Asian Mineral gets Ban Phuc mining licence

Vancouver – With receipt of a mining licence for its Ban Phuc massive sulphide nickel deposit in northwestern Vietnam, Asian Mineral Resources (ASN-V, AIERF-O) can now move to construction phase.

“We will now proceed to develop the project, targeting mine production commencement in early 2009,” said Asian Mineral president and CEO Rob Thomson in the company’s announcement.

Through its 90%-owned subsidiary Ban Phuc Nickel Mines, Asian Mineral Resources has been advancing the project over the past decade – completing a positive feasibility study in late-2005 reviewing an underground mining operation and conventional sulphide flotation plant to produce nickel and copper concentrates.

The study tabled proven and probable reserves of just over 1 million tonnes at 2.4% nickel, 1.0% copper and 0.08% cobalt providing ore-feed for a mine life of 5.5 years.

The roughly 600-tonne-per-day operation has a revised capital expenditure estimate of about US$62 million. A recently updated technical report projects generated cash flow of about US$282 million (after tax) over the mine’s life span.

Using a 10% discount rate, the June-2007 economic analysis update also projects a pre-tax net present value of US$192.2 million, a 137% internal rate of return and a 9-month payback.

Vein-type massive sulphide mineralization at Ban Phuc is associated with a shear zone occurring in a suite of meta-sedimentary rocks in the footwall of the Ban Phuc ultramafic intrusive.

Ban Phuc also hosts a larger zone of disseminated nickel sulphide mineralization containing almost 40 million tonnes of 0.42% nickel using a 0.3% nickel cut-off grade.

The remaining 10% of the project is owned by the Mechanical Engineering Company of Son La Province.

With a mining licence in hand, Asian Mineral has also lined up a $20-million non-brokered financing to fund the upcoming construction phase. It plans to sell just over 11.4-million units at $1.75 apiece to an Asian investor. Units will be comprised of a common share plus 0.595 of a warrant. Full warrants are exercisable at $2.10 until April 30, 2008.

Shares of Asian Mineral perked up 12% on the news, gaining 17 to close at $1.62 in December 17th trading. The stock has a 52-week trading range of 91-$3.00.