VANCOUVER, B.C., Dec. 17, 2002 (PRIMEZONE) -- Alchemy Ventures Ltd. (TSX Venture Exchange:ALY) wishes to provide the following summary of activities.
Property Agreement - Mining Lease Applications
As previously reported, the Company executed a property agreement in August of this year resulting in the lease applications underlying the Helmer - Bovill property located in Latah County, Idaho being transferred to the Company's subsidiary, AlchemyKaolin, Inc. The TSX Venture Exchange (the "Exchange") is currently reviewing this agreement between the Company and the property vendor. The Company is working diligently with the Exchange and expects to obtain Exchange approval early in 2003.
Senior management of the Company has had a number of very productive meetings with both the State and county related to the Helmer - Bovill lease applications. As a result of these meetings, it is management's belief that upon Exchange approval of the property agreement, the State will move forward on completing the lease application process resulting in the issuance of the Mining Leases for the Helmer-Bovill property.
Helmer - Bovill Property Developments
Over the past several months the Company has completed several important milestones on the Helmer - Bovill property. A highly experienced Ph.D. geologist with extensive industrial minerals background has recently completed a detailed mapping and sampling program. The company has also compiled and reviewed additional previous work. This work has resulted in the identification of factors defining the boundaries of the residual clay deposits and has significantly expanded the limits of the residual clay resource. The residual clay deposits are the host and source for feldspar, quartz and kaolin clay within the Helmer-Bovill basins. The Company is encouraged by the year to date results. The results of the work will be an important guideline for further resource development.
As part of the ongoing evaluation program, a number of samples have been taken from drill cores, a previous mine location and outcrop locations. This latest round of samples complement the sampling taken in the summer of 2002 and were sent for laboratory feldspar analysis. Results from this laboratory work conclusively demonstrate that a high quality commercial grade feldspar product can be produced from the Helmer - Bovill residual clay deposits. Sampling does not cover the entire basin but management is very encouraged by these results. Samples taken from a previously mined area were particularly encouraging because the sample represents a large tonnage of resource material. The preliminary flow sheet work completed to date indicates that the feldspar can be economically recovered using standard industry practice.
During the review of previous mining efforts, records indicate a paper filler and a refractory grade kaolin were produced from the Helmer - Bovill properties. While documentation is limited, management is encouraged by the previous clay production. Characterization of the clays for commercial grade products will be ongoing and cover a wide range of product applications.
Transportation and Marketing
During the current quarter management has reviewed a number of transportation alternatives and prospective markets for mineral products that have been identified within the Helmer - Bovill property. The property's favorable proximity to rail, highway and water transportation systems is an important attribute. Transportation logistics are very favorable creating shipping advantages in serving the Pacific Rim and Pacific Northwest markets.
A market study has been initiated to identify users of mineral products that could be produced from the Helmer - Bovill property. A large base of potential customers has been identified in several significant industries. Preliminary discussions have been initiated with select potential customers that might have an interest in the Company's feldspar products. So far, a favorable response has been received.
Conclusions
Management is very encouraged with the results to date. Work to date has conclusively demonstrated a high quality commercial grade feldspar product can be produced. Previous work has documented kaolin products can be produced. The next phase of work is aimed at quantifying the resource and systematically characterizing the minerals that have been targeted as part of the potential resource. A number of parties have expressed an interest in assisting the Company in financing the next phase of the project work. In a related matter, the Company has agreed to a terms on a $52,625 loan with a non-arms length party that includes the issuance of 55,000 bonus shares. Additional details will be released when negotiations complete.
Other
The name change process and continuance to the federal jurisdiction of Canada are ongoing. Both processes are expected to complete in the first quarter of 2003.
Skyview Commerce Group is continuing to provide investor relations services to the Company. Interested investors can contact Gary Deathe, President of Skyview at 866-827-4424 located in Toronto ON or Barry Girling at 877-303-6573 located in Vancouver BC. All investor relations for the Company should be directed through Mr. Deathe and Mr. Girling.
Alchemy Ventures Ltd.,
"Roger A. Kauffman"
Roger A. Kauffman, President & CEO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release