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SCIDEV LTD Capital/Financing Update 2006
65761_rns_2006-06-19_1337faf5-0320-4c5f-aef8-ea89e338a17f.pdf
Capital/Financing Update
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ABN 25 001 150 849
Superior and Sustainable Metals Production
Gordon Chiu Building [01 Department of Chemical Engineering Maze Crescent University of Sydney NSW 2006 Australia
Phone: 02-9351-6741 Fax: 02-9351-7180 Email: [email protected] Website: www.intec.com.au ASX code: INL
20 June 2006
Companies Announcements Office Australian Stock Exchange Limited
Sale of Hellyer Low-Grade Bulk Concentrate
When Intec Ltd (ASX Code: INL) acquired the assets comprising the Hellyer Metals Project in January 2004, these included approximately 2,000 tonnes of low-grade bulk concentrate stored in the Hellyer concentrates storage shed. This parcel represented the last concentrate produced from the Hellyer Mine in 2000 and was at the time of its production unsaleable. The specification of the concentrate is shown in the table below.
| mm | Carade |
|---|---|
| Zinc | 21.5% |
| Lead | 17.3% |
| Silver | $375$ g/t |
| Gold | $2.3$ g/t |
| Arsenic | 1.07% |
Table 1: Assay of Low-Grade Hellyer Bulk Concentrate
Until recently, economic conditions have precluded the profitable sale of this concentrate parcel. However, with current strong prices for base metals, in particular zinc, and attractive container shipping rates the parcel has been sold to a smelter in northern China for a gross price of A\$125 per tonne at the Hellyer Mill gate (i.e. approximately A\$250,000, which payment has now been received).
Figure 1: Loading of Concentrate into trucks at Hellyer
Figure 2: Containerised Concentrate prior to Ship Loading at Burnie Port
The profitable sale of this parcel of low-grade Hellyer bulk concentrate augurs well for concluding suitable off-take agreements for the Hellyer Zinc Concentrate Project (HZCP). The HZCP is forecast initially to produce 70,000tpa of bulk concentrate grading 43% zinc, 9.5% lead and 170g/t silver. Production of this concentrate is expected to commence before the end of the September 2006 quarter with the first concentrate shipment expected late in the December 2006 quarter.
Yours sincerely
Philip R. Wood
Philip R Wood Managing Director and Chief Executive Officer Intec Ltd