ADDITIONAL PROPERTY RIGHTS SECURED
TORONTO, ONTARIO - Thursday, January 31, 2002 #2002 - 139
IBI Corporation (YIB-CDNX) (the “Company”), a junior international mining and investment company, which has successfully started commercial production at its world-class Uganda vermiculite project, has completed significant progress on a number of additional strategic initiatives:
Property Rights
Approvals have been granted by relevant government agencies and ministers providing the Company’s 100% wholly-owned subsidiary, Canmin Resources Limited (“Canmin”), with Exclusive Prospecting Licences (“EPLs”) number 4468 and 4467 in Mbale district, consisting of approximately 40 square kilometres. These are contiguous to the existing Canmin EPL 4427, which consists of approximately 18 square kilometres. Canmin’s current mining lease within EPL 4427 consists of 1.142 square kilometres.
These new EPLs include significant additional areas of the Bukusu ridge, which existing evidence suggests will contain similar vermiculite occurrences. Large African anthills (the local ants are often represented to be the best geologists) contain conclusive quantities of vermiculite, and water wells some 2 kilometres away on the ridge were drilled through vermiculite. The cross-section mapping from the previous exploration drilling to 45 metres depth on EPL 4427 demonstrated that the vermiculite was continuous beyond the defined area in all four directions.
A portion of the existing mining area of 1.142 square kilometres has proven reserves in excess of 5 million tonnes of recoverable vermiculite, as per the Company’s press release #116 dated September 28, 2000. Canmin owns a 100% working interest in the mine, subject only to a Uganda royalty of approximately U.S.$1.50 per tonne.
Hans Hansen, the managing director of Canmin, indicated to the Uganda Department of Geological Survey that “it is important to be in a position to blend raw vermiculite ore from different areas to meet the specific grade and quality requirements for certain international customers”.
The work program for the next 12 months has been established as a condition of the new EPLs, and details will be posted on the Company’s website, along with a map of the new EPL areas and the defined ridge structure.
It is anticipated that some of this area will also contain phosphate and limestone.
Other Minerals
The Company has information from geological and mining professionals that have worked on the Canmin site, supported by laboratory analysis carried out in the initial site investigations, that the phosphate bearing rock may also contain certain other rare earth elements. Detailed investigation must still be carried out to establish definitive grades, recovery methods, and commercial viability. Some preliminary work is expected to be done in the next three months.
Gary A. Fitchett, President and CEO, advised the Board of Directors that “the identified elements are the type sold by the ounce or pound, not by the tonne”.
Orders Building
The company has now received two repeat orders from established customer. A number of other prospective orders continue under discussion and negotiation.
It is clear to the Company that the order cycle in this industry is long, because of the following factors: the substantial sea freight time for factory samples (30 to 60 days), the time for the exfoliator to run and evaluate tests, the need to demonstrate the unique qualities of Uganda Vermiculite to end-user customers, and to use up existing inventories of vermiculite.
One of the unique characteristics of the Company’s vermiculite is that it exfoliates into a cuboidal shape, rather than the typical “worm-like” exfoliated product. International specialists in vermiculite have commented that the cuboidal shape will provide superior performance for the end-user, but the different appearance is initially unusual for the customer.
Domestic Market Developing
Further to the Company’s press release #134 dated November 23, 2001, Canmin had provided samples to and consulted with the Rose Growers’ Association in Uganda to demonstrate the commercial advantage to treating growing soils with exfoliated vermiculite. Roses, to supply the international markets through the distribution channels in Holland, are an expanding industry in Uganda. The Canmin initiative is being sponsored and supported by the U.S. Agribusiness Development Centre under the Investment in Developing Export Agriculture Project (IDEA).
An initial order of 400 bags (40 Cubic metres) was delivered on January 22, and a further order of 600 bags was provided by return.
Canmin is the only supplier of exfoliated vermiculite to the domestic market.
Research and Development for North American Market
As a result of referrals from industry associates in the United States, the Company has been experimenting with the development of a micronized raw vermiculite (dust-like particle sizes of 0.0059 to 0.0117 of an inch).
The prospective customers are searching for asbestos-free material to blend into specialty paints for the creation of fireproof walls and building products.
One of the prospects this week wrote to Canmin, and said: “The quality of your vermiculite is well known, and is becoming more so. I think it is what I have been waiting for.”
The Company has 226,295,600 shares issued and outstanding, prior to any cancellation of shares resulting from the Counterclaim and injunction against Edward Lai, et al ( see press release #138 of January 30, 2002)
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Gary A. Fitchett CA – President and CEO Adam Cegielski - Investor Relations
Tel: (416) 367-3274 Tel: (905) 279-2622
e.mail: ibicorp@think.iprimus.ca e.mail: newibi@on.aibn.com
http:// www.thenewibi.com
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Adam R. Cegielski
Investor Relations
IBI Corporation
Tel: (905) 279-2622
e-mail: newibi@on.aibn.com |
