Wetar Copper Project Update
22 Diciembre 2008 - 2:04AM
UK Regulatory
Wetar Copper Project Update
FINDERS RESOURCES LIMITED
Wetar Copper Project Update
* Commencement of operations at Wetar Copper Project
Demonstration Plant
* Further upgraded JORC resource estimates
* Excellent new leach results
* New Indonesian Mining Law
Commencement of operations at Wetar Copper Project Demonstration
Plant
Finders Resources is very pleased to report that following a
three-week commissioning phase for the crushing and stacking circuit,
mining and continuous stacking of ore for the demonstration plant has
now commenced. It is envisaged that the irrigation of the stacked
ore will commence on, or around, December 24, with first copper
cathode production scheduled within two to three weeks from
irrigation.
Resource estimates further upgraded and reported to JORC Code and
Guidelines
The resource estimates (Table 1) for both the Kali Kuning and Lerokis
massive sulphide deposits have been upgraded to +98% JORC Measured
and Indicated categories. This is based on the results of 41 new
reverse circulation and diamond drill holes at Kali Kuning, and 21
new reverse circulation and diamond holes at Lerokis. The new
resource estimate has been independently estimated by Hellman &
Schofield Pty Ltd and reported according to the JORC Code and
Guidelines.
The combined resource estimate for Kali Kuning and Lerokis, at a 0.5%
copper cutoff, of 9 Mt at 2.4% copper, or 218,000 tonnes of contained
copper, represents a 10% reduction in total copper compared to
previously announced estimates, due largely to the tighter control of
the massive sulphide boundaries from closer spaced drilling at the
Lerokis deposit. It is expected that almost all of the Measured and
Indicated Resources will be converted into Ore Reserves upon the
completion of further mine planning and feasibility work.
Based on the new drilling the Kali Kuning massive sulphide resource
has been re-classified into three metallurgical sub-types, Leached,
Transition zone material and Primary massive sulphide, (Table 2). The
Leached and Transition types reflect incipient in-situ leaching of
the massive sulphide unit by natural groundwater. The Transition zone
material, although of lower copper grade than the main Primary
massive sulphide, (1.5% Cu vs 2.9%Cu) contains a higher proportion of
readily leachable copper minerals which translates to significantly
faster leach rates for this material, as described below. The
Transition zone occurs at the highest levels of the deposit and will
comprise a major proportion of early mined mineralization for the
expanded Wetar copper project.
Excellent new leach results
Given the higher grade of the transitional mineralisation from recent
drilling, metallurgical test work on this material has been
instigated at site with two new column tests. Though still at an
early stage, the results are very encouraging with 57% copper
recovery achieved within 13 days, subject to final mass balance
calculations. These results are significant for the expansion
project, since the SX-EW plant is likely to achieve nameplate
capacity much faster than previously expected due to the fast
leaching nature of the Transition mineralisation.
New Indonesian Mining Law
The company advises that the new Indonesian mining law, which was
passed last Tuesday, is unlikely to have an adverse effect on the
Wetar project. As a producer of copper metal on site, the Wetar
project complies both in letter and in spirit with the Indonesian
government's push for "in country" processing within Indonesia. Our
work to date under the KP title system in Indonesia involves
essentially the same permitting system through the local government
as required under the new law, and we will continue to benefit from
existing relationships established with the local Government
agencies. Government copper metal royalties are expected to remain
at 4% and should be differentiated from the 10% royalty applicable to
new projects within "State Reserve Areas".
Chris Farmer, Managing Director commented:
"We now believe that the logistical and supply delays relating to
establishing the Wetar demonstration plant are largely behind us. The
commencement of stacking of the heaps represents a major milestone
towards copper production at Wetar.
We see the new Indonesian Mining Law as a positive for the Wetar
project, and our work to date has been carried out on the
understanding that the new Mining Law was likely to be implemented.
Despite the current low copper price, the Directors believe that the
Wetar copper project's grade and cost structure will continue to
justify its early development. This will make us one of the few
junior miners with prospects in exploration, development and
production."
For further information please contact
Finders Resources Ltd:
Russell Fountain, Executive Chairman, +61 2 9211 8299
Chris Farmer, Managing Director, info@findersresources.com
Financial PR:
Doug Macdonald, +61 424 255 959, Capital Group (in Australia)
Paddy Blewer or Nick Elwes, +44 20 7457 2020, College Hill (in the
UK)
RFC Corporate Finance Ltd - Nomad and Corporate Adviser:
Rob Adamson, +61 2 9250 0000
Stuart Laing, + 61 8 9480 2500
FinnCap - Finders' Broker for the AIM market
Mathew Robinson, +44 (0) 20 7600 1658
Joe Lunn (Analyst), +44 (0) 20 7600 1658
Table 1. Wetar project Resource Estimates
Note: Rounding errors may cause inaccuracies in following tables
+--------------------------------------------------------------------+
|0.5% Cu cut-off | | | | Attributable | 92.8%* |
|grade | | | | | |
|---------------------+--------+-----+-------+--------------+--------|
| |Category | Tonnes | Cu% | Cont. | Tonnes (M) |Cont. Cu|
| | | (M) | |Cu (KT)| | (KT) |
|---------+-----------+--------+-----+-------+--------------+--------|
|Kali |Measured | 5.2 | 2.6 | 133 | 4.8 | 123 |
|Kuning | | | | | | |
|---------+-----------+--------+-----+-------+--------------+--------|
| |Indicated | 0.9 | 2.5 | 22 | 0.8 | 20 |
| |-----------+--------+-----+-------+--------------+--------|
| |Inferred | 0.1 | 1.8 | 2 | 0.1 | 2 |
| |-----------+--------+-----+-------+--------------+--------|
| |Total | 6.1 | 2.5 | 156 | 5.7 | 145 |
|---------+-----------+--------+-----+-------+--------------+--------|
|Lerokis |Measured | 2.1 | 2.4 | 51 | 1.9 | 47 |
|---------+-----------+--------+-----+-------+--------------+--------|
| |Indicated | 0.5 | 2.1 | 10 | 0.5 | 9 |
| |-----------+--------+-----+-------+--------------+--------|
| |Inferred | 0.1 | 1.4 | 2 | 0.1 | 2 |
| |-----------+--------+-----+-------+--------------+--------|
| |Total | 2.7 | 2.3 | 62 | 2.5 | 58 |
|---------------------+--------+-----+-------+--------------+--------|
|Overall | 8.8 | 2.4 | 218 | 8.2 | 203 |
+--------------------------------------------------------------------+
*Attributable: ownership is based on estimates of project
expenditure to end-November 2008 and is subject to final audit.
Table 2. Breakdown of Kali Kuning by metallurgical zone
+-------------------------------------------------------------------+
| | Zone | Tonnes (M) | Cu% | Cont. Cu |
| | | | | (KT) |
|------------------+------------------+------------+-----+----------|
| Massive Sulphide | Leached Zone | 0.1 | 0.7 | 1 |
|------------------+------------------+------------+-----+----------|
| 0.5% Cu | Transition Zone | 1.2 | 1.5 | 17 |
| cut-off grade |------------------+------------+-----+----------|
| | Primary Zone | 4.8 | 2.9 | 138 |
| |------------------+------------+-----+----------|
| | Total | 6.1 | 2.5 | 156 |
+-------------------------------------------------------------------+
An additional 700,000 t of mineralized clay altered tuff, grading
0.9% Cu, which forms the wallrock to the massive sulphide, has been
excluded from the resource estimates because of uncertain
metallurgical response.
Metallurgy
Diagram showing time-copper recovery curves for a number of column
tests completed under different conditions for the two main ore
types, the massive sulphide unit (blue) and the transitional unit
(red). Due to the high permeability of the host rocks in the deposits
which are predominantly pyrite, normal scale-up factors to adjust 2m
column test results to the anticipated commercial heap height of 8m
are less than other leach projects. The current model will be
compared to actual results from the demonstration plant.
Statements
The information in this report that relates mineral resource
estimation is based on work completed by Dr Phillip Hellman who is a
full time employee of Hellman and Schofield Pty Ltd and a member of
the Australasian Institute of Mining and Metallurgy. Mr Abbott has
sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as
defined in the 2004 Edition of the 'Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves' and as a
Qualified Person as defined in the AIM Rules. Dr Hellman consents to
the inclusion in the report of the matters based on his information
in the form and context in which it appears. Estimates for Kali
Kuning are based on a data set from which some diamond drill holes
have been excluded due to poor recovery of copper mineralisation as
evidenced by neighbouring RC holes.
Geological information in this announcement and comments relating to
exploration potential and the project in general is based on
information compiled by Dr Russell Fountain, who also accepts
responsibility for the data on which the resource is based. Dr
Fountain is a Director of Finders and a Fellow of the Australasian
Institute of Geoscientists. Dr Fountain has sufficient experience
that is relevant to the styles of mineralisation and types of
deposits under consideration and to the activity that he is
undertaking to qualify as Competent Person as defined in the JORC
Code. He consents to the inclusion in this announcement of the
matters based on his information in the form and context in which
they appear.
All assaying of drill core samples was undertaken by the ITS
laboratory in Jakarta. ITS is one of the world's largest product and
commodity testing, inspection and certification organizations. The
Jakarta laboratory is ISO 17025 accredited and employs a Laboratory
Information Management System (LIMS) for sample tracking, quality
control and reporting.
Statements in this document that are forward-looking and involve
numerous risks and uncertainties that could cause actual results to
differ materially from expected results are based on the Company's
current beliefs and assumptions regarding a large number of factors
affecting its business. Actual results may differ materially from
expected results. There can be no assurance that (i) the Company has
correctly measured or identified all of the factors affecting its
business or the extent of their likely impact, (ii) the publicly
available information with respect to these factors on which the
Company's analysis is based is complete or accurate, (iii) the
Company's analysis is correct or (iv) the Company's strategy, which
is based in part on this analysis, will be successful.
Background
Finders, listed on AIM and ASX, is the operator of the Wetar Copper
(~92% and earning), and Ojolali Gold-Silver Projects (72% with
option) in Indonesia, and holds an investment in Geopacific Resources
NL, an ASX-listed company with active exploration programs for gold
and copper in Fiji.
At the Ojolali Project, Finders controls what it considers to be a
major new epithermal gold district, and has been undertaking an
extensive exploration program comprising detailed drilling to
establish and initial mining resource, supported by extensive surface
geophysical and geochemical surveys. Finders' believes that the
Ojolali project has strong potential to generate short-term cash flow
through open pit CIL/CIP development of the gold resource at the
Jambi Oxide gold deposit.
For further information on results previously reported and a full
resource statement please visit our website www.findersresources.com.
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