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Gold/Mining/Energy : IBI CORP IBIC (CDN) -- Ignore unavailable to you. Want to Upgrade?

To: Elizabeth A Rice who wrote (243)	3/24/1999 11:29:00 AM
From: Elizabeth A Rice	Read Replies (1) \| Respond to of 422

IBI CORPORATION REPORTS BUSUMBU PHOSPHATE RESERVES Toronto, CANADA: IBI Corporation reports the Busumbu phosphate deposit contains a proven reserve of 8.5 million tonnes, consisting of 3 million tonnes with an average grade of 11% P2O5 in the soil, (which has average thickness of 2 meters), and an additional 5.5 million tonnes of phosphate at an average grade of 15% P2O5 contained in the underlying weathered material (saprolite), (which averages 4 meters in thickness). Additional potential phosphate bearing material of similar grade is estimated at 30 - 50 million tonnes. The reserve estimate is based on 303 pits to a depth of 6 meters, 14 trenches to an average depth of 4 meters, 28 drill holes to an average depth of 28 meters, variogram modeling and kriging, and a cut-off grade of 9% P2O5. Only phosphate categorized as reserves can be profitably mined under current economic conditions. The company has not prepared a formal feasibility study. Agricultural soils in Uganda and surrounding countries are characterized by major phosphate deficiencies. More than 4,000 field demonstration plots set up by the U.S. Agency for International Development under the Agribusiness Development Center (ADC), Uganda, have shown that crop yields can be increased 2 to 3 times through the application of phosphate fertilizer. ADC estimates annual fertilizer use in the Busumbu market area as approximately 290,000 tonnes. Most fertilizer is imported. In a letter dated July 14, 1998, ADC reported that its cost at the village level can reach up to $750/tonne. The Busumbu phosphate is simple to beneficiate. The company estimates its costs to produce a direct-application phosphate fertilizer will be approximately $150/tonne. The Busumbu phosphate deposit was discovered by K.A. Davies in 1929 and has been studied and evaluated by several independent parties including the East African Industrial Research Board, the Ugandan Department of Geological Survey and Mines, and the United Nations Department for Development Support and Management. In 1995, the deposit was the subject of an M.Sc. thesis by Edwards Katto. Mr. Katto demonstrated that variogram modeling and kriging improved estimation of the resource. 62,000 tonnes of fertilizer were produced from the Busumbu phosphate deposit between 1945 and 1963. The aforementioned information is taken from a report dated June 1998 prepared by Dr. Ulrich Kretschmar, FGAC, FSEG. Dr. Kretschmar is an independent consulting mineral exploration geologist. He independently examined the sampling and assaying data underlying the calculations of the reserves and resources in his report. Certain matters relating to the reports of these reserves and resources have been discussed in IBI's rights offering circular dated February 17, 1999. IBI shares and rights trade on the Canadian Dealing Network under the symbols IBIC and IBIC.RT, respectively. By funding certain expenditures, IBI will earn a 70% interest in the property. The company has 181,838,445 common shares issued. For further information, please contact: Dr. Peter van Straaten Tom Smeenk, President Tel. 519-856-9291 Tel. 416-777-1073 Fax 519-856-9291 Fax 416-777-1206 Email: peter.vanstraaten@sympatico.com Email:info@ibicorp.com