MONTREAL, Dec. 18, 2008 (GLOBE NEWSWIRE) -- East Delta Resources Corp. (OTCBB:EDLT) (Frankfurt:EJK) announced today that its majority owned subsidiary, Sino-Canadian Metals Inc., which owns a 50-Tonne/day nickel/copper smelter in China, will reorganize the site management structure and upgrade the facility with the intention to restart production in the early part of 2009.
The Company spent over $400,000 to build the facility and hire and train operations personnel. The plant is scheduled to operate 24 hours a day using three shifts with a total capacity of 50 tonnes per day. The process mixes nickel-copper ore with several other raw materials, including coal, sulphur, iron, and limestone into its furnace and upon heating generates the primarily product, an intermediate form of Ni-Cu, that is Ni-Cu aggregate or iced Ni-Cu.
The plant commenced operations in late June 2008, underwent preliminarily start-up operations and initial production. In August 2008, the smelter was forced to suspend operations until late fall due to the Chinese Olympic curfew. This adverse event was then followed by the worldwide collapse in commodities prices. To retain profitability, the Company is undertaking equipment modifications and improvements. The most significant area for upgrades is the furnace where energy consumption and efficiency are major cost concerns. These operating costs will further be reduced by the installation of a new monitoring system and refurbishing of the brick lining.
The initial production run of Ni-Cu aggregate has been sent to our customers for further evaluation and pricing and at current world nickel and copper prices, the plant is deemed to still be profitable, with further improvements in profitability expected.
Under the new management plan, the Company's Joint Venture Partner, Professor Liu Jiang, will re-locate to be on site and assist with plant operations. He will be accompanied by his own technical and management team to run the smelter.
Mr. Victor Sun, president and CEO, of East Delta stated, "Although we have had unfortunate events delay our production, we still anticipate a profitable 2009 from this plant, and with improved commodities prices, we can also re-start our original expansion plans."
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.
Sino-Canadian Metals Inc. is a private Delaware corporation, headquartered in Montreal, Quebec and 63% owned by EDLT.
The geographic focus of the Companies is China. With 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.