MONTREAL, Nov. 8, 2004 (PRIMEZONE) -- East Delta Resources Corp. (OTCBB:EDLT) announced today that its wholly owned subsidiary Amingo Resources Inc. has signed a letter of intent to form a Joint Venture with the Chinese mining company, Huagiao Mining Co. The agreement would give Amingo the right to purchase up to 70% of Huagiao's gold project in Jinping County of Guizhou Province (China). The project consists of a producing gold mine and additional exploration permits covering 10 square kilometres on the northeast side of the existing mine. Precise terms of the acquisition are being negotiated.
The mine has operated for almost twenty years in a small area of about 0.6 sq.km., producing between 10,000 to 20,000 ounces of gold per year.
Mr. Victor Sun, President and CEO of East Delta commented, "While the size of the existing mine is relatively small, the completion of this acquisition will provide immediate revenue to the Company. Also, it will allow us to greatly increase production and efficacy with the technology and expertise that we bring to the JV. More importantly, this project will confirm East Delta as a significant and capable mining entity in China."
The property is located approximately 350 kilometres by road southeast of the capital city of Guiyang in Guizhou Province. It has access to power and water and is easily accessible via an express highway.
Dr. Lu Huan Zhang, President of Amingo and Chief Geologist of East Delta, added, "The Huagiao project has excellent potential to host significant gold resources. Very little modern exploration has been done in the area and the current mining operations appear to have just scratched the surface. Regionally, the area along the fault zone provides good potential to delineate additional areas of mineralization."
Currently, the local Chinese miners have been running small-scale mining on the Huagiao gold property at near-surface gold mineralization for almost twenty years with reported grades of approximately 5-8 g/t gold. In the area near the property, higher grades of up to 50 g/t gold are being mined to depths of less than 200 metres from a series of adits. Due diligence is underway to confirm the reported grades. To date, there has been insufficient exploration to delineate whether a substantive resource can be defined on the property.
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