Asian Mineral Resources Limited

Asian Mineral Resources Limited

October 24, 2006 08:00 ET

Asian Mineral Resources Limited: Ban Phuc Nickel Project Progress Update

TORONTO, ONTARIO--(CCNMatthews - Oct. 24, 2006) - Asian Mineral Resources Limited ("ASN")(TSX VENTURE:ASN) today issued a report on the progress of the Ban Phuc Nickel Project ("Project") being undertaken by its 90% owned joint venture company, Ban Phuc Nickel Mines Limited ("BPNM").

Since completion of the independent feasibility study by Ausenco Limited and others in November 2005, a significant amount of effort has been made towards acquiring the required Vietnamese mining license. In parallel, other work has been undertaken to progress the Project, particularly where such efforts can contribute to a reduction in the implementation time once all requisite approvals are in place.

Work to date includes various geotechnical and soil sampling test drilling, initial architectural and structural designs, preparation site surveys, formulation of tendering documentation and advancing negotiations with off-take smelter groups and financiers.

Mining License

The issuance of a mining licence approving the development of the initial project is, as previously disclosed, a multi-step process that may also now include the requirement of a positive opinion from the Prime Minister's Office based on an overall strategic plan for nickel mining in Vietnam which is in the course of preparation.

On July 1st, a new Vietnamese environmental law was introduced however its related implementation guidelines were not enacted until early October. BPNM is pleased to report that it subsequently submitted its environmental impact assessment and management plan to the relevant authorities for their approval. These and other delays have resulted in ASN revising its anticipated mining license approval schedule late into the first quarter of 2007.

"The mining licence is critical to progress the Project and the potential for a timing mismatch in this approval process is always tricky to predict", said Mr David Woodhouse, President and CEO of ASN "but we continue to expect that the issue of the license can be achieved in a satisfactory timeframe."

Exploration Licence

As previously disclosed, BPNM applied in July 2005 for an extension to its exploration rights over the 150 km2 area defined in its Foreign Investment License issued by the Ministry of Planning and Investment ("MPI"). Jurisdictional uncertainties between MPI and the Ministry of Natural Resources and Environment in relation to this exploration extension are being discussed with these authorities.

Other Permits and Approvals

The development of the Project will also require the issue of other permits and approvals from various levels of government within Vietnam. The Company has determined that the majority of the material start-up construction approvals cannot be applied for until the mining license has been granted. Other permits and approvals associated with on-going operations will be progressively acquired during the construction and development phase.

Company Profile:

Asian Mineral Resources Limited is currently engaged in the exploration and development of the Vietnamese located Ban Phuc Nickel Project in which it now has a 90% interest. The Project is part of a granted Foreign Investment License covering 150 square kilometres of highly prospective ultramafic hosted nickel occurrences. The Company expects to receive its mining license by the end of March 2007 and is directing its Project implementation efforts accordingly.

Forward-Looking Statements:

This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Asian Mineral Resources Limited are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Asian Mineral Resources Limited's expectations are disclosed under the heading "Risk Factors" and elsewhere in Asian Mineral Resources Limited documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities.

Suite 780 / 144 Front Street West Suite 304B / 30 Nguyen Du Street
Toronto, Ontario, M5J-2L7, CANADA Hanoi, VIETNAM
Telephone: + 1 416 360 3412 Telephone: + 84 4 943 3462
Facsimile: + 1 416 362 6830 Facsimile: + 84 4 943 3460
Internet: Email:

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

Contact Information

  • Asian Mineral Resources Limited
    David Woodhouse
    President & CEO
    (416) 360-3412
    Grove Communications
    Kate Black
    (416) 360-3412
    (416) 362-6830 (FAX)