newsreleasePress Release - Monday, April 3, 2006
Sabah Tavai Nickel Project Applied For by Tiger International
Patric Barry, President of Tiger International Resources (TGR.V), announces that the company has applied to the Government of Sabah, Malaysia, for a Prospecting License (PL) over an area known as the Tavai Nickel Project, a 21 sq km area that contains economic reserves of Laterite Nickel, Cobalt, and associated minerals. Known as the Tavai Plateau, the nickel bearing area contains grades averaging 0.75% and 0.7% cobalt. Tonnage is estimated at 270 million tonnes.
The area of interest is comprised of 21 sq kms of lateritic nickel which can be mined by open pit methods with low costs and is straightforward. Located in central Sabah, the site is 27 kms from the major highway that traverses the state and has a rural highway intersecting the project, affording good access. Water and electricity is plentiful.
The originally applied for site was 102 sq kms and was previously held by a major Malaysian mining company which relinquished it to the government in 2002 after which Tiger first applied for the project, then Tiger reapplied in 2005. After meetings last week with the Sabah Chief Minister and all major department heads in Sabah, Tiger is amending the Application to more accurately define the area of mineralization since part of the original area requested may have contained Class One Forestry, a potential habitat for Orangutan. Tiger management last week conducted a site inspection and verified that the area of mineralization is Class Two Forest, and intends that by eliminating the non-core areas from the PL Application that the PL Application will be approvable. Tiger will provide detail of anticipated investment, economic benefit to Sabah, employment projections, and rehabilitation details in the amended Application. The benefit to Sabah from this proposed mine will be highly significant.
The granting of Licenses in Sabah is governed by the Natural Resources Department which supports Tiger’s Application for the Tavai Nickel Project and has recommended it for approval to the Chief Minister. Of importance is that the Department head confirmed to Tiger last week that their policy is that any License applicant is protected should any subsequent application be made by any other party over the same area. This reassures Tiger that its Application gives the company priority and protection should any later competing Application be submitted.
Tiger possesses prior exploration data which establishes (subject to audit) that an economic and proven resource exists at Tavai. Upon approval of the License Application, Tiger intends to audit the data and to perform additional site drilling to validate the prior data, and will produce a 43-101 compliant report and obtain an independent valuation on the property. Upon completion, Tiger will proceed to a full feasibility study, after which it intends to apply to the Government of Sabah for a Mining License. Tiger will seek financing to place the project into production, as appropriate. Logistics and technology for a nickel separation plant will be studied, and the feasibility for construction and operation of a nickel smelter on Sabah will be examined as part of the feasibility study. The Sabah Government, as a condition of issuing a License, requires the right to be able to invest in the development of the project and to earn up to a 30% equity ownership. Tiger will hold 100% interest, subject to this condition. An undetermined royalty is payable to the Government of Sabah.
The size of this development is a major investment for Sabah and Tiger International Resources. A typical mine of the projected size offers projected employment of over two thousand mine employees, and the royalty alone will be a major economic contribution to the state economy. While sentiment is strong to protect the rainforest environment of Sabah, and while we sense Government concern that mining and the environment may not be harmonious, Tiger is convinced that the straightforward nature of the project will allow us to demonstrate that the site can be mined without environmental risk and that the outcome will provide raw materials for future industrial development in Sabah, as well as supporting the State budget through employment and our payments of royalties, taxes and social benefits. Additional benefit to Sabah will be derived from the rehabilitation of the property which will ensure its suitability for other uses, including possible aquaculture by local residents, forestation with a tree farm to provide lumber, or from agricultural uses by local farmers.
Questions relating to this press release may be directed to Patric Barry, President of Tiger International Resources at (949) 362.1600 or email to 26981@sbcglobal.net. Tiger International is listed on the TSX Venture Exchange under the code TGR.V and the Pink Sheets as TGILF.