Weda Bay Minerals Inc.

Weda Bay Minerals Inc.

October 19, 2005 08:42 ET

Weda Bay Minerals Reports on Preparations for Definitive Feasibility Study at the Halmahera Nickel/Cobalt Project

TORONTO, ONTARIO--(CCNMatthews - Oct. 19, 2005) -

Drilling expected to expand the Halmahera resource to plus 500 million tonnes

The Board of Directors of Weda Bay Minerals Inc. (TSX:WDA) has reconfirmed its intention to move the Halmahera Project rapidly towards a Decision to Build. In light of this, the Company has decided to fast-track preparations for the commencement of a Definitive Feasibility Study on the Halmahera Nickel/Cobalt Project. 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.

In preparation for the Definitive Feasibility Study, the Company will:

-Update the 2002 Pre-feasibility Study conducted by the Kvaerner Hatch JV to include the results of the 2004 Scoping Study, which incorporated an integrated flow-sheet to process limonite and saprolite ores from the Phase 1 Santa Monica deposit.

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

- Conduct expanded bench scale metallurgical testing on the Santa Monica ores.

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

- Complete baseline environmental and social studies.

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

In addition to the above preparatory work for the Definitive Feasibility Study, the Company also intends conducting 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.

Commenting, 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 155 million tonnes grading 1.45% Ni and 0.09% Co of measured and indicated resources plus 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.
    Mr. Patrick Evans
    President and CEO
    (416) 603-0591
    (416) 367-3638 (FAX)
    Weda Bay Minerals Inc.
    Mr. Ian Shaw
    Investor Relations
    (416) 603-0591
    (416) 367-3638 (FAX)