BajaNomad

Baja Mining Updates Status of the Boleo Feasibility Study

BajaNews - 8-17-2006 at 10:44 PM

http://www.ccnmatthews.com/news/releases/show.jsp?action=sho...



VANCOUVER, BRITISH COLUMBIA -- (Aug. 17, 2006) - Baja Mining Corp. (the "Company") is pleased to announce that the Company is moving forward to establish the base line work required for an early launch of detailed engineering on its El Boleo Project, Baja California Sur, Mexico. Feasibility level engineering work on the process plant has been completed. Release of the final Definitive Feasibility Study (DFS) report will be delayed to accommodate an extension to the in-fill drill program.

The drill program is being extended due primarily to delays in obtaining additional drill rigs, but also due to encouraging results being encountered at depth at the south end of the property which will require additional footage.

The DFS requires sufficient reserves in the "Measured and Indicated" category for five years of production. The drill program has been successful in converting "Inferred Resources" to "Indicated Reserves" as expected (refer to news release dated July 21, 2006). The DFS portion of the drill program will be completed by the end of the first week of September and the resource model and final mine plan will be updated after assays are obtained. While these drill rigs are available, the Company will continue drilling to convert sufficient "Inferred Resources" to "Measured and Indicated Reserves" for the first 20 years of mine life, as required for bank financing. The continuation of drilling for bank financing will be complete by the end of November 2006.

Release of the final DFS report is now expected in the 4th quarter 2006 and the Company is proceeding with preparation for the next phase of project execution which is detailed engineering procurement and construction financing.





[Edited on 8-18-2006 by BajaNews]