Magnus International Resources Inc. Releases Corporate Overview.VANCOUVER, British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography -- Magnus International Resources Inc. ("Magnus") (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :MGNU) is pleased to release its latest corporate overview. A pdf version of this corporate overview will be available at the Magnus website at www.magnusresources.com on Saturday March 5, 2005. Preliminary geochemical soil analysis results from Magnus' Huidong property are also expected to be released shortly. Company Overview Magnus International Resources, Inc. (OTCBB:MGNU) specializes in identifying, acquiring and developing precious and base metal properties in China. Magnus is Magnus I (Magnus the Good), 1024–47, king of Norway (1035–47) and Denmark (1042–47), son of Olaf II. He was recalled from exile in 1035 by the former opponents of Olaf when they rebelled against Sweyn, son of Canute. currently focused on high-grade gold projects. At present, Magnus has the right to earn a 90% interest in three gold exploration projects in China's mineral-rich Sichuan and Yunnan provinces Noun 1. Yunnan province - a province of southern China Yunnan Cathay, China, Communist China, mainland China, People's Republic of China, PRC, Red China - a communist nation that covers a vast territory in eastern Asia; the most populous country in the world . These properties comprise Huidong (83.29 sq. km) and Luquan (44.02 sq. km) for which Magnus holds an exploration license through Long Teng Mining Ltd., its Chinese joint venture company, and Xintaizi (3 sq. km), for which Magnus is in the process of acquiring an existing mining license. In addition, Magnus has signed a preliminary joint venture agreement for exploration of the Qilian property (200 sq. km) in Qinghai province - also with the right to earn a 90% interest. Huidong Overview The Huidong (pronounced hwee-dong) property is located immediately northwest of the Boka Gold Project of Southwestern Resources (Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. : "SWG SWG abbr. standard wire gauge " - with a 3 year share price low of Cdn$1.065 and high of Cdn$21.50). The Huidong project is on trend with and is geologically similar to the richly mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. Boka Gold Project. Huidong is known to be gold-rich. There are numerous small-scale peasant mining tunnels throughout the area and placer gold has also been recovered from rivers and streams that drain the area. Southwestern has made a series of gold discoveries that have established Boka as a potential world-class gold deposit. Recently reported drilling results have been as significant as 10.2 g/t over 77.45m. One analyst report, by a major US brokerage firm, suggests that the Boka property may host as much as 8.4 million ounces of gold within a number of high-grade gold zones. This estimate is based on the exploration work that has been done to date. The Chinese joint venture partner of Magnus for all of its properties to date - Team 209 - played a critical role in exploring and developing the Boka project prior to bringing in Southwestern Resources as its foreign joint venture partner to further develop the property. Huidong Joint Venture In July 2004, Magnus established Long Teng ("Rising Dragon") Mining Ltd., a Sino-foreign joint venture with Team 209, to explore the Huidong gold property. Later the joint venture added the Luquan Property, located in neighboring neigh·bor n. 1. One who lives near or next to another. 2. A person, place, or thing adjacent to or located near another. 3. A fellow human. 4. Used as a form of familiar address. v. Yunnan province, to the exploration area. Magnus has committed to spending US$5 million on the Huidong and Luquan properties over four years. In return, Magnus will earn a 90% interest in the property. Team 209 will own the remaining 10%. Within the first eight months, by February 2005, Magnus has contributed $1,230,000 to the Long Teng joint venture. Boka Gold Project Geology Boka gold mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. is hosted within a sequence of Middle to Upper Proterozoic carbonaceous car·bo·na·ceous adj. Consisting of, containing, relating to, or yielding carbon. carbonaceous Adjective of, resembling, or containing carbon Adj. 1. shales, calcareous calcareous /cal·car·e·ous/ (kal-kar´e-us) pertaining to or containing lime; chalky. cal·car·e·ous adj. shales and sandstones deposited in a Late Proterozoic eugeosyncline and consolidated during the Jinningian Orogeny orogeny Mountain-building event, generally one that occurs in a geosyncline. Orogeny tends to occur during a relatively short geologic time frame. It is usually accompanied by folding and faulting of strata and by the deposition of sediments in areas adjacent to the orogenic . The majority of the gold occurs in east-west and northwest trending ductile-brittle faults and in stratabound zones characterized by extensive multi-stage breccia/shear development and accompanied by quartz-carbonate and sulphide (pyrite pyrite (pī`rīt) or iron pyrites (pīrī`tēz, pə–, pī`rīts), pale brass-yellow mineral, the bisulfide of iron, FeS2. ) replacement. The extensive faulting and resulting mountainous terrain in the area was created by the interaction of numerous east-west faults with a major north-trending fault that is thought to have played a major role in creating the rich mines of the region, the Panxi Rift. The extreme mechanical actions of bending and breaking the rock created spaces and pathways through which metal-bearing fluids passed. There are twelve known gold zones within the Boka Project Area, all of which occur within a 25 km long north-south structural zone and are confined to a specific stratigraphic stra·tig·ra·phy n. The study of rock strata, especially the distribution, deposition, and age of sedimentary rocks. strat horizon - collectively these constitute the Boka Trend. Huidong & the Boka Trend Drilling at Boka has established a well-defined, richly-mineralized, north-south gold trend - the Huidong Property lies along a projection of this trend. Gold mineralization at Boka is hosted by a structural and stratigraphic geological setting similar to that of the Huidong Property. At Huidong, fault-controlled gold and copper mineralization, indicated by rock sampling of mineralized faults, strongly resembles Boka's multiple discovery zones. Furthermore, Southwestern Resources reports the "positive association between mineralization at the Boka Gold Project and gold-in-soil anomalies." Encouraging initial gold and copper geochemical analyses from soil and rock samples collected along mineralized faults at Huidong further strengthen the Boka comparison. Research analysts believe that the 25 km corridor hosting multiple zones of mineralization - the Boka Trend - has the potential to extend even further, thereby increasing the known area of mineralization into what may become a world-class gold mining district. This large area of multiple gold zones bodes well for Magnus. Gold deposits are not generally isolated occurrences. They tend to occur on faults that provide passageways for gold-rich fluids to move through the rocks and create ore bodies. That is why clusters of gold deposits often tend to occur along lines, or trends. The rock type cut by the ore-controlling faults often plays a role in producing an ore body. Certain rocks are more susceptible to being mineralized than others. The rocks at Boka and Huidong are similar. Successful Joint Venture Partner Magnus' joint venture partner, Team 209, is officially known as Yunnan Province Nuclear Industry Brigade 209. Team 209 has about 1,000 employees, including more than 200 geologists and engineers. This group of experienced government geologists was instrumental in the rapid development of the Boka Gold Project. The joint ventures between Team 209 and Magnus will apply 209's proven expertise and local knowledge in the exploration and development of the Huidong, Luquan, Qilian and Xintaizi properties. Magnus and Team 209 have a strong working relationship and have agreed to cooperate on future properties together. Huidong Exploration Program Magnus and Team 209 are conducting a comprehensive gold and copper exploration program on the Huidong property under the expert direction of AMEC AMEC African Methodist Episcopal Church AMEC Agent Mediated Electronic Commerce AMEC Arctic Military Environmental Cooperation AMEC Advanced Micro-Fabrication Equipment Inc AMEC Association of Media Evaluation Companies , a leading global provider of mining expertise and services. The goal of the program is to define the extent of the gold and copper anomalies in the area. The program is well underway. It includes a two-stage geochemical soil and rock sampling program, geological mapping and surveying to define targets for follow-up trenching, tunneling, and drilling. Also, there are at least 65 small-scale peasant mining tunnels throughout Huidong. These tunnels will be used to generate significant rock sample analysis. The Huidong exploration strategies are the same as those used at Boka. Magnus is also using satellite imagery Satellite imagery consists of photographs of Earth or other planets made from artificial satellites. History The first satellite photographs of Earth were made August 14, 1959 by the US satellite Explorer 6. to attempt to identify high-grade mineralized structures and zones by comparing the Huidong property with images of the gold mineralization zones at Boka. This imagery aids in mapping fault patterns and identifying key zones of gold and copper-related hydrothermal hydrothermal, hydrothermic relating to the temperature effects of water, as in hot baths. alteration at both Boka and Huidong. It is anticipated that geophysical surveys Geophysical survey refers to the systematic collection of geophysical data for spatial studies. Geophysical surveys may use a great variety of sensing instruments, and data may be collected from above or below the Earth's surface or from aerial or marine platforms. may also be employed. Property-wide soil and rock sampling has been conducted, comprising more than 7,500 samples on a 50m x 250m grid (high-density program) and 2,500 samples on a 100m x 750m grid (low-density program). All of the samples were prepared for analysis at the Yunnan Province Central Laboratory (YPCL) in Kunming, China. YPCL has been inspected by AMEC and is also used by Southwestern Resources. The high-density program is initially being analyzed at the YPCL lab for gold, copper, and three other elements. The low-density program has been analyzed for 36 elements at ACME Analytical labs in Vancouver, BC. Magnus expects to report preliminary results, including potential anomalous gold trends or patterns, in early March 2005. At least 3,000 cubic meters Noun 1. cubic meter - a metric unit of volume or capacity equal to 1000 liters cubic metre, kiloliter, kilolitre metric capacity unit - a capacity unit defined in metric terms of trenches will be constructed across the best soil geochemical anomalies to obtain better rock exposures for sampling and more detailed mapping. Gold zones further defined by trenching and rock sampling will be targeted for drilling in 2005. Tunneling in less accessible areas will further define and sample gold mineralized zones. Team 209 has recently purchased two new western-manufactured drill rigs, and has indicated that it will make them available for use at the Huidong property. AMEC Brings Global Mining Expertise Magnus has retained AMEC as a project consultant to guide its exploration programs. AMEC is one of the leading mining engineering firms in the world. AMEC has provided front-end services to virtually all of the world's major mine developers and operators, as well as mid-sized mining companies, "juniors" and lending institutions Noun 1. lending institution - a financial institution that makes loans financial institution, financial organisation, financial organization - an institution (public or private) that collects funds (from the public or other institutions) and invests them in . Front-end services include ore reserves, geological modeling, mine planning design, geotechnical services, and feasibility studies. The parent company of AMEC's mining group is an international project management and engineering services company that employs 45,000 people in more than 40 countries. With more than 50 years of experience in meeting the needs of the mining industry, AMEC is providing Magnus and Team 209 with expert guidance and support through a core team of professionals. In the last 10 years alone, AMEC has provided services on more than 1,000 mining and metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. projects in nearly 70 countries. As an example, AMEC was recently awarded the contract for the option studies, pre-feasibility study and detailed feasibility study of Ivanhoe Mines' Oyu Tolgoi porphyry Porphyry, Greek scholar Porphyry (pôr`fĭrē), c.232–c.304, Greek scholar and Neoplatonic philosopher. He studied rhetoric under Cassius Longinus and philosophy under Plotinus. copper-gold-molybdenum mine in Mongolia. Other Magnus Properties - 44.02 sq. km Luquan property in Yunnan province is located 40 km west of Boka and 30 km southwest of Huidong. The terrain is similar to that of the Huidong and Boka Projects. - 3 sq. km Xintaizi property is located in Kangding County Kangding or Dardo (Chinese: 康定, Pinyin: Kāngdìng; Tibetan in official transcription: Dardo or Darzêdo, in Wylie transliteration: dar mdo or dar rtse mdo in northern Sichuan province. Magnus is in the process of acquiring the gold mining license for the property. Initial rock samples taken by Team 209 from existing small-scale mining tunnels are extremely encouraging. Magnus plans to initiate a comprehensive work program in the near future. - 200 sq. km Qilian property is located in an under-explored, richly mineralized region of Qinghai province in western China, which has only recently been opened for exploration. Small-scale mining has indicated the presence of high-grade copper and favorable gold values in tunnel complexes. There is abundant placer gold mining along the streams and rivers draining the area. Modern Day Gold Rush in China China is the world's fourth largest gold producer, with an annual output of approximately 175 tonnes in 2002. But there remains considerable potential for untapped mineral wealth because most of the country has yet to be systematically explored using modern exploration techniques. A booming economy, liberalized business regulations, and an aggressive pursuit of foreign investment have set the stage for a modern day gold rush in China. Industry leaders such as Placer Dome Placer Dome was a large mining company specializing in gold and other precious metals, with corporate headquarters in Vancouver, British Columbia, Canada. Barrick has acquired 100% of the Placer Dome shares on January 20, 2006, and has integrated the company into its own. and Barrick Gold Barrick Gold Corporation TSX: ABX NYSE: ABX is the largest pure gold mining company in the world, with its headquarters in Toronto, Ontario, Canada; and four regional business units (RBU's) located in Australia, Africa, North America and South America. have already invested there. Ambitious junior mining companies - such as Magnus - are also taking advantage of this rare opportunity to attempt to replicate Southwestern's success at Boka in an attempt to discover a multi-million ounce gold deposit. Several factors are attracting foreign mining firms to invest in China now. These include: - granting of irrevocable exclusive mining rights to foreign companies with permission to transfer mining rights to other foreign companies - China's need of capital and technology transfer from the west to develop its domestic metal supply - equal access guarantees to foreign mining companies to extensive government geological data - China's membership in the World Trade Organization, which subjects it to sanctions for any unjust discrimination against foreign mining companies - establishment of a domestic market in Shanghai for gold sales at close to world spot prices - government deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. and the emergence of a vibrant mining private sector For further information please refer to the Company's filings with the SEC on EDGAR Edgar or Eadgar (both: ĕd`gər), 943?–975, king of the English (959–75), son of Edmund, king of Wessex. In 957 the Mercians and Northumbrians rebelled against Edgar's brother Edwy and chose Edgar as their king. or refer to Magnus' website at www.magnusresources.com. If you would like to receive regular updates on Magnus please send your email request to info@magnusresources.com. FORWARD LOOKING STATEMENTS This document may include "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " regarding Magnus International Resources, Inc., and its subsidiaries, business and project plans. Such forward looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. created by such sections. Where Magnus expresses or implies an expectation or belief as to future events or results, such expectation or belief is believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to price volatility of gold and other metals; currency fluctuations; political, operational, and governmental approval and regulation risks in China. For a more detailed discussion of such risks and other factors, please see "Risk Factors" in our Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for our most recently completed fiscal year, on file with the SEC at www.sec.gov. This document also contains information about adjacent properties on which Magnus has no rights to explore or mine. Investors are cautioned that mineral deposits on adjacent properties are not necessarily indicative of mineral deposits on Magnus' properties. Magnus International Resources Inc. (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :MGNU) |
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