2001-10-03
PRESS RELEASE
Gippsland signs new Egyptian
tantalite deal
WA exploration company Gippsland Limited has
secured 50 per cent ownership of a 48 million
tonne Egyptian tantalite deposit.
The company announced today that it had entered
into an incorporated joint venture with the Egyptian
Government in the highly significant Abu Dabbab
tantalite deposit, and was now moving quickly
to prepare a bankable feasibility study.
The Egyptian Government, which previously held
100 per cent ownership of the Abu Dabbab tantalite
deposit, will participate in the joint venture
through its statutory body - the Egyptian Geological
Survey and Mining Authority (EGSMA).
The joint venture will establish a new joint
venture company, Tantalum Egypt, which will be
equally owned by EGSMA and Tantalum International,
a 100 per cent owned subsidiary of Gippsland Limited.
Under the deal, Gippsland will bring to the project
its exploration, production, technical and mining
technology skills.
Tantalum metal (derived from tantalite) is a
high technology material used in the production
of miniature high-efficiency electronic capacitors
and in a variety of specialty metal alloys used
in the chemical and aerospace industries. Tantalum
capacitors are in high demand because they are
an essential component of cellular phones, pagers,
computers, video game systems and numerous other
popular electronic products.
The metal is valued for its high electrical capacitance
per unit of volume, strength and resistance to
chemical corrosion. Gippsland Limited Chairman
Jack Telford said Abu Dabbab had been explored
in two stages; in great detail in the 1970s by
EGSMA and GIREDMET Geological Research Institute
(Moscow) and again by a joint EGSMA-Geominera
Italiana geological expedition in the early 1990s.
These exploration programs included detailed
sampling, drilling, trenching and the construction
of four adits totalling 736 metres. The studies,
which included comprehensive metallurgical testwork
in Moscow and Italy, would have a present day
cost in excess of A$6.0 million. The Abu Dabbab
resource is exposed as a hill (130 metres above
surrounding terrain) with the entry to the four
adits located at the base of the hill. The deposit
is open at depth having been drilled to only 150
metres below adit level.
The Russian exploration determined that Abu Dabbab
contained 48 million tonnes at a grade of 274g/t
tantalum pentoxide. The later Italian exploration
focused on further exploration of the exposed
hill where an above adit reserve of 7.28 million
tonnes at 250g/t tantalum pentoxide was delineated.
Mr Telford said Gippsland Ltd was currently undertaking
a detailed review and computer-generated synthesis
of all of the data from previous exploration work.
Gippsland's geologists are currently reassessing
the Abu Dabbab resources and reserves to bring
them into line with the JORC Code classification
"The review will also entail a review of
all past metallurgical testwork and specialised
engineering studies," Mr Telford said.
The Italian calculated reserve of 7.28 million
tonnes, located within the 130 metre high hill,
will facilitate easy mining access and an expected
favourable strip ratio of less than one. Abu Dabbab
it is located close to existing air, sea, road
and rail links. Mr Telford said while the deposit
was well identified and readily accessible, we
recognised two significant additional factors
that would greatly enhance the value of Abu Dabbab.
Firstly, the Abu Dabbab mineralisation contains
50-70% feldspar, which will be processed as part
of the tantalum pentoxide stream. The demand for
feldspar has shown strong and steady growth during
the last decade with current prices for ceramic
grade material being in the order of US$70 per
tonne.
The second contributing factor had been the recent
advances achieved in gravity separation technologies,
particularly when applied to the type of mineralisation
found within the Abu Dabbab deposit.
Mr Telford said the development, testing and
robustness of the new technology had only occurred
in the past few years and was only now being used
as the accepted technique used by most of the
advanced and sophisticated tin and tantalite miners
in the world.
"The economics of this project improve dramatically
as a result of the recently developed technology,"
he said. "Such technology will be brought
to this joint venture and used in the exploitation
of the Abu Dabbab deposit."
The project will proceed under the banner of
Egyptian Law No 8/1997 - Investment Guarantees
and Incentives, which provides for numerous benefits
including free export trade of products, maximum
of 5% customs import duty plus an exemption from
a number of taxes including stamp duty and land
taxes. The provisions of Law No. 8/1997 will also
enable Tantalum Egypt to enjoy a twenty (20) year
exemption from profits taxation.
Media contacts:
John Telford, Executive Chairman, Gippsland
Limited, (08) 9389 8611 or
John Cole, Professional Public Relations, (08)
9322 4355
ASX 01.10.03 |
