2002-02-04 ASX Announcement
Scoping Study - Tantalite Project - NPV A$169
Million
On 22 January 2002, Gippsland Limited ["Gippsland"
or "the Company"] released the results
of the resource estimates for Abu Dabbab tantalite
as follows:
|
CATEGORY |
TONNE |
GRADE |
CONTAINED
METAL |
| |
|
Ta2O5
|
Nb2O5 |
Sn |
Ta2O5
|
Nb2O5 |
Sn |
|
Measured |
12.00
M t |
274
g/t |
126
g/t |
0.130
% |
7.247 M lb |
3.333
M lb |
15,587
t |
|
Indicated |
2.1
M t |
260
g/t |
91
g/t |
0.16% |
1.18 M lb |
0.41
M lb |
3,340
t |
|
Inferred |
26
M t |
240
g/t |
110
g/t |
0.06% |
13.7
M lb |
6.4
M lb |
16,400
t |
|
Total
All
Categories |
39.9
M t |
252
g/t |
116
g/t |
0.089% |
22.1 M lb |
10.2
M lb |
35,300
t |
Note: minor mismatch in totals due to
rounding of tonnes and grade
The estimate, which involved a complete reassessment
of all of the available geological data generated
from past exploration programs, brought the resource
categories into line with the JORC Code. The resources
were determined by wire-frame constrained ore
block modelling at a cut-off of 0.01% Ta2O5 (tantalum
pentoxide).
Following the above resource determinations,
and in preparation for the commencement of the
bankable feasibility study, the Company has undertaken
a scoping study to determine the likely economics
of the project. The Directors have endeavoured
to complete this study in a conservative manner
utilising prices for the commodities produced
i.e., tantalum pentoxide (Ta2O5), niobium pentoxide
(Nb2O5), tin (Sn) and micronised feldspar, at
current or at less than current international
prices.
The study was based upon a mining rate of 1 million
tonnes per annum for a period of 15 years. However,
as the combined measured, indicated, and inferred
resources total some 40 million tonnes, it is
likely that the mine life will exceed 15 years
by a considerable margin. Costs have been determined
in accordance with generally accepted open pit
mining parameters while the process recovery efficiencies
employed are in line with past extensive metallurgical
testwork and similar ore processing operations
located within Australia and overseas.
|
Initial
Mine Life |
15 years |
|
Ore
Treated per annum |
1
million tonnes |
|
Production
per annum |
196,000
kg (430,000 lbs) Ta2O5
91,000 kg (200,000 lbs) Nb2O5
524 tonnes tin (Sn)
480,000 tonnes ceramic grade feldspar |
|
Mining
& Process Costs |
US$14.50/tonne |
|
Net
Revenue to Gippsland |
US$239
million over 15 years or
A$32 million per annum |
|
NPV@10%
(Gippsland's Interest) |
US$84.5
million or
A$169 million |
|
Capital
Expenditure |
US$30
million |
|
IRR |
56% |
Note: The NPV and IRR values above refer to Gippsland's
interest.
While the above determinations are based upon
a number of estimations and assumptions, the Directors
consider the results to be most encouraging and
provide justification to commence the bankable
feasibility study at the earliest opportunity.
The Company is presently considering proposals
from a number of companies wishing to undertake
the feasibility study. It is expected that one
such company will shortly be appointed to undertake
this task, which is expected to commence during
February of this year.
John (Jack) Telford
Executive Chairman
Note: In accordance with Listing Rule 5.10 of
the Australian Stock Exchange Limited, the geological
information in this report that relates to mineral
resources and ore reserves is based on information
compiled by Gippsland Director Dr John Chisholm,
who is a Fellow of the Australasian Institute
of Mining and Metallurgy, with over 25 years experience
in the mining industry.
ASX 02.02.04 |
