SOURCE: Empire Energy Corporation International

December 01, 2005 11:02 ET

Empire & Zeehan Zinc Ltd Announce Independent Median Valuation of A$151 Million (USD $111 Million) and Estimation of the Current in Ground Gross Resource Value at A$1.36 Billion (USD $1.01


LENEXA, KS -- (MARKET WIRE) -- December 1, 2005 -- Malcolm Bendall, President of Empire Energy Corporation International (Empire) (OTC BB: EEGC) today announced that Anderson & Schwab Australia Limited has determined a business value for Zeehan Zinc Ltd (ZZ) to lie within the range A$112.4 Million (USD $83 Million) to A$190.1 Million (USD $140 Million) by substantial geological and financial modeling of the business. Mr Bendall said, “We have assessed the gross value of the in ground resource held by ZZ to be A$1.36 Billion (USD $1.01 Billion) based on current metal prices and exchange rates.” ZZ is a mining company in western Tasmania, Australia in which Empire, through a subsidiary, has a 37.5% ownership interest.

The Independent Valuation and Assessment of the Mineral Assets of Zeehan Zinc Limited was prepared by Anderson & Schwab Australia Limited, a well-known and respected International USA based mine evaluation and valuation firm. The ore is all classified as ‘near to production’ and exploration asset values have been determined by calculation of Net Present Value/Discounted Cash Flows and Exploration Expenditure Multiplier methods and are in accord with industry standards for valuing mineral assets.

The report confirms, based on current London Metal Exchange prices and currency exchange rates and the ore resource as now defined to the Australian Joint Ore Reserves Committee (JORC) standards, that the deposits should be economic to mine and sufficient to meet the requirements of the company’s existing permits. Mining operations are intended to commence during 2006 subject to funding, completion of a flotation plant and the review of mining and environmental permits. Currently there are 3,300 tonnes of hand sorted ore stockpiled on site that have been mined and are ready for processing or sale. An independent consultant has reported a measured and inferred resource totaling 6,765,670 tonnes of ore, as set out in the JORC code, containing grades of 5.2% Lead (Pb), 4.8% Zinc (Zn) and 52 grams/tonne of Silver (Ag). Based on an expected maximum modeled production rate of up to 400,000 tonnes of ore per annum, the mines should see at least 10 years of production.

Mr. Bendall said, “The Anderson & Schwab Report clearly demonstrates our belief that an economic resource exists at the Comstock and Oceana Mines and shows the potential at current metal prices and exchange rates of high returns from the venture. The 6.7 million tonne resource estimate indicates the potential for a 400,000 tonne annual output and mine longevities beyond the 10 year horizon. We believe the 37.5 percent investment in ZZ has been validated and should result in a significant return and benefit for Empire shareholders. The price of the metals is continuing to rise and world demand is increasing. The independent appraisal of this solid asset is anticipated to accelerate the move forward toward financing the business plans of the company.”

This Press Release contained forward-looking statements based on our current expectations about our company and our industry. You can identify these forward-looking statements when you see us using the words such as “expect,” “anticipate,” “estimate,” “ believes,” “plans” and other similar expressions. These forward-looking statements involve risks an uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of our ability to complete required financings and other preconditions to the completion of the transactions described herein and Empire’s ability to successfully acquire reserves and produce its resources among other issues. We undertake no obligation to publicly update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future. We caution you not to place undue reliance on those statements.

Contact Information

  • For more information contact
    Malcolm Bendall
    Renner Business Center
    16801 West 116th Street
    Lenexa, KS 66219-9603