Buzz Inc. Announces Results of Preliminary Feasibility Study on The Lanna Project
January 06 2009 - 2:52PM
Marketwired
Buzz Inc. (the"Company" or "Buzz") (PINKSHEETS: BZTG),
www.buzz-inc.com, is pleased to announce that the preliminary
feasibility study on its Lanna Project Manganese deposit at its
property in Thailand has been completed.
The study was commissioned by the Company in November 2008 and
was performed by incoming and outgoing staff at the mine site. It
confirmed that the project is economically viable and also supports
an updated mineral reserve calculation and updated mineral resource
estimate on the property.
Lanna is the Company's prime exploration target for the
Manganese deposit which is located on the Company's Property in
Thailand.
HIGHLIGHTS OF THE REPORT ARE AS FOLLOWS:
Mineral Resources and Reserves
An initial updated Mn Ore indicated mineral resource estimate
for The Lanna deposit was reported in a news release previously
based on estimates from the negotiations of the site.
As a result of further in-depth analysis, the quantity has
changed; however, there have otherwise been no material changes to
the grades and quantities previously reported. The following table
summarizes the mineral reserves for The Lanna Mn Ore deposit,
effective January 6, 2009:
Mn 23-46%
MnO2 36-71%
SiO2 (Silica) 22-60%
Fe (iron) 1-3%
The estimated reserve of minable Mn Ore now sits at 6.1m mtu and
this is expected to increase as drilling commences.
Notes:
Rounding may result in some discrepancies. No processing
recovery factors have been applied to these reserve figures.
Assumptions and Methods: the team included the following steps
during calculation of the indicated resources at The Lanna
Project:
-- personal inspection of The Lanna Project property during 2008 - 2009;
-- database compilation and data validation;
-- geological interpretation and modeling;
-- compositing test intervals to a common length;
-- determination of average material density;
-- previous analysis of grade variability.
Data Verification: During numerous inspections of the The Lanna
Project properties (2008 to 2009) areas for immediate mining were
identified and a mining plan commenced.
RESULTS OF PRELIMINARY FEASIBILITY STUDY
The team completed the preliminary study in order to evaluate
the merits of extracting Mn Ore from The Lanna Project using the
reserve and resource base summarized above. The conceptual work
plan is to continue the current extraction methods (open cut) along
high quality mineralization, processing of ore and bagging on site
then shipping a commercial grade to overseas buyers, predominantly
in China. The preliminary feasibility study used a wide variety of
economic data to produce projected capital and operating costs
estimates, environmental and social considerations, mining methods,
processing technologies, permitting issues, taxation issues, and
commodity price trends, all of which became components of The Lanna
Project development economic model.
Assuming an Mn Ore price of $200 mtu and using the previous
methods and ship bagged Mn Ore during a two-year period, generating
$48m in revenue, with the initial profits funding more drilling and
exploration for Copper, Silver and Gold.
The mine would pay back capital costs in the third or fourth
quarter of the first year of development. Mn Ore Bags would be
produced at the mine site, thus creating early cash flow.
Maintaining Mn Ore quality for overseas markets is very important
to the success of the proposed development. Preliminary testing of
an area of The Lanna Project shows high recovery rates of Mn Ore.
Other impacting factors include rainfall, and metal price trends of
both Mn Ore and Iron Ore as well as global steel demand.
The mine plan contemplates deploying standard scrap, crush and
bag ore processing. When in full production the mill will process
up to 25000 mtu of Mn Ore per month; this would not occur before
year 3.
Cautionary Notes to Investors SEC's Industry Guide 7 standards
have not been applied, and many of the terms and concepts set out
in and used as information material to the Company are neither
recognized by the SEC nor included in or compliant with Industry
Guide 7 standards. Buzz Inc., as part of the process toward an IPO
in Hong Kong, released a draft Information Memorandum in 2008.
Buzz has through necessity and opportunity grown into a diverse
group of companies spanning a number of industries and countries.
Although on the surface it may not be immediately recognizable, the
businesses are in fact tied together in one clearly defined area;
they are all businesses that are technology dependent. Buzz has
pioneered the way in unleashing the full potential of technology in
the markets that have the least technological resources, the
emerging markets of Asia.
BZTG shareholders are entitled to 1 Buzz Inc. share for each
BZTG share held. The share capital of Buzz Inc. is exactly the same
as BZTG and the company has stated on numerous occasions there will
be no dilution of the share capital. The company has also remained
debt free and has only 1 class of share, no preferred shares and no
charges over assets or any other encumbrances.
Expansion has been made from revenue only.
About Buzz
Buzz Technologies, Inc. is a convergent media company with
operations ranging from infrastructure development to online
retail.
The foregoing press release contains forward-looking statements
based on the Company's beliefs as well as assumptions made by and
information currently available to the Company, including
statements regarding the timing of the introduction of certain
products. These forward-looking statements are based largely on the
Company's expectations and are subject to a number of risks and
uncertainties which are identified and described in the Company's
registration statements and periodic reports on file with the SEC,
some of which are beyond the Company's control. Actual results
could differ materially from these forward-looking statements as a
result of a variety of factors including, among others, issues
related to the travel and transportation industries, and prevailing
economic conditions in general. In light of these risks and
uncertainties, or should underlying assumptions prove incorrect,
there can be no assurance that the forward-looking statements
contained in this press release will in fact transpire or prove to
be accurate.
Beth Simpson Buzz Technologies, Inc. Tel: +66 87 272 1727
e-mail: beth@12buzz.com
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