MONTREAL, Nov. 7, 2006 (PRIMEZONE) -- East Delta Resources Corp. (OTCBB:EDLT) (Frankfurt:EJK) announced today that Sino-Canadian Metals Inc., a subsidiary of EDLT, released positive due diligence results for the nickel-copper exploration property controlled by Sino Canadian under a letter of intent with Qinghai Hua Long Ding Shun Minerals Ltd of Qinghai Province, China. The letter of intent contains the framework to form a joint venture to develop the nickel-copper property, covering an area of approximately 17 square kilometers. The proposed joint venture agreement calls for Sino-Canadian Metals to initially deposit US$300,000 into the project in order to obtain 80% equity ownership, with further exploration and development expenditure of up to US$4.7 million within two years, subject to obtaining continuing positive results.
Sino Canadian sent a qualified independent geologist from the USA to investigate the property. There are currently six drill holes and three tunnels defining the known mineralization. The geologist took five representative channel samples from the tunnel walls, ranging from 50 to 100 feet from the tunnel entrances. One of the dominant minerals in the lens-like sulfide bodies sampled was pyrrhotite which was the magnetic polymorph. The magnetic quality of the mineralization helped to locate the sulfide bodies. Samples were sent to a qualified independent laboratory in Canada.
Results are as follows:
--------------------------------------------------------------------- Sample No. Ni % Cu % Ag % Co % --------------------------------------------------------------------- YQ06-1 1.67 .114 less than 0.001 0.075 --------------------------------------------------------------------- YQ06-2 0.063 0.008 less than 0.001 0.005 --------------------------------------------------------------------- YQ06-3 .270 0.085 less than 0.001 0.015 --------------------------------------------------------------------- YQ06-4 1.65 0.033 less than 0.001 0.074 --------------------------------------------------------------------- YQ06-5 1.54 0.224 less than 0.001 0.072 ---------------------------------------------------------------------
Victor Sun, President and CEO of Sino-Canadian Metals, stated: "This area has been well known to contain sizable mineral deposits for many years. These assay results confirm that there is excellent potential to discover an economic ore body with high potential for nickel production."
The property is located 160 kilometers southeast of Xining, the capital of Qinghai Province in northwest China. Infrastructure is good, with power available from the national grid, GPRS cell coverage, and ample workforce in the vicinity. Climate is conducive to year-round operation.
Exploration work will be focused on defining the continuity and extents of the ore body, the variation in grade throughout the zone, and the metallurgical characteristics of the mineralization. Subsequent work will determine the feasibility of the construction and operation of a mine and processing facility at the site.
Sino-Canadian Metals Inc. is a private Delaware corporation, headquartered in Montreal, Quebec and 63% owned by EDLT. It is the intent of Sino-Canadian Metals to become a publicly traded company in the U.S. within the next 12 months.
The Companies
East Delta Resources Corp. is a publicly traded Delaware corporation, headquartered in Montreal, Quebec whose primary activity is in mine development and production of gold. Through its majority owned subsidiary, Sino Canadian Metals Inc., it also participates in other mineral exploration and mining, specifically, silver, nickel, zinc and lead. The geographic focus of the Companies is China. With funding for current needs in place, majority interest in several highly-prospective properties, experienced personnel, and an extensive network of contacts in China, the Companies are on-track in implementing their business plans and objectives.
Safe Harbor
Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.