Weda Bay Minerals Inc.

Weda Bay Minerals Inc.

November 10, 2005 10:03 ET

Weda Bay Minerals Awards Pre-Feasibility Update Contract to Aker-Kvaerner

TORONTO, ONTARIO--(CCNMatthews - Nov. 10, 2005) -

Drilling expected to expand the Halmahera nickel/cobalt resource to 500 million tonnes plus

Weda Bay Minerals Inc. (TSX:WDA) announced today that a contract to update the 2002 Pre Feasibility Study has been awarded to Aker-Kvaerner Australia Pty Ltd. Work on the update has now commenced. This is an integral part of the Company's plan to move the high grade Halmahera Nickel/Cobalt Project rapidly towards a Decision to Build, and is the first step in preparations for the commencement of a Definitive Feasibility Study.

This decision follows the successful completion of a $12 million private placement on September 12, 2005, and the termination of the OM Group Product Supply Agreement on September 23, 2005.

Other key components of the current work program include:

- An in-fill drilling program at the Santa Monica deposit to bring 40 million tonnes of resources into the Measured Category.

- Expanded bench scale metallurgical testing on the Santa Monica ores.

- Evaluation of a land-based tailings storage option to a Pre-feasibility Study level of confidence.

- Completion of baseline environmental and social studies.

Based on current forecasts, the update of the Pre-feasibility Study will be completed in early 2006. The remainder of the work program will be completed in mid-2006.

In addition to the above preparatory work for the Definitive Feasibility Study, the Company is also preparing for a wide-spaced drilling campaign over those portions of the Halmahera Project where nickel/cobalt laterite has been mapped but has yet to be drilled. This campaign is expected to increase the size of the Halmahera resource from its current 278 million tonnes to over 500 million tonnes, which would result in the Halmahera Project being the largest known undeveloped nickel/cobalt laterite deposit globally.

Weda Bay President and CEO Patrick Evans said: "Our exploration, pre-feasibility and scoping studies have yielded excellent results, confirming that the Halmahera Project is one of the largest high grade nickel/cobalt laterite deposits globally. The work program over the next few months will lay the foundation for Weda Bay to commission a Definitive Feasibility Study by mid-2006. It is apparent that the Halmahera Project is starting to live up to its considerable potential."

Weda Bay Minerals Inc. (WDA) is an exploration and development company that controls the Halmahera Nickel Cobalt Project which is globally one of the largest undeveloped nickel projects. The project resources are: 16 million tonnes grading 1.27% Ni and 0.18% Co of measured resources; 139 million tonnes grading 1.47% Ni and 0.08% Co of indicated resources; and 123 million tonnes grading 1.53% Ni and 0.08% Co of inferred resource. Resource estimates are at a cutoff grade of 1.0% Ni. The Company has completed an independent Pre Feasibility Study which concludes that the Halmahera project is highly viable.

NOTE: Certain statements contained herein are "forward-looking" and are based on the opinions and estimates of management, or on the opinions and estimates provided to and accepted by management. These opinions and estimates include those that relate to all the geological, development, mining and commodity price and market parameters used by management. Forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ, possibly significantly. Readers are therefore cautioned not to place undue reliance on any forward-looking statement.

Shares Issued and Outstanding: 52,937,535.

Contact Information

  • Weda Bay Minerals Inc.
    Patrick Evans
    President and CEO
    (416) 670-5114
    BarnesMcInerney Inc.
    Capital Market Communications
    Tanis Robinson
    Senior Account Executive
    (416) 367-5000 ext. 252