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| |   Mon May 8, 2006
Black Bull Resources Receives Initial Orders for Scotia WhiteTM; Announces Q2 Results
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| | Black Bull Resources Inc. (TSXV:BBS) is pleased to announce that it has begun receiving orders for its unique, bright-white quartz which is produced at the Company's processing plant in southwestern Nova Scotia. These orders are a direct result of marketing efforts with its partner, U.S. Silica Company, and are for various targeted applications in the swimming pool industry.
An initial one hundred ton order has been produced and is in transit by rail to a U.S. customer with potential increasing need. A second order for two containers of Scotia WhiteTM quartz will be produced this week and shipped to another customer. Other potential customers are in final evaluation stages of their production samples and additional orders are expected.
The Company also announced management's completion of the preliminary kaolin resource development plan for the White Rock Property. The plan identified a timeline and the estimated costs to move this project through the permitting stage. The Board of Directors has reviewed this plan and has determined that proving the kaolin resource and conducting additional product characterization testing are required. Black Bull's first priority and focus, however, is still to establish positive cash flow from the quartz operation. Kaolin development will, therefore, continue to be reviewed regularly but not implemented at this time.
Black Bull Resources Inc. has released its Interim Report including the Financial Statements and Management Discussion & Analysis for the quarter ended March 31, 2006. The Company recorded a net loss during the quarter of ($741,506) vs. ($298,662) for March 31, 2005, or ($0.017) per share vs. ($0.007) for March 31, 2005. Allowing for non-cash operating expense of $195,201 compared to $58,124 for March 31, 2005, the Company's operational cash flow was ($546,305) vs. ($240,538) for March 31, 2005.
During the quarter, the Company continued processing customer-requested Scotia WhiteTM production samples. The entire operational costs for the period were expensed, and plant amortization began, resulting in increased costs of $271,261 compared to March 31, 2005. The Company's administration costs increased $91,026, and there was $20,478 less interest earned compared to last year. Black Bull increased its marketing efforts by $48,647 during the quarter.
About the Company
Black Bull Resources Inc. is a Canadian mining company based in Nova Scotia that operates the White Rock Mine near Shelburne. The Mine produces a bright-white, high-purity quartz, marketed under the Scotia WhiteTM trademark which is used in a range of value-added, specialty products. The White Rock Property also contains an identified resource of kaolin and mica which the Company plans to further develop.
Further detailed information may be obtained from the Company's website, www.BlackBullResources.com or corporate filings at www.SEDAR.com. For other Company information contact either:
Barry Grundy, President & CEO
Black Bull Resources Inc.
Tel: 902-875-1510
Fax: 902-875-1617
OR
Nick Kohlmann
CHF Investor Relations
Tel: 416-868-1079 Ext. 222
Toll Free: 877-838-1079
Fax: 416-868-6198
Email: nick@chfir.com
FORWARD LOOKING STATEMENTS: This news release contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation statements regarding the Company's mining properties, development results or future plans, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed elsewhere in documents that are available to the public.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. |
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