RENO, NV--(MARKET WIRE)--Jan 17, 2008 -- AAA Energy Inc. (OTC BB:AAAE.OB - News) (Frankfurt:AAV.F - News) (WKN: A0MUFJ) announces that it will drop further interest in its Salal Creek/Float Creek moly prospect (see news release dated September 18, 2007). Although the Company remains committed to molybdenum as a commodity, the Salal Creek Prospect was found not to fit into the Company's future plans. Instead, the Company will concentrate on China molybdenum prospects whose initial evaluations were positive in a recent trip to China by its President Dr. Earl Abbott (see news release dated December 12, 2007). Prospects evaluated by Dr. Abbott will be discussed in forthcoming news releases.
Recent due diligence by the Company on the Salal Creek Prospect disclosed that the property's location, some 70 kilometers north of Pemberton, B.C., is difficult and remote with alpine conditions and extremely steep terrain containing snowfields and glaciers. Access would require building some 9 kilometers of new road through National Forest lands adjacent to National Parks making permitting difficult, expensive, and time consuming. Although helicopter drilling is feasible and has been done before by other companies, the potential highly mineralized zone will require deep drilling and much bigger equipment requiring road building.
The molybdenum-bearing portion of the Salal Creek Prospect is part of a copper-molybdenum porphyry system and is not consistent with AAA Energy's target of a clean, molybdenum-only system like the world-class Climax-model molybdenum system that is AAA Energy's target.
Finally, with its US-based management team and logistics as well as related regulatory difficulties in managing and working on BC geological interests, it would be considered not in the best interest of the company to focus on a property considered inferior to the company's current roster of molybdenum prospects located principally in China, but with a few located in the United States.
China is the third-largest producer of molybdenum in the world, a specialty metal used for hardening steel. The white metal is valued for its anti-corrosive and strengthening properties and makes up two percent to ten percent of stainless steel. In 2004, China produced approximately 31,000 tonnes of molybdenum as compared with 30,600 tonnes in 2003. The country's identified reserves of approximately 8.55 Mt ranks second worldwide reserves. Three of the six largest producing molybdenum mines in the world are located in China: Luanchuan in the Henan Province, Daheishan in the Jilin Province (1.1 Mt); and Jinduicheng in the Shaanxi Province (970,000 t).
