2002-03-26
ASX Announcement
Company Announcements Office
Australian Stock Exchange Limited
20 Bond Street
Sydney NSW 2000
Dear Sir/Madam
TRANSACTION – bfs – LYCOPODIUM
The Directors of Gippsland Limited ("Gippsland"
or "the Company") are very pleased to
announce that Lycopodium Pty Ltd has been appointed
to undertake the Bankable Feasibility Study (“BFS”)
for Gippsland’s 40 million tonne Egyptian
Abu Dabbab tantalite project.
Gippsland Chairman Mr Jack Telford stated; “We
are very pleased to have concluded the deal with
Lycopodium as the company is the best possible
choice for the job at hand for a number of reasons.
It is conveniently based in Western Australia,
the home of many advances in gravity separation
technologies; has extensive experience in Africa
in a range of major resource projects; and the
company’s expertise is clearly recognised
by major financial institutions worldwide.”
The Bankable Feasibility Study is expected to
cost $350,000. However, the cash cost to Gippsland
shall only be $230,000 since a fundamental provision
of the agreement with Lycopodium is that Lycopodium
shall receive 1,000,000 Gippsland ordinary shares
issued at 12 cents each in payment of the first
$120,000 expended on the BFS.
Lycopodium Director Mr Mick Caratti stated; “We
like the Abu Dabbab project and we also know the
Gippsland people very well. The currently known
facts about Abu Dabbab are very encouraging and
hence the decision to take part of our remuneration
in Gippsland shares at 12 cents per share was
an attractive one to make”.
ABU DABBAB RESOURCES
Measured: 12 million tonnes @ 274 g/t Ta2O5 (7.247
million pounds Ta2O5)
Indicated: 2.1 million tonnes @ 260 g/t Ta2O5
(1.18 million pounds Ta2O5)
Inferred: 26 million tonnes @ 240 g/t Ta2O5 (13.7
million pounds Ta2O5)
It is anticipated that the BFS will focus on
an initial ore feed rate of 1 million tonnes per
annum, producing approximately 420,000 pounds
of tantalum pentoxide (Ta2O5) per annum. The BFS
will also consider expanding throughput to 2 mtpa
at the earliest opportunity.
Initial studies indicate that Abu Dabbab will
generate substantial credits for niobium pentoxide
(Nb2O5), tin, and a high quality micronised feldspar
as co-products to the Ta2O5.
Abu Dabbab, located on the Western shore of the
Red Sea, is readily accessible overland via a
hard dirt road, conveniently located some 25km
from a major national coastal highway and 75km
south of the Red Sea port of Quseir. Abu Dabbab
is located 25km from the Marsa Alam international
airport constructed recently to cater for the
regions growing international tourist trade.
The Abu Dabbab tantalite project is the subject
of a 50:50 joint venture between Gippsland and
Egyptian Geological Survey & Mining Authority
(EGSMA), an Egyptian government body.
LYCOPODIUM expertise
From its base in Western Australia, Lycopodium
is a leading engineering, mining and metallurgical
consultancy specialising in the evaluation, design
and construction of Australian and international
mineral processing plants, material handling and
infrastructure projects.
Lycopodium has a long history of successes having
implemented major projects from conceptual planning
and feasibility study phase through to the completion
of design, construction and commissioning.
International project experience has been completed
for a range of clients and commodities in diverse
continents - Australia, Africa, Asia and Central
Europe.
ISSUE OF 1,000,000 GIPPSLAND SHARES TO LYCOPODIUM
Work on the BFS by Lycopodium commenced today.
Gippsland has today issued and allotted 1,000,000
fully paid ordinary shares at the price of 12
cents per share to Lycopodium. No cash funds were
raised as a consequence of the issue. The issue
was an excluded issue pursuant to section 708(8)
of the Corporations Law.
The issue of these 1,000,000 fully paid ordinary
shares represents 1.28% of Gippsland's expanded
issued share capital since there is now 78,231,966
fully paid ordinary shares outstanding as a result
of the completion of this issue.
The new ordinary shares rank equally with other
ordinary shares on issue and will participate
fully in any dividends announced after today's
date. No assurance however is given by the Directors
of Gippsland as to future dividends since they
are dependent on earnings, the financial condition
of Gippsland and other factors.
Yours sincerely
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 which 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 and who has over 25 years experience
in the mining industry.
ASX 02.03.26
|
