TORONTO: Titanium Corporation Inc. (TSXV: TIC) today announces that an independent report on its Oil Sands Project has been completed by J.C. Whitcomb of Whitcomb & Associates, Pretoria, South Africa and filed with the Securities Regulatory Authorities. The Study included an assessment of the supply of oil sands tailings and their heavy mineral content and a review of Titanium Corporation's proposed mineral sands extraction process including design and location of facilities, product recoveries and logistics. Whitcomb & Associates also reviewed world market conditions for titanium and zircon feedstocks as well as the pigment and ceramics industries which consume large portions of these feedstocks.
Whitcomb & Associates states in the report that "the results of the Study indicate a commercially attractive project which should be pursued". The authors of the Study examined the capital and operating expenditure assumptions made for a plant of the scale being contemplated and found them to be reasonable. In addition, Whitcomb & Associates assessed the demand and identified the most probable markets and selling prices for the products Titanium Corporation anticipates producing. The report can be viewed in its entirety on SEDAR (System for Electronic Document Analysis and Retrieval) www.sedar.com .
Titanium Corporation continues to progress its business plan to become the first mineral sands producer in 2008 from Canada's oil sands with activity on a number of fronts. The extension of the exclusivity agreement with an oil sands producer and large pigment producer was recently announced (see press release dated April 26, 2005) and a small scale wet mill facility is under construction for installation in late Summer 2005 at the oil sands tailings site in Fort McMurray. The purpose of this plant is to confirm the design and engineering requirements for a full scale commercial facility. Titanium Corporation and the oil sands producer are in the process of finalizing fiscal terms with the Province of Alberta, the owner of the mineral sands resource. Titanium and zircon final products have been provided to the major pigment and ceramic industry firms who are currently conducting testing programs. Work by the Corporation's experienced mineral sands team is continuing at its commercial demonstration plant to optimize process design, and engineering firms in Canada and Australia are being qualified for the commercial facility design and construction.
"Titanium Corporation's Oil Sands Project is progressing very well at a time when the titanium dioxide (TiO2) industry is experiencing strong growth including double digit growth in demand from China. This demand growth is expected to continue and result in a shortage of high TiO2 natural feedstock in the time frame that our oil sands heavy minerals project will be coming on stream", says Scott Nelson, Titanium Corporation President & CEO.
Whitcomb & Associates is an Industrial Consulting Engineering company specializing in mining and logistics projects. Mr. Whitcomb is a Civil and Industrial Engineer with over 20 years experience in Project Management and Work Study in the Mineral Sands Industry. Whitcomb & Associates were involved in the studies of numerous heavy mineral deposits including Ticor South Africa's Hillendale, Fairbreeze and Wavecrest deposits, the evaluation of the Corridor Sands deposit, the evaluation of mineral sands deposits in Madagascar, as well as the evaluation of Namakwa Sands.
About Titanium Corporation
Titanium Corporation Inc. is a Toronto-based mineral development company whose shares are listed on the TSX Venture Exchange under the symbol "TIC", U.S. clearing symbol "TITUF", CUSIP Number: 88833T104. The Corporation's mission is to become the first titanium and zircon sand producer from Canada's oil sands. Through extensive research, including the construction and operation of a $5 million commercial demonstration facility, the Company has developed proprietary technology to recover valuable titanium-bearing minerals and zircon from oil sands tailings. For more information, please visit www.titaniumcorporation.com.
Disclosure regarding forward-looking statements
Note: This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations which are based on assumptions and are subject to a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These risks and uncertainties are more particularly described on page 24 in the Risk Factors section of Titanium Corporation's Annual Information Form which was filed on SEDAR (www.sedar.com) January 18, 2005, as updated by the Corporation's Annual and Quarterly Management's Discussion and Analysis. Most notably these risks and assumptions include risks associated with the market price of zircon and titanium products, costs of construction and operation of facilities, and assumptions about construction, timing and delivery. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.
For further information:
George Elliott, Chairman
(416) 955-0715 X 222
Scott Nelson, President & CEO
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