Ecometals Exploration Update Brazil



    
    Ecometals Signs Drill Contract for 2000 m Commencing late September
    DNPM Transfers 11 Concessions to Ecometals Ferro do Amapa Ltda.
    Fugro Completes 28,100 line km Magnetic/Radiometric Survey
    

    TORONTO, Sept. 2 /CNW/ - Ecometals Limited (TSX-V:EML), (the "Company")
is pleased to announce that significant progress has been achieved over the
last 4 months in Brazil and the Company is now ready to commence drilling on
its key Matapi iron property.
    On August 29, 2008, the DNPM approved the transfers of 11 concession
titles comprising 69,123.52 hectares to the Company's new joint venture
subsidiary, Ecometals Ferro do Amapa Ltda which were previously held by Alto
Tocantins. Fran Scola, Chief Executive Officer of Ecometals added, "With the
DNPM's approval in hand, the Company now holds secure title over its iron
concessions and can aggressively explore the numerous iron targets defined
within the concession area by the airborne magnetic survey and previous
exploration programs undertake by the Company."
    The Company intends to sign a diamond drilling contract with Greiphil
Minas Ltda. to undertake a 2000 m program designed to test several zones of
outcropping iron mineralization and high priority magnetic anomalies. The
program is expected to start in late September and will comprise 15-20 short
angled holes. The Matapi iron prospects are located 90 km north-northwest of
the capital city of Macapa in the State of Amapa. The logistics in the Matapi
area are excellent with close access to the State paved highway and railroad
which both terminate at the Port of Santana. An adequate supply of power and
water are readily available in the Matapi concession area.
    Ecometals, through Fugro Airborne Surveys, over the past three months,
has completed 28,100 line km of airborne magnetics and over the Company's
twenty one iron ore and manganese concession areas in the State of Amapa. The
survey commenced production on June 12th and was completed on August 26th.
Final products will be available by late September and will be used to refine
the drilling program. The Airborne Survey will be complimented by the
company's own ground magnetic survey covering iron mineralization
intermittently exposed at the Matapi iron prospect and its extension to the
northwest on the Greiphil concessions. The ground magnetic survey covers 15
km2 and was completed late August. Ecometals reported approximately
$9.4 million of cash and cash equivalents as of June 30, 2008, which
management believes is sufficient to execute its current exploration programme
in Brazil.
    Ecometals believes the Amapa State has substantial iron ore potential and
has entered into discussions with four private companies and one public
company that control concessions in the State of Amapa which host iron
mineralization. Preliminary in-house geophysical interpretations were
completed for the five areas of interest. To date no joint ventures have been
completed but discussions are on-going.
    Fran Scola also commented "This is a clear positive outcome in the
company's strategy towards the development of its iron ore prospects, and in
addition the company continues to focus on a similar positive outcome with
regards to its manganese projects in the next quarter."

    About Ecometals

    Ecometals Limited is a Canadian-listed mineral exploration and
development company focused on mineral resources in Latin America. Ecometals
also holds 44.4% of Atomaer Holdings Pty Ltd., a private Australian holding
company.

    Cautionary Statement Regarding Forward-Looking Statements

    Some of the statements contained in this release are forward-looking
statements, such as statements concerning proposed magnetic surveys, proposed
execution of a diamond drilling contract and expected outcomes regarding the
Company's iron ore and manganese prospects. Since forward-looking statements
are not statements of historical fact and address future events, conditions
and expectations, forward-looking statements by their nature inherently
involve unknown risks, uncertainties, assumptions and other factors well
beyond Ecometals' ability to control or predict. Actual results and
developments may differ materially from those contemplated by such
forward-looking statements. Material factors that could cause actual results
to differ materially from those contained in such forwarding-looking
statements include, among other things, fluctuations in manganese and iron
prices; procurement of required capital equipment and operating parts and
supplies; equipment failure; unexpected geological or hydrological conditions;
inability to enforce legal rights; defects in title; success of future
exploration and development initiatives; competition; operating performance of
the facilities; environmental and safety risks including increased regulatory
burdens; weather and other natural phenomena; the speculative nature of
exploration and development, including the risks of obtaining necessary
permits and approvals from government authorities; operating hazards, and
availability of labor, materials and equipment; changes in governmental laws,
regulations, economic conditions; changes in national and local government
legislation, taxation, controls, regulations, policies and political or
economic developments. These forward-looking statements should not be relied
upon as representing Ecometals' views as of any date subsequent to the date of
this release. There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on any forward-looking statements.

    
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
    





For further information:

For further information: Mark Kesselman, Chief Financial Officer,
Ecometals Limited, Tel: (212) 355-6037, E-mail: mlkeuro@aol.com

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ECOMETALS LIMITED

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