SOURCE: Empire Energy Corporation International

April 07, 2006 08:00 ET

Zeehan Zinc Attains Market Valuation of USD $208 Million

LENEXA, KS -- (MARKET WIRE) -- April 7, 2006 -- The board of Empire Energy Corporation International ("Empire") (OTC BB: EEGC) reported that Zeehan Zinc Ltd (Zeehan), a Hobart, Tasmania-based mineral explorer and mining company, has released a market valuation of its tenements in Western Tasmania, Australia. Empire, through a wholly owned subsidiary, acquired a 37.5% ownership interest in Zeehan in 2005. Anderson & Schwab, a leading mining valuation firm located at 444 Madison Avenue in New York, prepared the in-depth analysis.

Dr. Clive Burrett, former professor of geology at the University of Tasmania and currently Managing Director of Zeehan, stated, "The Anderson & Schwab report determined a current market value of our Zeehan ore deposits of US$208 Million (AU$291 Million) based on total Joint Ore Reserves Committee (JORC) compliant resources of 6.89 million tonnes. These values are based on historically high price levels for Silver (US$12.00 per ounce), Zinc (US$2,800 per tonne) and Lead (US$1,140 per tonne). The company also has applied for three additional mining leases near Zeehan. The prospects for those mine sites, one of which is located to the west of our main Comstock mine and two to the south and east of Zeehan (Oceana and Mariposa), are excellent with (JORC) compliant resources of over two million tonnes of Silver, Lead and Zinc ore of which about 665,000 tonnes are in the JORC compliant indicated resource category. We have used over 40 professional consultants in our planning, including archaeologists, botanists, chemists, geologists, geophysicists, metallurgists and mining engineers."

Dr. Burrett went on to say, "We are aggressively proceeding with our exploration and development program and have up to two drill rigs currently upgrading and defining the resources at the Comstock Mine, which is located west of the township of Zeehan, Tasmania and at the Oceana and Mariposa mines located south of Zeehan. We are well advanced in our planning for a flotation plant at our Comstock mine site that will also produce internationally saleable concentrates of Zinc and Silver/Lead. Currently we are nearing completion of the 400,000 tonnes per annum milling and gravity plant on the Comstock mine site, pictures of which can be seen on the Zeehan web site at www.zeehanzinc.com. An extensive geophysical survey is well underway on and around our mine sites and we expect this to pick up several new lodes that will need to be tested by drilling. In order to continue mining the 98,881 tonne reserve at Allison's Lode, (which we estimate to contain AU$17 Million in metal value), we have to obtain government permission to re-align part of the Trial Harbour Road."

Malcolm Bendall, President of Empire and Director of Zeehan, said, "In the next few months the company expects to drill on all of the mining leases, mining lease applications and exploration licenses to define resources sufficient to keep our gravity mill busy for many decades to come. Our mines, when final approvals by the state government are forthcoming, should provide at least 100 jobs directly on the west coast and additional jobs in Tasmania. Our expected 400,000 tonnes per annum production should have an annual contained gross metal value of US$88 Million, (AU$121 Million) which is expected to yield an EBITDA in excess of US$45 Million (AU$60 Million). Zeehan is preparing to be listed on the London AIMS market and expects to complete the listing process during the second quarter of 2006."

This Press Release contains 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
    President
    913-469-5615
    Renner Business Center
    16801 West 116th Street
    Lenexa, KS 66219-9603