CALGARY, Alberta, June 4, 2003 (PRIMEZONE) -- Leader Mining International Inc. management is pleased to report ongoing advancement of the Cogburn Magnesium Project located near Hope, British Columbia, Canada.
Production Feasibility Study
On May 7th 2003 the Company received a positive Production Feasibility Study for the Project from Hatch Associates Ltd., one of the premier light-metal full-service engineering firms in the world. See the Hatch Website at: www.hatch.ca. The Feasibility Study concluded that the Cogburn Magnesium Project is technically feasible, economically viable and has the potential to be a world-class, environmentally friendly, long-life magnesium operation. The Feasibility Study Summary is posted on: www.leadermining.com and www.sedar.com.
Process Technology
On May 16, 2002 Leader Mining signed a Technology Transfer Agreement with the State Research and Design Titanium Institute of Zaprozhye, Ukraine (STI) and the joint stock company 'VAMI' of St. Petersburg, Russia to transfer technology related to the key process areas for the Cogburn Magnesium Project. The STI/VAMI technology for production of magnesium metal is a commercially proven technology recommended by HATCH Associates Ltd., as the world's leading magnesium reduction technology, in their October 2001 Cogburn Scoping Study. Under the agreement, Leader Mining received technology information and assistance in pilot-scale testing magnesium metal recovery from Cogburn magnesium silicate samples. The agreement between Leader Mining and STI/VAMI provides for Leader Mining to acquire a STI/VAMI technology license for the Cogburn Magnesium Project and includes technology performance guarantees by STI/VAMI.
Environmental and Permitting
The Company submitted a draft Project Application to the British Columbia Environmental Assessment Office (BCEAO) in mid 2002. Comments on the draft application from provincial and federal government agencies guided studies and activities conducted over the past year, the outcomes to be contained in a formal Application.
The Company is currently in the process of acquiring private lands in the vicinity of the proposed Project. On completion of land acquisition, the Company will submit the formal Application to the BCEAO for review and approval.
Agreement with Local First Nations
The Company has held discussions with First Nations in the vicinity of the Project over the course of the past year and is now ready to commence formal negotiations on a long-term joint venture operating contract for quarrying, ore transportation and residue management. It is proposed that Emil Anderson Construction Co. Ltd., based in Hope, BC, will be a 50% participant in the joint venture with local participating First Nations owning the other 50%. (See Emil Anderson's Website at: www.eac.bc.ca). Of significance, the collaboration is one of the first formal joint ventures with First Nations on a major mining project in British Columbia.
Marketing and Off-Take Contracts
A marketing study completed by Hatch Associates Ltd., as a part of the Feasibility Study, indicates a potential production rate of up to 150,000 metric tons per year of magnesium and magnesium alloys (Base Case: 131,000mtpy). Marketing advantages for the Project include its large deposit size (long-life), location in a politically stable jurisdiction, extensive existing infrastructure, and its proximity to the large North American magnesium consuming auto industry.
With the positive Feasibility Study, the Company is now aggressively following up its 2002 contacts with the automobile industry, to pursue long-term off-take contracts.
Pursuing Major Participants to Develop the Project
With the positive results of the Feasibility Study, discussions are now entering a more aggressive phase with potential major financial and operating partners for development of the US$1.24 billion Project.
The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.