CHEYENNE, Wyo., March 1, 2010 (GLOBE NEWSWIRE) -- Element92 Resources Corporation (OTCBB:ELRE) ("Element92" or the "Company") requested Minarco-MineConsult ("MMC"), a wholly owned subsidiary of Runge Limited, to carry out a visit to the gold mining and processing assets of Yinfu Gold, which are to be acquired by Element92 (See News Release dated January 25, 2010). MMC's mandate was to provide an overview of the assets. The review is part of the due diligence process being conducted by Element92 Resources Corp.
The gold mining and processing assets reviewed by MMC included: Huwei (Wujia) Gold Mine and Processing Plant, Wendeng Gold Mine and Processing Plant and the South-Shijing Gold Exploration Area. The assets were inspected by one of MMC's Senior Chinese Geologists from February 2nd to February 4th 2010.
MMC was not paid professional fees to perform the site inspections and is a beneficiary of the acquisition transaction, as well as its association with Element92 moving forward. In this regard, MMC is not Independent; however Element92 believes that the professional opinions expressed by MMC are not compromised by this potential conflict of interest.
The purpose of this preliminary and limited inspection was to provide Element92 Resources Corp. with a preliminary understanding of the Relevant Assets as a precursor to the completion of detailed assessment work. MMC has not been able to verify original source data such as drill logs, core samples etc as part of inspection. It should also be noted that SEC regulations prohibit disclosure or inference concerning the presence of possible commercially viable mineral resources.
Huwei (Wujia) Gold Mine and Processing Plant
Status: The Huwei Gold Mine (referred to as the Wujia Gold Mine in some reports) was granted a mining license in late 2009,
Location: The Huwei Mine and Processing Plant are located 70 km west of Yantai City and are accessed by a paved road which connects to the mine and processing plant.
Licenses and Permitting: The Mining License area covers 0.222 km2 within the existing Exploration License area of 0.34 km2. The Mining License and Exploration License both are owned by Huwei Mineral Invest Co., Ltd.
Future Plans: To continue current activities, as well as the completion of further exploration to extend the current area.
Opportunities: Expansion of the operation based on improved understanding that could be derived from historic review and additional sampling and exploration.
Securing additional possible sources by successful tendering for additional areas.
Wendeng Gold Mine and Processing Plant
Status: The Wendeng Gold Mine has been in operation for a number of years using typical Chinese underground mining methods. Limited information was made available to MMC. Management indicated however that the mine and processing plant has a capacity of approximately 33,000 tonnes of ore per year.
Location: Wendeng Gold Mine and Processing Plant are located in Wendeng City, south of Yantai City of Shandong Province and are accessed by an unpaved road which connects to the mine and processing plant.
Licenses and Permitting: A mining License covering an area of 0.28 km2 and for a production capacity of 20,000 tonnes per year exists with validity from July 2009 to July 2011.
Exploration Potential: If additional ground could be acquired adjacent to the existing lease areas, there is potential for discovery of mineralized ore bodies.
Future Plans: To continue current activities, as well as completing further exploration to extend the current area.
Opportunities: Expansion of the operations based on securing potential gold sources by successful tendering for additional areas.
South Shijing Gold Exploration Area (Roncheng)
Status: The South Shijing Gold Exploration Area is an early stage exploration project which is currently completing exploration works to identify and define possible mineralization within the existing lease areas.
Location: The South Shijing Exploration Area is located in area called Datuan of Rongcheng City, in Shandong Province and is accessed by a simple dirt road.
Licenses and Permitting: Management indicated that an Exploration License covering a total area of 5.48 km2 is in place is valid from the 22nd of December 2009 to the 30th September 2011.
Geology: In the South-Shijing exploration area, there is a reservoir which divides the exploration area into two parts, namely the East and West Exploration Areas. MMC suggests that exploration potential exists for both Exploration Areas, but especially the West Exploration Area. Current exploration activities are being undertaken by the No. 6 Geological Bureau of Shandong Province Geological.
Future Plans: To complete further exploration to better define the size of possible ore bodies.
Opportunities: Expansion of the operation based on securing possible gold resources by successful tendering for additional areas.
Overall Conclusion
MMC suggest that typical with other gold projects in Shandong, each of the above mentioned mines/projects represent real assets to gain exposure to the gold sector in China.
Element92 Resources Corp. is a mineral exploration and mining company incorporated in the State of Wyoming. In addition to the proposed acquisition noted above, the Company holds options on 14 mineral claims located in Huddersfield Township and Clapham Townships in the Province of Quebec, Canada. Element92 Resources Corp. trades on the OTCBB under the symbol "ELRE." There are currently 9,048,000 fully diluted shares outstanding..
Forward-Looking Statements
Statements, which are not historical facts, are forward-looking statements. The Company, through its management makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessary estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors, factors which could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcements.
On Behalf of the Board
/s/ Geoff Armstrong,
President, Element92 Resources Corp.