WGI sustains minor damage by tsunami

Vancouver — WGI Heavy Minerals (WG-T) sustained only minimal damage following the devastating tsunami that claimed an unprecedented number of lives in coastal areas of the Indian Ocean, particularly South Asia.

The company’s 74%-owned subsidiary, Transworld Garnet India, operates the Uvari pre-concentration plant in the coastal area of Tamil Nadu, India. The plant is now back up and running following minor damage from flooding. The operation extracts garnet and ilmenite from beach sand deposits.

Damage is also limited in Andhra Pradesh, and construction of a dry mineral sands milling plant in that region of India is progressing well, with completion anticipated by mid-2005.

WGI also has operations in Sri Lanka, where it recently received lands from the government for construction of mineral sands processing plants. The land is 3 km inland from the ocean, thus escaping any major damage.

Being near the front line of the tsunami devastation, the company was able to assist residents of southern Tamil Nadu by supplying food and safe drinking water.

In addition to its Indian garnet and ilmenite operations in India, WGI operates the Emerald Creek garnet project in Idaho. Garnet is an industrial mineral used in electronics, water filtration, and extensively as an abrasive.

The company has 24 million shares outstanding and recently traded at $5.