ECPN / News 3/9/05
El Capitan Updates Progress on Agreement for Sale of Iron Ore to the Chinese Steel Companies; El Capitan Reports Estimated Reserves in Excess of 30,000,000 Tons of Magnetic Iron in the Rainbow Mine
March 09, 2005 07:00:03 (ET)
SCOTTSDALE, Ariz., Mar 09, 2005 (BUSINESS WIRE) -- El Capitan Precious Metals, Inc. (ECPN, Trade) announced today that Chinese steel companies are seeking to finalize an agreement for the purchase of iron ore from the Rainbow Mine. Ken Kinnie, President of Asia Finance Corporation, stated: "The need for iron ore in China is constantly increasing. As soon as the transportation issues are negotiated the Chinese are ready to finalize a formal agreement." Meanwhile, the Company is looking into other alternatives of transportation as well as shipping out of Mexico instead of the U.S. Chuck Mottley, the Company President, stated: "Demand for iron ore is increasing substantially throughout the world. Since the Memo Of Understanding with the Chinese was negotiated in 2004 prices of iron ore have risen as much as 70% to date. It is documented that long-term contracts for iron ore have been negotiated for $50 per ton and more."
The Company has completed calculations of the total magnetic iron reserves for the Rainbow mine based on the results of tests from the drilling done several weeks ago. The Company estimates that the total magnetic iron in these claims exceeds 30,000,000 tons.
AuRIC Metallurgical Labs, working with geologist Dr. Clyde Smith, have informed the Company that a major piece of equipment used for ore analysis was out of operation for several days last week. As a result the Company expects the final report on the assays of precious metals from the El Capitan mine next week.
El Capitan Precious Metals, Inc. is an exploration stage company that owns a 40% interest in the El Capitan mine located near Capitan, New Mexico, as well as a joint venture and 20% ownership of 13 mining claims and other assets known as the C.O.D. mine located near Kingman, Arizona. In addition, the Company owns contractual rights to the Rainbow Valley mine consisting of 1660 acres and 100% of the Weaver mine, both near Phoenix, Arizona.
The statements included in this press release concerning predictions of economic performance and management's plans and objectives constitute forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, among others, the results of metallurgical testing, the ability to mine precious and other minerals on a cost effective basis, the company's ability to successfully complete contracts for the sale of its iron ore and other products; fluctuations in world market prices for the Company's products; competition from iron ore producers worldwide, which producers have greater resources and more established operations than those of the company; the company's ability to arrange transportation from its mining properties to ocean ports on satisfactory terms; the Company's ability to obtain or maintain regulatory approvals; the company's ability to obtain financing for the commencement of mining activities on satisfactory terms; the Company's ability to obtain necessary financing; and other risks and uncertainties described in the Company's filings from time to time with the Securities and Exchange Commission. The Company disclaims any obligation to update its forward-looking statements.
SOURCE: El Capitan Precious Metals, Inc.
El Capitan Precious Metals, Inc.
Ron Perkins, 480-607-7093
Copyright Business Wire 2005