MONTREAL, Jan. 4, 2007 (PRIME NEWSWIRE) -- East Delta Resources Corp. (OTCBB:EDLT) (Frankfurt:EJK) announced today that it has signed a Letter of Intent to purchase the QiaoLaKe (pronounced "chow la kuh") gold mine from the XinJiang QiaoLaKe Mining Company Ltd. of XinJiang Province, China.
Under the terms of the agreement, East Delta Resources will acquire eighty percent (80%) of the mining rights, title and interest in the QiaoLaKe gold mine in XinJiang China for a total purchase price of RMB 4,000,000.00 (approximately US$500,000). Per the LOI, East Delta maintains the exclusive right to purchase the property until April 20, 2007, after which they will retain the first right of refusal to purchase until June 20, 2007. The parties further agreed that East Delta Resources will have the exclusive right to acquire the remaining twenty percent (20%) of the property rights retained by the Seller for one year from the closing date at a purchase price of RMB 2,000,000 (approximately US$250,000).
The property consists of mining rights and land concessions covering a total of 0.6 square km, and is located at E 81 degrees 26' and N43 degrees 57', at an altitude of 2,860 meters. The nearest city is YiNing, with regularly scheduled commercial airline flights available. The mining permit was issued in 2002 and expires in early 2008. Renewal of the mining permit looks to be straightforward and extendable at low cost. According to reports meeting Chinese reporting level 333, there are over 20,000 ounces of extractable, surface mine-able gold currently delineated. Over the next three months East Delta plans to perform due diligence at QiaoLaKe to assess the potential of the property and investigate previous work performed on the property.
The northern XinJiang region has become one of the most significant exploration targets for gold in China due to the existence of many large Variscan intrusion gold systems in the similar Paleozoic marine sedimentary rocks to the west in Central Asia (i.e., Kumtor, Zarmitan and Muruntau deposits).
Mr. David Bikerman, President of East Delta Resources, stated, "We are very enthusiastic about this new property acquisition and believe that there is great potential to develop a large scale, bulk mine-able open pit and heap leach operation in the area. This acquisition offers outstanding upside potential at a low opportunity cost, and is an excellent compliment to the Company's gold property portfolio presently comprised of Huaqiao and Bake, both of which are located in China."
The Company
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 and through various subsidiaries also participates in other mineral exploration and mining, specifically, silver, nickel, zinc and lead.
The geographic focus of the Companies is China. With funding for current needs in place, 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.