Amanta Resources Ltd.
TSX VENTURE : AMH

Amanta Resources Ltd.

November 07, 2006 13:51 ET

Amanta's Lanna Tungsten Project Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 7, 2006) - Amanta Resources Ltd. (the Company) (TSX VENTURE:AMH) now holds 100% interests in two former tungsten producers in northern Thailand, Mae Lama, and Doi Ngom, and has also filed applications for Special Prospecting Licences (SPLs) covering an area previously licenced to another former tungsten producer, at Mae Chedi. Due to the relatively close proximity of these properties the Company views them as elements of a single project, now known as the Lanna Tungsten Project. The Company continues to explore additional opportunities to acquire other former tungsten producers in northern Thailand to add to this project. An initial drilling program is nearing completion at the Doi Ngom property and drilling will commence shortly at Mae Lama.

Mae Lama

Further to the News Release dated June 8, 2006, the Company has now signed the definitive Agreement with Saha Bhanasit Co., Ltd, owner and operator of the former Mae Lama tungsten mine in northern Thailand. The Company has also made the initial payment of Baht 2.5 million (approximately CAD$75,000) to Saha Bhanasit.

The Company will immediately commence an initial reconnaissance program at the property. This program will include sampling of previous workings, geological mapping of the licence area and trenching across the vein structures. Upon completion of the current drilling activity at the Company's Doi Ngom property, Amanta proposes to drill a set of reconnaissance holes at Mae Lama, prior to relocating the drill rig to complete the initial (up to 5,000 metres) drilling program at the Langu gold property in southern Thailand.

The Mae Lama mine is located in northern Thailand, approximately 80 km west of Chiang Mai. Mae Lama was one of Thailand's more significant tungsten mines, producing several hundred tons of high-grade concentrate per year. Production came from one major vein, averaging one to two metres thick, exposed over some 500 metres and extending over 150 metres in depth. This main vein was mineralized with wolframite and minor scheelite and associated tin and copper minerals. No systematic exploration for additional resources beyond the main vein was ever undertaken but old reports prepared by the Department of Mineral Resources indicate that additional smaller veins and veinlets occur; these have yet to be sampled and evaluated.

As with other Thai tungsten producers, mining at Mae Lama was limited to production from high-grade material. The tungsten ore grade in the vein was reported to range up to 10%, with wolframite the main ore mineral. The mine ceased production in the early 1980s, due to market conditions.

Doi Ngom

The Company is nearing completion of its initial drilling program at the Doi Ngom tungsten property in northern Thailand. This program is designed to provide information regarding the geological structure of the mineralised breccia deposit and its contacts with the country rocks, to assist in planning an initial resource drilling program. Structurally, the breccia appears to be a tabular body of silicified brecciated material with intercalations of acid tuffs, mudstones and sandstone, rather than a sub-vertical pipe. The average depth to the granite contact is generally 50 metres with a maximum depth of 75 metres.

Eight drill holes have been completed to date and a further two holes are planned. Due to the fractured nature of the brecciated material, drilling has been slower than expected and drill core recoveries lower than anticipated. Drill samples have been sent to Lakefield Laboratories, in Ontario, for assay and the Company expects that results will be available shortly.

Geological Information contained within this report has been verified by Pieter Bakker (Director, Executive VP - Amanta Resources Ltd.). Mr. Bakker satisfies the requirements of a Qualified Person as defined in the National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

Amanta Resources Ltd. is focused on mineral exploration, development and production in Thailand and the Southeast Asian region. The Company concentrates on the systematic evaluation of known mineral occurrences, rather than "greenfields" exploration, creating early opportunities to finance and develop mines.

ON BEHALF OF THE BOARD OF AMANTA RESOURCES LTD.

Gerald D. Wright, President


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this News Release.

Contact Information