• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Pearl Asian Mining Signed an Agreement With a Cooperative to Develop, Explore, and Mine Gold

Posted on: Tuesday, 27 February 2007, 09:00 CST

Pearl Asian Mining Industries, Inc. with Stock SYMBOLS: U.S.A. (OTC:PAIM); Germany (GER:R1Z) and (FWB:R1Z) announces that today, it has signed an agreement to develop, explore, and mine for gold at the Gango Gold Rush Site at Libona, Bukidnon, some 17 Km (11 Miles) south of Cagayan de Oro City. The agreement was recently reached with the Orogano Producers Cooperative, covering a 58 hectare (143 Acre) portion of a district declared as a People's Small Scale Mining Area under Republic Act 7076, the Philippine Small Scale Mining Act. Ore samples obtained from the Gango area have yielded the following lab assay results from McPhar Geoservices (Phils.) Inc.:

Gold

Silver

Copper

Content, ppm

23 - 32 

12 - 17 

221 - 1,095 

The agreement covers an estimated 20 existing tunnels and a used mill plant (capacity: 20 MT ore/day) composed of a Jaw Crusher, Ball Mill, and Leaching Tank, which will be operational after minor reconditioning. President/COO & CRO for Mindanao Operations Manolo Tecson & Chief Metallurgist Elvis Hidalgo stated: "We believe in the excellent potential of the Gango Gold Rush Site, and expect to commence operations once all permit requirements are satisfied and heavy equipment are mobilized. We plan to employ the members of the cooperative and their families as miners. Furthermore, the existing mill plant on-site will facilitate an earlier start in commissioning and commercial operation of the mine."

Meanwhile, in the Central Philippine Island of Negros, Pearl Asian likewise entered into an agreement to extract high-grade manganese ore. The agreement, signed on February 25, 2007 with landowners of a 21-hectare (52 Acre) property in the town of Calatrava, Negros Occidental, approx. 300 miles (483 Km) south of Manila, covers the immediate extraction of up to 3,000 metric tons of high-grade manganese ore within 3 months. At the same time exploratory drilling will be conducted to have more precise ore reserves estimates and ascertain the presence of other minerals such as gold reportedly present in an adjacent property.

High-grade manganese ore (min. 44 % Manganese) used primarily in steel production, has no known substitute resulting in its high demand particularly in China and Japan, the two biggest manufacturers of steel worldwide. A Swedish mining company previously operated the mine in 1992 but abandoned the project due to political instability in the country then, and a study done by Geologist Jan Frostom for this Swedish company confirmed the presence of high grade manganese ore within the total claim area of 240 Hectares (593 Acres), with probable ore reserves estimated at around 583,200 metric tons. VP - Bus. Dev. & IRO Gary Gotanco, who witnessed the signing, stated: "An initial feasibility study by PAIM indicates that the sale of 3,000 metric tons high grade manganese ore would result in at least $300,000 in revenues and at least $ 90,000 net profit, equivalent to a 30 % net profit rate, in a 3-month period. In addition, if the results of exploratory drilling are favorable, PAIM and the landowners have an understanding to negotiate for a longer term joint venture agreement, for up to 20,000 metric tons manganese ore per year. The planned joint venture agreement would contribute around $2 Million USD in revenues and about $ 600,000 in net profit to PAIM's bottom line every year." PAIM hopes to commence operations within the month of March 2007.

"These projects mark the first positive outcome of PAIM's continuing aggressive exploration for new potentially lucrative mining prospects in the Philippines", exclaimed Chairman Pearl Asian.

FORWARD STATEMENTS;

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.

Source: Business Wire

More News in this Category