RIO DE JANEIRO, Brazil, June 21 /CNW/ -- Companhia Vale do Rio Doce
(CVRD) announces that exploration drilling at Creighton, a more than
century-old nickel mine near Sudbury, province of Ontario, Canada, is
confirming mineralization at depth that has the potential to extend the mine
life well into the future and continue its longstanding economic contribution
to its wholly-owned subsidiary, CVRD Inco Ltd. (CVRD Inco) Ontario operations.
The Creighton Deep Project, a deep mine exploration program, has the
potential to almost double the proven and probable reserves at Creighton from
17 million metric tons grading 3.1% nickel and 2.5% copper to up to 32 million
metric tons grading 1.9 to 2.2% nickel and 2 to 2.3% copper.
CVRD has proven and probable reserves of 850 million metric tons grading
1.37% nickel, and, the largest in the world, the Ontario deposits represent
17.8% of its total reserves, as reported on the Form 20F annual report for
2006 filed with the U.S. Securities and Exchange Commission.
In operation since 1901, Creighton has delivered a total of 173 million
metric tons over its life with an average grade of 1.52% nickel and 1.22% of
Exploration and advanced exploration diamond drilling have shown
significant high-grade nickel, copper and platinum group elements (PGE)
mineralization between the 2,150 and 3,200 meter levels at the mine.
The exploration program continues, and three exploration stations located
1.5 kilometers have been constructed to support further economic study of the
findings to date. These latest stations are excavated further into the
footwall beyond current infrastructure, allowing exploration to the 3,200-
meter level across the entire strike length of all ore bodies.
The long and successful experience of CVRD Inco in deep mine operation,
with an excellent health and safety record, will be instrumental to the
development of the next deepening phase at Creighton, contributing to extend
the life of our Canadian operations and to value maximization.
The results announced today are part of CVRD's global mineral exploration
program, which involves a budgeted investment of US$ 120 million this year and
is key to support our long-term value growth.
This press release may contain statements that express management's
expectations about future events or results rather than historical facts.
These forward-looking statements involve risks and uncertainties that could
cause actual results to differ materially from those projected in forward-
looking statements, and CVRD cannot give assurance that such statements will
prove correct. These risks and uncertainties include factors: relating to the
Brazilian and Canadian economy and securities markets, which exhibit
volatility and can be adversely affected by developments in other countries;
relating to the iron ore and nickel business and its dependence on the global
steel industry, which is cyclical in nature; and relating to the highly
competitive industries in which CVRD operates. For additional information on
factors that could cause CVRD's actual results to differ from expectations
reflected in forward-looking statements, please see CVRD's reports filed with
the Brazilian Comissao de Valores Mobiliarios and the U.S. Securities and
For further information:
For further information: Roberto Castello Branco,
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