DRAGOON, Ariz., March 5, 2004 (PRIMEZONE) -- Nord Resources Corporation (Pink Sheets:NRDS) is pleased to announce the appointment of Eric R. Ivey as General Manager of the Corporation's Johnson Camp mine and Rex E. Loesby as Director of Corporate Development.
Mr. Ivey brings to Nord Resources 29 years of mine operations experience. Mr. Ivey has held positions with Phelps Dodge, Arimetco, Inc. and Southern Peru Copper Corp. where he last served as General Manager of Production and was responsible for an annual operating budget of over $225 million. He has successfully supervised the start-up of an $80 million copper refinery and implemented environmental compliance for two large copper concentrators. Mr. Ivey is a graduate of the University of Arizona.
Mr. Loesby has nearly 30 years of minerals industry experience and has held senior positions with Sierra Minerals Corporation, Nord Pacific Limited, Colorado Yule Marble Company, Cascade Engineering, Inc., Rocky Mountain Energy Company and Climax Molybdenum Company. He holds both a B.S. degree in Mining Engineering and an M.B.A. with emphasis in Finance and International Business from the University of Washington.
Activity Update
Nord Resources has closed on the option agreement to acquire the Coyote Springs porphyry copper-gold property located near Safford in Graham County, Arizona. The Coyote Springs Property is a significant, large tonnage porphyry copper-gold exploration target with exposed, surface copper oxides and considerable potential for deeper copper sulfides. Coyote Springs is situated immediately north and adjacent to the Phelps Dodge Corporation Safford Project which has been determined by the US Geological Survey to be the largest undeveloped porphyry copper mining district in the world with proven undeveloped reserves.
Nord Resources continues with its financing efforts to restart the Johnson Camp copper mine and is holding extensive discussions concerning both debt and equity finance options and expects to announce significant developments concerning financing in the very near future. In this regard, our previously reported engagement of IBK Capital has been terminated recently, and we are considering investment banking opportunities with a number of firms specializing in the mining sector. Once definitive agreement is reached we will publish a release containing more specific information about it.
Other Interests
Nord Resources Corporation owns the Johnson Camp SX-EW copper mine in Arizona. The mine is currently on care and maintenance. According to the Johnson Camp Feasibility Study conducted by The Winters Company, the project can be returned to production in approximately eight months from receipt of necessary financing. Actual production of 99.999% copper cathode can begin in three months of a restart. The Feasibility Study concluded that the Johnson Camp heap leach copper mine can be operated profitably and will generate noteworthy cash flows at current copper prices which recently touched eight year highs.
In addition, Nord Resources has an interest in Nord Pacific Limited (Pink Sheets:NORPF). Nord Pacific is involved in the Simberi Gold Joint Venture located in Papua New Guinea and has recently agreed to a Plan of Arrangement with Allied Gold Limited, an Australian company, under which Nord Pacific will be acquired by Allied Gold. Upon conclusion of the Plan of Arrangement, Nord Resources will own approximately 5 million shares of Allied Gold.
Nord Resources also owns a 2.5% royalty interest in Sierra Rutile Limited, which, based on current information, is slated to resume production of titanium dioxide in 2004. At one time, this project represented over 50% of the entire exports of Sierra Leone.
This release includes certain statements that may be deemed to be "forward-looking" statements within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements released, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Corporation expects, are forward-looking statements. Although Nord Resources Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include metals prices, exploitation and exploration successes, availability of capital and financing, and general economic, market or business conditions. Nord Resources Corporation does not undertake any responsibility to update the forward-looking statements in the future.