Asia Pacific Resources Ltd (C-APQ) - News Release
Asia Pacific takes Udon North issue to referee
Asia Pacific Resources Ltd APQ
Shares issued 464,369,448 Feb 17 2004 close $ 0.22
Wednesday February 18 2004 News Release
Mr. John Bovard reports
ASIA PACIFIC AND THAI GOVERNMENT PROCEED TO DISPUTE RESOLUTION ON UDON NORTH
Asia Pacific Resources announced that its Thai subsidiary, Asia Pacific Potash Corporation (APPC), and the Thai department of primary industry and mines (DPIM) have acknowledged that the matter of the extension and/or renewal of APPC's rights to the Udon North potash project will be submitted to an independent referee in accordance with the dispute resolution procedures defined in the APPC concession agreement. The board of directors of APPC, which includes a representative of the Thai government, a 10-per-cent owner of APPC, unanimously agreed to this action.
In December, Asia Pacific Resources announced that, on Nov. 5, 2003, it filed applications for the extension of special prospecting licences over the ground held under expiring prospecting licences issued pursuant to the concession agreement and the Minerals Act. In December, APPC received a letter from the DPIM which questioned APPC's right to extend or renew the special prospecting licences.
APPC's view is that it is fully entitled to an extension of the expiring special prospecting licences covering the Udon North area pursuant to the provisions of the concession agreement. The dispute resolution procedures in the concession agreement set out a structured process that allows APPC to seek an independent resolution of this matter.
Udon North is an advanced stage project on which MRDI Consulting of Vancouver, B.C., completed a resource estimation of the mineral sylvinite, in accordance with the application of Section 1.5 of the National Instrument 43-101. Estimated resources include 175 million tonnes indicated, with an average grade of 19.0 per cent K20 and an average thickness of 12 metres, and a 490-million-tonne inferred resource with average grade 16.5 per cent K20 and average thickness of 12 metres.
For resource modelling purposes, geological parameters for indicated resources included a minimum seam thickness of 5.0 metres and a grade equal or greater than 15.0 per cent K2O and less than 1.0 per cent MgO. Inferred resources included a minimum seam thickness of 5.0 metres and a grade equal or greater than 10.0 per cent K2O and less than 1.0 per cent MgO.
The resource study also concluded that additional strategic infill and boundary delineation drilling will be required to provide sufficient geological and geotechnical data that will permit the completion of ore definition. The company also concluded that an environmental impact assessment and various government approvals are required to advance the Udon North potash deposit to the status of the Udon South potash deposit, which has an approved EIA and all detailed technical studies completed.
APPC applied for a mining licence for Udon South on May 29, 2003. The application for the Udon South potash deposit is not affected by the Udon North special prospecting licences. Udon South is planned for development based on an initial production rate of one million tonnes of potash per year increasing to two million tonnes of potash per year though a plant expansion.
John Bovard, president and chief executive officer of Asia Pacific Resources, said: "The company continues to focus its efforts on obtaining the mining licence and is working closely with the government of Thailand to expedite the issue of mining regulations under the Minerals Act and the procedures for a public hearing. The discussion regarding the special prospecting licences for Udon North has no impact on our plans for the major Udon South deposit."
APPC has retained specialist advisers on a success fee basis to enhance the company's efforts to resolve the Udon North matter and to procure the Udon South mining licence on a timely basis.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
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