DENVER, Jan. 11, 2005 (PRIMEZONE) -- Trend Mining Company (OTCBB:TRDM) is pleased to announce that it has signed a Letter of Intent with Aurora Metals (BVI) Limited (OTCBB:AURMF) to enter into a joint venture agreement. Under these arrangements, Trend will explore for platinum group metals ("PGM" mineralization) on portions of the Stillwater layered intrusive complex in Montana. Aurora, for its part, retains exclusive rights to explore for and develop copper-nickel mineralization in the Nye Basin to the southeast of the Trend-Aurora JV as well as retaining exclusive ownership of its existing chrome resources on the Mountain View lease to the north.
Layered intrusions such as Stillwater are known for hosting PGM mineralization, chrome, iron, copper-nickel and other metals in certain favorable layers of the massive rock body, and Stillwater itself is best known as the location of the largest platinum-palladium mining operations located outside of the famous Bushveld complex -- a similar suite of rocks -- in South Africa. Operated by Stillwater Mining Company ("SMC"), the Stillwater operation produces at an annual rate of approximately 600,000 oz/year (combined platinum and palladium) at a total cash cost of approximately $319 per oz.
At the Bushveld Complex, platinum and palladium are produced at a number of operations from a unit of the geologic package known as the Merensky Reef. The analogous unit at Stillwater is known as the J-M Reef, from which SMC realizes its PGM production. In South Africa, lying stratigraphically below the Merensky Reef is another PGM-bearing horizon known for hosting economic concentrations of PGMs known as UG2 mineralization. Analagous to the Bushveld's UG2 horizon, Stillwater contains a unit known as the B-Chromitite unit, which lies stratigraphically beneath SMC's J-M Reef. Because the rocks at Stillwater are tilted to the North, the B-Chromitite horizon -- which technically lies beneath the J-M Reef -- actually lies to the south of SMC's horizon and occurs on ground held by Aurora Metals.
Under terms of the joint venture agreement, Trend will be the operator during the exploration phase of the venture and can earn 50% in the project by spending $2 million over 5 years. Work commitments during the first and second year total $100,000 and $400,000 respectively, after which work commitments total $500,000 per year. Other consideration to Aurora will consist of 50,000 shares of Trend's common stock upon signing the definitive agreement, $20,000 cash and 20,000 shares on the first anniversary, and $20,000 in cash or stock on subsequent anniversary dates until Trend has spent the agreed upon sum of $2 million. At that point, a 50-50 joint venture company will be formed by the two companies to operate and further develop the project. The Trend-Aurora arrangements will be subject to terms of two underlying agreements with the original claim owners.
Trend Mining Company is a Denver-based exploration company that has 100% ownership and large land positions at two North American precious metals properties with potential for hosting significant metal deposits containing platinum, palladium, gold and other metals and two uranium properties in Saskatchewan with potential for hosting high grade, unconformity-type uranium mineralization.
Throughout this press release there are forward looking statements and assumptions made by management within the meaning of Section27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to the safe harbor created by those sections. Factors that could cause results to differ materially from those projected are, but not limited to, adverse price fluctuations of underlying metals, the company's ability to acquire and develop properties, competition from larger more established companies, the ability to finance future acquisitions and projects, and governmental regulation. Trend Mining Company believes that the projects it has entered into and those it will enter into show promise, but there can be no guarantee of that. This press release is for informational purposes only and should not be construed as an offer to solicit, buy, or sell any security.