibility study has been completed by PAIM, indicating that the sale of at most 3,000 metric tons of high-grade manganese ore alone would result in revenues of at least $300,000 and a net profit of at least $90,000, equivalent to a 30% net profit rate, within a three-month period. Furthermore, while the operation to mine the first 3,000 metric tons is ongoing, and if the results of the exploratory drilling activity are favorable, PAIM and the landowners have an understanding to discuss and negotiate for a longer term joint venture agreement, for a minimum of 20,000 metric tons of manganese ore per year. The planned joint venture agreement would have a minimum term of two years, and would contribute around $2 million in revenues and about $600,000 in net profit to PAIM's bottom line every year."
PAIM hopes to commence mining, extraction, and drilling for manganese ore in "Project Calatrava Manganese" within the 4th Quarter of 2007. There is also an opportunity for future expansion, considering that the 21 hectare (52 Acre) mine is only a small part of the subject of the Frostom study covering a total of at least 240 hectares (593 Acres). "In addition to the profitability aspect, this project will also have an enormous positive impact on the economy of Calatrava and the livelihood of its people, which is predominantly a sugar cane producing area, with the expected employment of a substantial number of locals in the mining/extraction operation, including operators of several heavy equipment, and the immediate implementation of community relations and livelihood-enhancing programs," added Gotanco.
This project marks PAIM's first venture into mining minerals other than gold, and the first positive result of its continuing aggressive exploration for new potentially lucrative mining prospects in the Philippines.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding the Company's projections regarding gold production in future periods. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of reserves, mineral deposits and production costs; mining and development risks; the risk of commodity price fluctuations; political and regulatory risks; risks of obtaining required operating permits and other risks and uncertainties. Penny Stocks are very highly speculative and may be unsuitable for all but very aggressive investors. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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|Date:||Aug 1, 2007|
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