PROPOSED ACQUISITION OF EXPLORATION AND DEVELOPMENT PROJECT IN NORTHERN THAILAND
August 24, 2004
Amanta Resources Ltd. (the “Company”) announces that pursuant to a Memorandum of Understanding, it has agreed to acquire exploration and development rights to a multi-commodity mineral deposit in Phrae Province, in Northern Thailand, subject to technical and legal due diligence by the Company. The acquisition of the property is subject to regulatory approval.
The project area comprises approximately 1.3 square kilometres and is held under three Mining Licenses registered to Phrae Sila Co. Ltd. The area occupies the southern portion of a breccia pipe, with total dimensions of approximately 2.5 square kilometres by 0.05 square kilometres, and is known to host a variety of minerals including tungsten, stibnite and fluorite.
Phrae Sila Co. Ltd. has operated small-scale mining operations since the 1970s, 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 deposit 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. Disseminated mineralization occurs throughout the area and it is believed that there may be potential for a mining operation.
Subject to the satisfactory completion of due diligence, the Company proposes to conduct a series of exploration programs and, if warranted, detailed drilling programs and feasibility studies, over a period of up to four years. Should a feasibility study demonstrate the economic and technical viability of a mining operation, the Company shall have the right to construct and operate such a mine.
As consideration for the exploration and development rights, the Company must pay the sum of US$ 100,000 by December 15th, 2004. Should the company undertake a mining operation at the property, it must pay a 2% Net Smelter Royalty on any mineral production, and to grant Phrae Sila Co. Ltd. a 5% carried interest in the mining operation.
ON BEHALF OF THE BOARD OF
AMANTA RESOURCES LTD.
“Gerald D. Wright”
Gerald D. Wright,
President
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