VANCOUVER, BC and NEW DELHI, INDIA, Sept. 4 /CNW/ - Pebble Creek Mining
Ltd. (the "Company") is pleased to announce that the Indian Bureau of Mines
gave its final approval to the Company's Mining Plan for the Askot deposit.
Askot is a high-grade copper, zinc, lead, silver and gold massive sulphide
deposit in Uttarakhand state, northern India (see news release of August 12,
The Company's 30-year Mining Lease application on 386 hectares was
cleared by the central and state governments last year. Approval of a Mining
Plan is a condition of the state's final grant of the Mining Lease as required
by India's Mines and Minerals (Development and Regulation) Act of 1957 and its
As required by law, the Mining Plan was prepared by two independent
mining engineers who are Recognized Qualified Persons ("RQPs") in India,
supported by the Company's staff engineers and geologists. Included in the
plan were historic data from the United Nations and four government agencies
that had previously drilled and tested Askot. In addition to the RQPs, reports
by thirteen Indian and western consulting firms engaged by the Company were
included or summarized in the plan.
The plan includes comprehensive geologic and assay data; a mineral
resource estimate; design of the upper five levels of proposed cut-and-fill
underground workings; metallurgical bench test results; design of tailings and
waste rock disposal systems; mine, mill and incidental water use and balance;
ground water monitoring systems; plans for neutralizing acid mine waters;
geotechnical properties of the rocks and underground support systems; blast
vibration analysis; discussion of all known species of flora and fauna in the
region; environmental and social considerations; and a mine closure plan.
The mine closure plan describes the surface area to be disturbed, which
determines the amount of the mine closure bond the Company will be required to
post prior to final execution of the Mining Lease. The Company has signed an
undertaking to do so in the amount of 1,356,000 Indian rupees, or about Cdn.
$33,000 at the present rate of exchange.
Approval of the Mining Plan clears the way for the Company to submit its
Environmental Impact Assessment and forest inventory to the Indian Ministry of
Environment and Forests for clearances, the last step before grant and
execution of the Mining Lease. The Company has already obtained approval for
development and operation from the state Pollution Control Board.
The Company's Askot project may become the first foreign-owned and
private-sector non-ferrous metal mine in India in many decades. Therefore the
Company has filed a preliminary application to insure against sovereign risk
with the World Bank's Multilateral Insurance Guarantee Agency ("MIGA") and is
in communication on the subject with Export Development Canada ("EDC"). Final
execution of the Mining Lease will allow the Company to submit final
applications for insurance to MIGA and EDC.
The Company intends to resume fill-in and step-out drilling after the
summer monsoon subsides.
The Company's President, Andrew Nevin, P.Eng., is the Company's Qualified
Person and has reviewed and approved this news release.
On Behalf of the Board
Gyan C. Singhai, P.Eng.
Forward-Looking Statements. This news release contains forward-looking
statements, which address future events and conditions, which are subject to
various risks and uncertainties. The Company's actual results, programs and
financial position could differ materially from those anticipated in such
forward-looking statements as a result of numerous factors, some of which may
be beyond the Company's control. These factors include: the availability of
funds; the timing and content of work programs; results of exploration
activities and development of mineral properties; the interpretation of
drilling results and other geological data, the uncertainties of resource and
reserve estimations, receipt and security of mineral property titles; project
cost overruns or unanticipated costs and expenses, fluctuations in metal
prices; currency fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of
the Company's management on the date the statements are made. The assumptions
used in the preparation of such statements, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such undue reliance
should not be placed on forward-looking statements.
"The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release."
For further information:
For further information: Gyan Singhai, Executive Chairman, Telephone:
(604) 696-6101; Mike Romanik, Investor Relations, Verenex Capital Corp.,
Telephone: (204) 724-0613