AMANTA RESOURCES LTD. EXERCISES DOI NGOM OPTION
March 1, 2005
Amanta Resources Ltd. (the “Company”) is pleased to announce that it has exercised its option to acquire 100 per cent of the exploration and development rights to the Doi Ngom multi-commodity mineral property in Phrae Province, in Northern Thailand. The cost to exercise this option was US$100,000.
The Company will have approximately four years to complete its evaluation of the property, concluding with feasibility studies, if warranted. Should feasibility studies demonstrate the economic and technical viability of a mining operation at the property, and the Company wishes to undertake such an operation on the property, the Company must pay an additional sum of US$250,000, grant Phrae Sila Co. Ltd. a 5% carried interest in the mining operation and pay Phrae Sila Co. Ltd. a 1% Net Smelter Royalty (1% NSR) on any mineral production from the property.
The Company expects to commence its initial exploration and evaluation program at the Doi Ngom property shortly. The program will include systematic mapping and sampling as well as the drilling of a series of shallow drill holes (up to 50 metres deep). The estimated cost of the program is $400,000 and it is scheduled to be completed within six to eight months.
The Doi Ngom Project
The project area comprises approximately 1.3 square kilometres and is held under three Mining Licences registered to Phrae Sila Co. Ltd. The area occupies the southern portion of a large breccia pipe, with total dimensions of approximately 2.5 kilometres by 0.5 kilometres.
Phrae Sila Co. Ltd. has operated small-scale mining operations on the site since the1970s, originally for stibnite (antimony ore), later for fluorite and subsequently for high-grade ferberite (a tungsten ore of the wolframite series). Active mining ceased some years ago.
The property has been mined solely for localized lenses or pods of high-grade material, which were extracted and hand sorted into a high unit value product. In addition to these high grade zones, disseminated mineralization is believed to occur throughout the breccia pipe.
Amanta Resources Ltd. is focused on mineral exploration, development and production in Thailand and the Southeast Asian region. The Company’s strategy is to concentrate on the systematic evaluation of known mineral occurrences, rather than "greenfields" exploration, creating early opportunities to finance and develop mines.
ON BEHALF OF THE BOARD OF
AMANTA RESOURCES LTD.
“Gerald D. Wright”
Gerald D. Wright,
President
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this News Release.
This News Release is not to be disseminated in the United States. These securities have not been registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States unless registered under the Securities Act or unless an exemption from registration is available.
The information provided in this news release may contain forward looking statements within the meaning of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements are based on Amanta Resources Ltd.'s current expectations and beliefs and are subject to a number of risks and uncertainties that can cause actual results to differ materially from those described in forward looking statements.
