MPAC Industries Corporation

MPAC Industries Corporation

August 05, 2008 12:27 ET

MPAC Industries Corporation: Coal Plant Update and Next Steps

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 5, 2008) - MPAC Industries Corporation (TSX VENTURE:MPN) ("MPAC" or the "Company") is pleased to provide its shareholders and the investment community with an update regarding the coal refining pilot plant (the "Plant") located in the City of Soma in Turkey and the next steps the Company envisions.

The Company retained the services of engineers and technicians in Turkey to address the screening problems encountered at the Plant (see MPAC News Release dated June 25, 2008). To that end, various prototype screens were considered for their appropriateness and effectiveness with the Soma coal. Having taken the various alternatives into consideration, a prototype screen (the "Screen") capable of processing two (2) tonnes per hour ("TPH") was commissioned, built and tested.

The tests were conducted in the presence of a third party (the "Third Party") who is interested in collaborating with the Company in its coal-refining venture in Turkey.

The refined coal (the "Refined Coal") samples ("Sample(s)") were cut into two equal parts. The Third Party taking one part to obtain its own independent test results, while the balance of the Sample was delivered to the Turkish Cement Producer's Association ("TCMB") to test and certify the results for MPAC.

The Third Party delivered its set of Samples to the Mineral Research and Exploration organization ("MTA") in Turkey.

Both of these testing facilities certifying the tests are considered to be of the highest reputation in Turkey.

The Company, to further scrutinize the performance of the Screen, also took additional Samples of the Refined Coal once it had passed through the Screen.

These Samples were also delivered to the TCMB for the certification of their calorific value and the Screen's performance with respect to its ability to handle the ash/clay contained in the Soma coal.

With the advice of the technicians and engineers, additional prepping stages of the ROM coal and the Refined Coal were also added to the coal refining process.

MPAC is pleased to report that the test results received from both the TCMB and the MTA suggest that the Screen has performed as, or better than expected.

The Soma coal had an ash component of 37.74% to 40.68% and Kcal value in a range of 2,946 to 3,221. This coal was processed through the refining component using the existing crushing circuit without any modification to the original screen. The test results of this process show that the coal was upgraded to approximately 3,900 Kcal by reducing the ash/clay component to 30%.

The Refined Coal was then passed once more through the coal refining process BUT NOT THROUGH THE SCREEN. The Refined Coal (according to the TCMB test results) was upgraded to a range of 5,080 to 5,292 Kcal. The Ash component dropped to 20.58% from approximately 30%.

The Refined Coal was then passed through the Screen ONLY to determine the efficiency of how the ash/clay component was being addressed by the Screen. The test results indicate that the Screen's behaviour was within performance expectations and even better than expected. The ash/clay component dropped to 13.44% and the Kcal increased to a range of 6,407 to 6,616 Kcal. This is by far the best result the Company has obtained either from the bench tests or Plant tests since the inception of the project.

The test results from the MTA, who tested the Refined Coal and the product coming out of the Screen, are in line, and confirm the TCMB results. The MTA certified that the ROM coal (37.74% to 40.68% ash/clay had a Kcal range of 2,900 to 3,221). After passing through the coal refining process and then through the Screen, the coal had an ash/clay value of 11.38% to 14.20% and Kcal value range of approximately 5,100 to 6,383. Two additional samples tested by MTA of the same coal sample also confirm a range of 5,692 to 6,243 Kcal and 5,119 to 6,383 Kcal respectively with the ash/clay component falling to a range of 15.48% to16.98% and 10.93% to 13.99% respectively.

The resultant ranges reported are a function of the quantity of moisture in the Sample.

The Company is very satisfied with these test results as they further establish the integrity of the project. The behaviour of the test Screen on the Soma coal is suggesting that the resolution to the harmonization of the Plant is close at hand.

It should also be noted that MPAC's Agreement to refine the Soma coal calls for a refining fee that is predicated upon the degree of the refinement. Up until now, the Company had been setting its refinement target to be in a range of 4,500 to 5,500 Kcal. From the recent test results obtained, it would appear that a higher refinement target fee might well be now achievable. In such an event, the refining fee the Company would receive for producing 6,001 to 6,500 Kcals would be USD $55.00 per tonne and anything over 6,500 Kcals would warrant a fee of USD $60.00 per tonne.

In light of these tests, the Third Party is anxious to meet with Senior Executives of the Company to enter into negotiations with a goal of working with the Company in collaboration with this and other coal refining plants in Turkey using MPAC's method of coal refining.

With the test results in hand, an Executive Director is leaving for Turkey later this week to view first-hand the performance of the Screen and, if warranted, an order will be placed to retrofit one or more of these new Screens into the Plant. The Screens would then be retrofitted into the existing Plant infrastructure and tested before proceeding to commercial production. The manufacturer of the Screen has verbally indicated he will guarantee a MINIMUM agreed upon production capacity for any order(s) placed for the Screen(s).

The Executive Director will also meet with the Third Party to further explore common ground for any collaboration, as well as make site visits to Turkish manufacturers of mineral processing equipment with a view to planning for the future enhancement and expansion of the Company's endeavours in Turkey.

That Executive Director's trip will be immediately followed up with another Director traveling to Turkey and meeting with the Turkish manufacturer of the turnkey infrastructure at the Plant to resolve the non-performance of their screen and dewatering components; entering into negotiations to acquire additional coal resources; and exploring other opportunities in the coal sector in Turkey for MPAC.

As always, the Company very much appreciates the ongoing patience and support of its shareholders as it progresses from a conceptual academic visionary to a fullscale coal-refining producer.


J, RICHARD W. HALL, President & CEO

This News Release contains forward-looking statements, which are based on MPAC Industries Corporation current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. The forward-looking statements are not guarantees of future performances and undue reliance should not be placed on them. Actual results may differ materially as a result of any number of factors and uncertainties, many of which factors are beyond the Company's control. MPAC Industries Corporation undertakes no obligation to revise any forward-looking statements except as required by applicable securities laws.

The TSX Venture Exchange neither approved nor disapproved the contents of this news release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this News Release.

Contact Information

  • MPAC Industries Corporation
    Firoz Lakhani
    (604) 551-7697