(TSX-V:EML), (the "Company”) is pleased to announce that significantprogress has been achieved over the last 4 months in Brazil and the Company is now ready
to commence drilling on its key Matapi iron property.
On August 29, 2008, the DNPM approved the transfers of 11 concession titles comprising
69,123.52 hectares to the Company’s new joint venture subsidiary, Ecometals Ferro do
Amapá Ltda which were previously held by Alto Tocantins. Fran Scola, Chief Executive
Officer of Ecometals added, "With the DNPM’s approval in hand, the Company now holds
secure title over its iron concessions and can aggressively explore the numerous iron targets
defined within the concession area by the airborne magnetic survey and previous exploration
programs undertake by the Company“
The Company intends to sign a diamond drilling contract with Greiphil Minas Ltda. to
undertake a 2000 m program designed to test several zones of outcropping iron
mineralization and high priority magnetic anomalies. The program is expected to start in late
September and will comprise 15-20 short angled holes. The Matapi iron prospects are
located 90 km north-northwest of the capital city of Macapa in the State of Amapa. The
logistics in the Matapi area are excellent with close access to the State paved highway and
railroad which both terminate at the Port of Santana. An adequate supply of power and
water are readily available in the Matapi concession area.
Ecometals, through Fugro Airborne Surveys, over the past three months, has completed
28,100 line km of airborne magnetics and over the Company’s twenty one iron ore and
manganese concession areas in the State of Amapá. The survey commenced production on
June 12th and was completed on August 26th. Final products will be available by lateSeptember and will be used to refine the drilling program. The Airborne Survey will be
complimented by the company’s own ground magnetic survey covering iron mineralization
intermittently exposed at the Matapi iron prospect and its extension to the northwest on the
Greiphil concessions. The ground magnetic survey covers 15 km2 and was completed late
August. Ecometals reported approximately $9.4 million of cash and cash equivalents as of
June 30, 2008, which management believes is sufficient to execute its current exploration
programme in Brazil.
Ecometals believes the Amapa State has substantial iron ore potential and has entered into
discussions with four private companies and one public company that control concessions in
the State of Amapa which host iron mineralization. Preliminary in-house geophysical
interpretations were completed for the five areas of interest. To date no joint ventures have
been completed but discussions are on-going.
Fran Scola also commented “This is a clear positive outcome in the company’s strategy
towards the development of its iron ore prospects, and in addition the company continues to
focus on a similar positive outcome with regards to its manganese projects in the next
quarter.”