June 28, 2006
http://www.manilatimes.net/national/2006/june/28/yehey/business/20060628bus11.html

ATLAS Consolidated Mining and Development Corp. has secured an environmental compliance certificate from the Department of Environment and Natural Resources for the company’s Berong nickel project in Palawan.

In a disclosure to the Philippine Stock Exchange, Atlas said it plans to develop the project initially as a direct shipping operation to ship “unprocessed high grade saprolite ore to international nickel smelters and unprocessed limonite to regional acid leach, ammonia leach and blast furnace plants.”

“Atlas has entered into an agreement with Toledo Mining Corp. (TMC) . . ., whereby TMC initially funds the development of the direct shipping project to earn an interest. In addition TMC has provided a $5-million convertible loan to Atlas to cover future funding contribution requirements by Atlas to the project,” the disclosure read.

The company said it has conducted confirmatory exploration and resampling program in the initial production plan since December last year.

“In total, 1,231 test pits and 259 diamond drill holes have been sampled, resulting in 11,945 samples being sent for assay,” it added.

Snowden, an international geological consultancy group, was tapped to recalculate reserves and
resources to international standards, based on the results of the confirmatory exploration program and is completing the mine production plan.

The company said the direct shipping operation will generate a significant cash flow for Atlas and TMC, particularly at current nickel prices.

“Part of the cash flow will be used to conduct feasibility studies into an onsite, large-scale smelting and/or acid leach operation,” Atlas said.

The company earlier disclosed that it has moved to settle the labor dispute with its terminated employees starting June 26.

The company said the move is another step for the reopening of the Toledo Copper Mine, which is capable of producing 42,000 metric tons of copper daily and has mineral resources reaching 873 million tons with a grade of 0.41-percent copper and used to employ 14,000 workers in the 1970s and 1980s.

Atlas also said it had settled its taxes due to the City of Toledo and announced a $40-million funding package with Crescent Asian Special Opportunities Portfolio (Casop).
–Cheryl M. Arcibal