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STREAMPLAY STUDIO LIMITED Capital/Financing Update 2003
65841_rns_2003-03-17_dffcf144-3901-47a9-9aff-e9c71bd6cad2.pdf
Capital/Financing Update
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Suite 34, 18 Stirling Highway, Nedlands WA 6009 PO Box 352, Nedlands WA 6909, Australia ABN 31 004 766 376 Tel: (08) 9389 8611 Fax: (08) 9389 8612 E-mail: [email protected] www.gippslanditd.com.au
18 March 2003
Company Announcements Office Australian Stock Exchange Limited 20 Bond Street Sydney NSW 2000
Dear Sir / Madam
PROJECT SCOPING STUDY - NPV A\$212 MILLION
On 22 Match 2002 Gippsland Limited ("Gippsland" or "the Company") announced that the engineering group Lycopodium Pty Ltd ("Lycopodium") would undertake the Bankable Feasibility Study ("BFS") for the Company's 40 million tonne tantalum - feldspar deposit situated in Eqypt ("Abu Dabbab Project").
As a consequence of the metallurgical testwork undertaken by Lycopodium, the magnitude of the Abu Dabbab Project has expanded considerably, especially with respect to the production of micronised ceramic grade feldspar which has been increased from an estimated 500,000 tpa to 800,000 tpa. The expanded BFS is progressing well whilst continuing to provide most encouraging results.
As a result of the expanded operation, the Company determined the BFS should include a pilot plant testwork programme as announced to the market on 31 January 2003. This work, which shall take place in Australia, will be based on a 40 tonnes bulk sample which is currently being sourced from the Abu Dabbab Project.
In view of the above development, Gippsland instructed Lycopodium to undertake an interim Scoping Study to enable the Company to consider the ramifications of the expanded operation.
| Scoping Study Results | |
|---|---|
| Initial Mine Life (Conservative) | 21.5 years (Project Life 30+ years) |
| Ore Treated per Annum | 1 million tonnes |
| Production per Annum | 340,000 lbs tantalum pentoxide $(Ta_2O_5)$ 985 tonnes tin (Sn) 800,000 tonnes ceramic grade feldspar |
| Capital Cost | US\$41.5 million |
| Revenue over 21 year period | US\$966 million |
| Average Annual Revenue | US\$44.79 million |
| Average Annual Operating Costs | US\$28.76 million |
| Operating Margin | US\$345.65 million over 21 years or A\$27 million per annum |
| Project NPV@6% | US\$127.11 million or A\$211.8 million |
| IRR | 36% |
| Payback Period | 3 years |
The Scoping Study takes into account royalty payments to the Egyptian Government and is based upon conservative mining and process recovery efficiencies, and the following product market prices.
| Tantalum $(Ta_2O_5)$ | US\$47.30/lb (A) |
|---|---|
| 19 YEAR OLD FALL TO FALL TO THE ROOM AND ALL TO A TO THE ROOM OF THE ROOM OF THE TOTAL TO A ROOM AND TO A TO THE TO THE TOTAL TO THE ROOM OF THE TOP OF THE TOP OF THE TOP OF THE TOP OF THE TOP OF THE TOP OF THE TOP OF THE Tin metal ("Sn") . Kandid manualid tahun terbihan bahasa termasa dalam manualid malalah melalui dan dalam tahun terbihan bahasa b |
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, US\$3,954/t |
| Feldspar | US\$31/t CIF Italian port рарарарары балары арылды алдын бул бол болбол балары жылымын кышынын кылымын арылдарды бараланын кышынын алдаб болболуп арал |
The Scoping Study does not take into account revenue resulting from the sale of niobium pentoxide (Nb2O5).
Gippsland has determined that the project will be strongly cash-flow positive at $Ta_2O_5$ prices of US\$30/lb and is viable based upon the sale of $Ta_2O_5$ alone.
The Abu Dabbab Project is owned 50% by the Egyptian Geological Survey Authority and 50% by Tantalum Eqypt Pty Ltd, a 100% owned Gippsland subsidiary and contains the following JORC Code compliant resources:
- Measured Resources: 12 Mt at 274 ppm Ta2O5, 126 ppm Nb2O5 & 0.13% Sn
- Indicated Resources: 2.1 Mt at 260 ppm Ta2O5, 90 ppm Nb2O5& 0.16% Sn $\bullet$
- 26 Mt at 240 ppm Ta2O5, 110 ppm Nb2O5& 0.06% Sn Inferred Resources:
- Total All Categories: 39.9 Mt at 252 ppm Ta2O5, 116 ppm Nb2O5& 0.089% Sn. $\bullet$
ruped
RJ (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.
(A) Metal Bulletin Research - London 22 October 2002. Metal Bulletin Research - London have predicted a Ta2O5 price average of US\$47.30/lb for the period 2002 - 2010.