PGM Ventures Corporation

PGM Ventures Corporation

August 03, 2005 12:37 ET

Progress Report on PGM's Aguas Tenidas Project

TORONTO, ONTARIO--(CCNMatthews - Aug. 3, 2005) - PGM Ventures Corporation (TSX VENTURE:PPG) - PGM Ventures Corporation ("PGM") is pleased to provide the following progress report on its Aguas Tenidas project located in SW Spain:

1. Minas de Aguas Tenidas SA ("MATSA"), PGM's wholly owned Spanish subsidiary, has received notice from the Consejeria de Medio Ambiente of the government of Andalucia that a formal Environmental Impact Statement ("EIS") will not be required for the reopening of the Aguas Tenidas mine.

This welcome decision by the Spanish authorities should allow commercial production to be achieved earlier than if an EIS had been required. PGM's management believes this decision may have been influenced by Aguas Tenidas:

a) being located in an area of low population density and high unemployment,

b) having no underground aquifers, or being close to any major river systems,

c) having previously been in commercial production and therefore having a well-established infrastructure,

d) already having a modern water processing plant neutralising acidic mine water and removing dissolved metals,

e) undertaking to use the environmentally friendly method of paste tailings disposal, and

f) having no existing surface rock dumps or tailings dams.

2. Detailed reports are currently being prepared by PGM's independent engineering consultants for grant application and these will shortly be submitted to the relevant authorities. Aker Kvaerner's engineering services business is responsible for the design of the paste tailings facility and the 1.6m.tpy processing plant. SRK Consulting is producing the Aguas Tenidas feasibility study, expected in mid-September, and has overall responsibility for environmental matters and tailings disposal, both underground and on surface.

3. The newly constructed sample preparation laboratory at Aguas Tenidas has now been commissioned; this will result in considerable time and cost savings in assaying in the future and for the current 3,400 metre infill drilling program.

4. MATSA has arranged the following utility supplies on favourable terms for the Aguas Tenidas mine:

a) An electricity supply of up to 20MW from Sevilla Endesa, operators of the local national grid. Parts of the existing electricity supply line will have to be upgraded to carry the increased electrical load.

b) A 30 litre/second supply of water from the Cueva de la Mora dam, operated by the Ministerio de Medio Ambiente, located around 500 metres from the mine entrance road. Despite last winter's drought conditions in southern Spain, this dam was still overflowing at the end of April.

PGM is listed on the TSX Venture Exchange and has 68,924,585 shares issued and outstanding.

This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". All dollar amounts are in Canadian dollars unless otherwise noted.

The TSX Venture Exchange does not accept responsibility for the adequacy of accuracy of this release.

Contact Information

  • PGM Ventures Corporation
    Peter Miller
    (416) 815-8666
    PGM Ventures Corporation
    Norm Brewster
    (416) 815-8666