Operations Update

RNS Number:7880K
Investika Ltd
23 October 2006

INVESTIKA LTD

OPERATIONS UPDATE

23 October 2006

Investika Ltd (AIM : IVK), the investment company in the mining finance industry
with a focus on pre-production emerging resource opportunities, wishes to inform
and update the market on the following activities which have been carried out
during the quarter ended 30 September 2006.

Chilean Copper Projects (Direct and indirect interest 64%)

Project Las Pascualas

The infill drilling program was completed at Pascuala North as well as three
scout drilling programs at Pascuala South and East, Llano Corredores and Breccia
East. The Pascuala North drilling comprised 56 reverse circulation holes
totalling 6,305 metres on a 100 x 100 metre grid pattern. Prior to the
commencement of this infill drilling, a JORC compliant Inferred Resource of
13.87 million tonnes of 1.01% copper was assessed in the enrichment zone. This
enrichment zone is overlain by a copper bearing oxide zone which is also
presently being evaluated.

A geological model of the Pascuala North deposit was generated and given to SRK
Consultants (Santiago, Chile) to undertake an external resource block model and
ore estimate. This work is planned for completion in October and is expected to
increase the resource tonnage and upgrade it to Indicated category.

The scout drilling at the other four nearby prospects comprised 25 holes
totalling 4,111 metres. Assay results from this drilling have been received and
are currently being reviewed.

Funds were approved for a three month Scoping Study for the supergene
(enrichment) zone of the Pascuala North deposit to confirm project viability.
Such a study will comprise all key disciplines - mining, processing,
infrastructure and services, environment and financial evaluation - with the
majority of the work undertaken by external Chilean consultants. Although the
environmental component will commence in October, the bulk of the study work is
planned to commence in November.

Scopes of work have been issued to, or proposals have been received from
requested parties for all study components. The award of work for the
processing and environmental component has been made. A review of responses for
the mining and infrastructure and service work and the award of such work is
planned to take place this month.

The extensive metallurgical leach test work program that will define the
material's amenability to leaching continued with a progress report scheduled in
the December quarter.

The technical information contained in this section of the announcement has been
reviewed and approved by the following qualified person : Roger Shakesby, a
Member of the Australasian Institute of Mining and Metallurgy and the Geological
Society of Australia.

Berong Nickel Project, Philippines (18.7% Direct interest)

Rapid progress has been made on the laterite nickel project with activities
focused on the construction of the mine and associated infrastructure in
preparation for the shipment of a 30,000 dry metric ton (dmt) bulk metallurgical
sample. This is then expected to be immediately followed by full commercial
operations.

At quarter end, construction has been completed for the temporary causeway, fuel
facilities, water facilities, and the mine and coastal accommodation/office
facilities. Construction is approximately 80% complete for the coastal stockpile
pads and associated silt ponds, and the widening of the Sorex road. In addition,
eight navigational buoys have been placed along the 50km shipping channel, and
two mooring buoys placed immediately offshore from the causeway. Clearing,
topsoil removal and bench forming, under Leighton Contractors (Phil), has
commenced in the bulk sample area of approximately 4 hectares.

The trial bulk metallurgical sample was expected to be extracted in mid-October
with shipment to customers in China in late October or November, however, very
heavy rainfall associated with two typhoons in late September/early October will
cause a two week delay to this. Commercial operations are expected to commence
in November/December and are dependent upon attaining the necessary final
approvals from the Philippine Government. A project report on planned operations
is currently being prepared for approval by the relevant Government agencies.
This report is necessary to obtain the 'commercial' Mineral Production Sharing
Agreement (MPSA). A commercial MPSA differs from a standard MPSA in that a
standard MPSA does not automatically allow commercial production to commence.

As previously reported, and aside from the bulk metallurgical sample of
approximately 30,000 dmt at 1.7% nickel, an export target of 80,000 to 90,000
dmt of ore has been set for 2006, 620,000 dmt for 2007, and 1M dmt in 2008 and
beyond. The grade of laterite ore to be mined in the first year of operations is
estimated to average approximately 1.9% nickel. Some shipment grades above 2%
nickel can be expected in the early years.

Potential customers for the laterite ore have been identified in China, Japan,
Europe and Australia. Negotiations continue with BHP Billiton/QNI on the long
term supply of up to 500,000 tpa ore. Very strong interest continues to come
from potential Chinese and Japanese buyers. Chinese customers show a keen
interest in laterite ore grading as low as 1% to 1.2% nickel for their new "
blast" furnace process, while Japanese customers are seeking laterite ore
grading above 2% nickel.

Snowdens Mining Industry Consultants (Snowdons) in Perth is currently preparing
a JORC compliant ore reserve for the MPSA area. This is expected to be released
next quarter and will incorporate all the test pitting and drilling undertaken
since late November 2005. Approximately 70% of the MPSA area has now been
covered with test pits or drill holes at a spacing equal to or less than 50m,
which is likely to be classified as 'measured' or 'indicated' ore based on
previous work performed by Snowdens, and on the nature and style of
mineralization.

Options analysis and costing for future value-added processing of the laterite
ore continued throughout the quarter covering pressure leaching, vat leaching,
ferro-nickel smelting, and the Chinese "blast" furnace process technology.
Samples for metallurgical leach testing are currently being prepared for
shipment to laboratories.

Ongoing field exploration/evaluation activities continued in parallel with the
construction activities and involved the testing of the ore extensions within
the MPSA area. Key achievements include-

Quarter Ended Total Program
30th September 2006 Since Commencement

Test Pits - Re-sampled 29 1120
- # samples 258 (207 metres) 7731 (6855 metres)

Test Pits - Re-deepened 62 367
- # samples 431 (346 metres) 1680 (1435 metres)

Test Pits - New 24 107
- # samples 144 (142 metres) 788 (738 metres)

Drilling - # Holes 103 510
- # samples 1099 (937 metres) 6407 (6031 metres)

Lines Cleared - kms 95

GPR Survey - kms 55

Density Measurements - # 313 313

Infill drilling and new test pitting continues to validate the higher nickel and
cobalt grades established from the re-sampling of the old test pits, and also
continues to confirm the continuity of laterite mineralization within the MPSA
area.

The technical information contained in this section of the announcement has been
reviewed and approved by the following qualified person : George Bujtor, a
member of the Australasian Institute of Mining and Metallurgy.

Belitung Zinc/Lead Project, Indonesia (42.5% indirect interest)

The excavation of some 2,000m of new trenching was completed and is in the
process of being mapped. The rehabilitation of two adits was completed.

Two bulk samples of material, weighing approx. 40kg each, were taken from the
mineralized zones in the adits and are in transit to a metallurgical laboratory
in Tasmania for assaying of metal content and the assessment of recovery
potential.

Work continued on tenure reorganization with both the federal and provincial
government authorities.

UMC Energy plc (19.6% interest)

At the end of the quarter, UMC Energy plc reached agreement with Cline Mining
Corporation of Canada to acquire an 80% interest in URAMAD S.A., which has
uranium exploration prospects in Madagascar.

The exploration permits, which have been granted for 10 years expiring in 2015
and 2016 are located in the Morondava Basin which is infilled and layered with
sediments, most notably the Karoo formation that hosts uranium mineralization.

The areas were previously identified and explored during the uranium cycles of
1956 to 1963 and 1979 to 1982 by the United Nations (PUND) and the Office of
National Mines and Strategic Industries, a Malagasy state body, (OMNIS)
respectively. Later, the French uranium company Cogema took on large permits
and continued regional exploration that terminated in the late 1990s with the
down-turn in uranium prices and demand.

URAMAD S.A. is the owner of a data base for the Morondava Basin that includes
the results of airborne geophysical and radiometric surveys, drill logs for 790
drill holes (approximately 83,000 metres of drilling) with indicated uranium
values, and visible uranium mineralization associated with targets picked from
7,000 radioactive anomalies, recorded and plotted.

Enquiries to:

Chrisilios Kyriakou, Chief Executive Officer

Investika Ltd

Telephone: 020 7514 1480

Paul Dudley/Peter Jackson

WH Ireland Limited

Telephone: 020 7220 1666

This information is provided by RNS
The company news service from the London Stock Exchange
END

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