VVC Exploration Corporation

VVC Exploration Corporation

February 07, 2008 09:24 ET

VVC Exploration - Beaver Brook Antimony Mine Starts Production

TORONTO, ONTARIO--(Marketwire - Feb. 7, 2008) - VVC EXPLORATION CORPORATION (TSX VENTURE:VVC)(FRANKFURT:V7S)(BERLIN:V7S) ("VVC" or the "Company") is pleased to report that the Beaver Brook Antimony Mine Inc. ("BBAM") has obtained all the necessary provincial permits and approvals for production of its antimony mine located near Gander, Newfoundland and has commenced the process of restarting production of antimony concentrate for industrial markets. BBAM expects to have the underground mine up and running within three months. BBAM has already filed the required development, rehabilitation and closure plans with the appropriate provincial ministries. VVC owns 10% of the shares of BBAM.

"This development is great news for the communities and residents of central Newfoundland," said the Honourable Kathy Dunderdale, Minister of Natural Resources of Newfoundland. "This operation could employ up to 90 people over the next seven to 10 years and will also generate important economic activity for the businesses in the region that will provide supplies and services to the mine and the people it employs."

The Beaver Brook Mine, located in central Newfoundland approximately 60 kilometres southwest of Gander, is the only operating antimony mine in North America and is also one of the world's largest undeveloped antimony deposits outside of China and South Africa. Once in full production, the Mine could supply nearly up to 5% of world's annual demand and its neighbouring country, the United States is one of the world's largest consumer of antimony.

A 450 ton per day mill is erected on the mine site and all equipments and others facilities are up and running. Mine rehabilitation and development have been completed, the 15% production ramp and 313 meters of drifts are ready for the extraction of ore.

Antimony trioxide is the most important of the antimony compounds and is primarily used in flame-retardant formulations. These flame-retardant applications are used in plastics, vinyls and synthetic fibres and specifically such markets as clothing, toys, aircraft and automobile interiors. Antimony metal's most important use is hardener in lead for storage batteries. The metal also finds applications in solders and other alloys.

Over the past year, antimony has fluctuated between US $5,100 and $5,600 per tonne. Published prices are currently in the US $5,500 to $6,000 per tonne range and global demand is expected to grow at approximately 3.5% per year.

"Timing could not be better." says M. Bert Bourgoin, President of BBAM and world renowned geologist and antimony specialist. "The price of antimony is at is all time high, with great manpower readily available and world demand still growing, we are delighted to finally restart production in 2008. We are extremely proud of this project which should result in the creation of at least 90 fulltime jobs at the mine site."

About VVC:

VVC Exploration Corporation is a Canadian exploration company with projects in the Timmins Area, Ontario, Canada. VVC also has an indirect participation in the Beaver Brook Antimony Mine in Newfoundland, Canada. VVC is also aggressively searching for other projects such as Gold, Base metal, Uranium and Antimony at various stages of development. Visit our website at www.vvcexploration.com.

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

On Behalf of the Board of Directors

Michel J. Lafrance, Secretary-Treasurer

Contact Information

  • VVC Exploration Corporation
    Charles Descary, Manager
    Investor Relations
    (514) 631-2727 or 1-877-558-2727 ext 222