ABBOTSFORD, BC, Jan. 7 /PRNewswire-FirstCall/ - ICS Copper Systems Ltd. (ICX:TSX.V)
Following an evaluation of the NI 43-101 Report prepared by Coffey Mining on the sulphide mineral resource, and a verbal report from Coffey Mining on the oxide drilling program, the Board is of the opinion that the grade and the tonnage of the sulphide resource and oxide deposit will not support a mining operation and that further drilling will not significantly increase tonnage and grade. Results of the evaluation of the sulphide resource and the 43-101 report prepared by Coffey Mining have previously been reported on and Coffey Mining advise that 'results of the mineral resource modeling have indicated that there will be insufficient tonnage and metal concentration and recoveries for the project to be viable.'
The Board has therefore decided to abandon the Mokambo project. Further expenditures will therefore be minimized and the option agreement with NW Plant Hire has been terminated through an intentional default. The equipment currently on site will be dismantled and stored on company owned property located at Murundu, approximately 6 kilometers from the Mokambo Site pending redeployment.
The capitalized mineral property expenditures and non-moveable equipment related to Mokambo totaling $7.9 million at October 31, 2008 will be written-off in the Company's 2nd quarter financial statements to January 31, 2009 and the necessary material change filing with the BCSC will be undertaken.
President and CEO of ICS, Graham Chisholm comments: 'This was a difficult decision which followed the disappointments coming from delays in the drilling program and results that were poorer than what we anticipated. We believe that abandoning the Mokambo property is the right decision and in the best interests of our company. We look forward to moving on to new projects which include two separate tailings projects that have recently come to our attention.'
Kathleen Body, Pr.Sci.Nat., of Coffey Mining and an independent qualified person under NI 43-101, has approved the information in this news release.
Tailings Opportunities
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The Company has been approached by two different investor groups to
consider developing separate tailings projects in the Kitwe area using the
Company's EMEW electrowinning equipment, crushers, acid tank storage,
generators and other mobile equipment and the Company's management and Board
is currently assessing these opportunities.
AGM and New Board Structure
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The Company's AGM took place on Dec 29th at 10:30am.
