Press Release Quarterly Review
EMR
Microwave Technology Corporation
64 Alison Blvd., Fredericton, New Brunswick, Canada E3C 1N2
Tel (506) 459-4334 Fax (506) 459-4345
Press Release
QUARTERLY REVIEW
1 November 1997 - 31 January 1998
Fredericton, N.B., 3 March, 1998---EMR Microwave Technology Corporation
("EMR") (EMW-ASE) is pleased to release a review of current and projected
activities in the following areas:
Mining Pretreatment Processes
* Intense Industry Interest in Pilot Plant
* Minex Project Status
Heavy Oil Extraction Technology
Marketing And Investor Relations Activity
Corporate Finance
This is the third of three quarterly reviews that, in addition to the
Annual Report, EMR is releasing as part of its continuous disclosure
program.
Additional background information on EMR can be obtained from EMR's web site
emrmicrowave.com
For further information contact: Carl D. Ash, FCA
Chief Financial Officer
Phone (506)444-8704 or 1-888-561-3671
Fax (506)444-8707
e-mail carlash@emrmicrowave.com
www.emrmicrowave.com
THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE
CONTENTS OF THIS PRESS RELEASE
Mining Pretreatment Processes
* Intense Industry Interest in Pilot Plant
Since EMR's commercial size microwave ore pretreatment plant became fully
operational in the late fall, it has attracted great interest from the
mining industry since it demonstrates that EMR's pretreatment technology
can handle commercial throughput of a wide variety of ore types at
substantially reduced cost.ÿ We have had more than two dozen inquiries and
visits from mining companies and their process design consultants,
including some of the largest mining companies in the world (Newmont,
Placer Dome, Anglo-American).ÿ EMR has secured preliminary testing
agreements designed to test the applicability of EMR's technology to the
subject ore type withÿ a number of these companies on a cost -recovery plus
basis.ÿ EMR reported success on the first three processes, as announced in
December; a carbonaceous ore from Nevada, an encapsulated goethite from
Mexico and a typical arsenopyrite from the Red Lake area of the Canadian
Shield.ÿ Testing agreements are presently being carried out on several
arsenopyrite ore bodies, a lead-zinc reserve and a platinum group project.
Several of these agreements are expected to proceed to the next stage,
which is large quantity process design utilizing EMR's commercial pilot, as
part of a preproduction feasibility study before actual mill construction .
* Minex Project Status
During the summer and fall of 1997, Minex Resources, LLC constructed and
tested a pilot gravity concentration circuit.ÿ From the operation of the
pilot, Minex reported that it was able to produce concentrations of
precious metals, but on an inconsistentÿ and non-optimized basis.ÿ Minex
therefore was unable to commence shipments to a refiner on schedule, and
Minex and EMR made a mutual decision to seek outside expertise to optimize
the concentration process, which is prior to EMR's Microwave process.
In early December, Minex and EMR referred the completion of the engineering
and process design of the concentration circuit to Colorado Minerals
Research Institute (CMRI) of Golden, CO.ÿ Pincock, Allen & Holt (PAH) was
also engaged to do a complete third party audit of reserve size and CMRI
was contracted to carry out the role of a certified assay test house, under
the scrutiny of PAH, in order to prepare a bankable feasibility study to
finance the construction of aÿ 500 tpd mill at Minex's site in Arizona.
This engineering, process design work and the reserve audit is still
underway with preliminary reporting expected in a few weeks.
Heavy Oil Extraction Technology
Robert Wilson, EMR's Manager of Petroleum Operations, based in EMR's
Calgary office, continues to advance the commercialization of EMR's
microwave heavy oil technology.ÿ On the basis of reservoir modeling, EMR is
confident of its ability to demonstrate a commercial heavy oil recovery
system designed to operate on a stand alone basis in both horizontal and
vertical well recovery and EMR is aggressively seeking joint venture
opportunities with heavy oil industry participants including producers and
service companies.
Interest continues with Chevron, via Duke Engineering Services, and
Imperial Oil.ÿ Discussions are ongoing with several junior resource
companies, a large oil field service company and EMR has had two separate
expressions of interest, followed by meetings, with representatives of the
Venezuelan oil industry.
EMR is encouraged by the strong interest shown in our process by a wide
variety of industry players.ÿ We feel the recent slump in oil prices
presents an enhanced opportunity to interest the industry in the ability of
the EMR's microwave technique to reduce production costs and increase
recovery, as predicted by reservoir modeling.
Marketing And Investor Relations Activity
EMR's metal extraction technology is ready to be licensed to the mining
industry and the company is commencing a marketing campaign to create
visibility in the mining industry.ÿ EMR staff will attend the upcoming
Prospector's and Developer's Convention in March in Toronto, the Randol
Gold and Silver Forum in April inÿ Denver and the CIM Conference in
Montreal in May, having been invited to give major presentations on the
advantages of EMR's microwave extraction technology at both Randol and CIM.
Corporate Finance
EMR'sÿ financial statements for the year ended December 31,1997 are
presently under audit and will be released with the Annual Report in early
May.ÿ As announced in the last Quarterly Review, the company continues to
finance by private placement, the last one closing 13 February, having
raised $945,500.ÿ Half of this was invested by officers, directors and
employees of the company.
Until cash flow from licensing commences, which EMR believes will be this
year, EMR will continue to raise funds as needed primarily by private
placement although some funds will be available from non-dilutive sources
such as government-backed loans.ÿ EMR expects operating expenses to be
approximately $7 million over the next two years.ÿ Of this, outstanding
warrants exercisable below the present share price should fund $4.1
million, including $1.5 million this year.ÿ Management is in the process of
assessing other financing options to secure the appropriate funding and is
in discussion with a number of potential sources. |
