Replies to post #54 on Magindustries Corp (fka MAAFF)

[papa p]

They have 33.2 million tonnes of potash.

MAGINDUSTRIES ANNOUN
CES SIGNING OF ENGIN
EERING DESIGN CONTRA
CT FOR MENGO PROJECT
AND EXPLORATION WELL
DRILLING
MagIndustries
Corp (“MagIndustries” or the “Company”)
(MAA
–
TSX) is pleased to report that it has
entered into
two
contracts to further the development of its potash projects in the Republic of Congo (“ROC”). The first contract is for
engineering design work for the Company’s flagship Mengo potash project (the “Mengo Project”). The second contract is
for explorati
on well drilling at the Company’s additional exploration licenses which surround the Mengo mining license.
The
Mengo
P
roject
is a
propose
d
1.2 million tonnes per year potash mine and processing plant to be constructed in two
modules
of 600,000 tonnes per year each. The
Mengo
Project is located near the village of Mengo, 25 kilometers east of
the Atlantic port city of Pointe
-
Noire,
ROC
.
The Company holds a mining license for a 136
km
2
area (the “
Mengo
License”)
containing
proven and
probable reserves of 33.2 million
ton
n
es
(1)
(2)(3)
of potash
(KCl)
,
which was granted in March 2008.
The engineering and design contract has been entered into with the with the
Changsha Design & Research Institute of
the
Ministry of Chemical Industry
(“Cha
ngsha Institute”), People’s Republic of
China
(“China”). This contract is for the full
design, engineering services and procurement assistance associated with the construction of the Mengo Project,
including
brine extraction, transfer, processing plant,
wast
e brine transmission,
brine effluent
handling
,
thermal power
station, office
s and housing, public utility interfaces
, auxiliary
engineering and the external transportation, external
engineering work (including supply of
water,
natural gas, electricity
supply and access
road
s
)
and
the water supply
and
pumping. The total price of the contract is approximately
US$17,800,000
subject to adjustment
mechanism
s for the US
dollar/Chinese Yuan exchange rate and performance incentives of up to 18%.
Founded in 197
8, the Changsha Institute is a research, exploration, design and supervision unit directly under the China'