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STREAMPLAY STUDIO LIMITED Interim / Quarterly Report 2005
65841_rns_2005-10-24_65ce966f-16bd-431a-a68f-43b4a998f344.pdf
Interim / Quarterly Report
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Suite 34, 18 Stirling Highway, Nedlands WA 6009 PO Box 352, Nedlands WA 6909, Australia A.C.N. 004 766 376 Tel: (08) 9389 8611 Fax: (08) 9389 8612 [email protected] www.gippslandltd.com
QUARTERLY ACTIVITY REPORT
Period: July - September 2005 25 October 2005
HIGHLIGHTS
- ❖ Approval of Abu Dabbab Environmental Impact Assessment
- ❖ Abu Dabbab locked-cycle confirmatory testwork increase in tantalum production.
- ❖ Further highly encouraging Wadi Allagi gold exploration results
- ❖ Share placement to UK investors raising £600,000
- Appointment of highly experienced Mining Engineer Director $\mathcal{L}_{\mathcal{F}}$
- ❖ Annual Report
ABU DABBAB ENVIRONMENTAL IMPACT ASSESSMENT
During October 2005 Gippsland Limited ("Gippsland" or "the Company") announced that the Environmental Impact Assessment ("EIA") for the Company's 40Mt Egyptian Abu Dabbab tantalum-tin project had been approved by the Egyptian Government's Environmental Affairs Agency. The EIA was undertaken by the Egyptian environment group Environics and Dorsch Consult (Germany); the international environmental engineering group Knight Piesold also made a substantial contribution to the EIA.
The structure and content of the EIA, undertaken over a period of some 16 months, was completed in accordance with guidelines established by the World Bank Group which complemented those provided by Egyptian legislation.
The EIA process was conducted in parallel and interactively with project design work. As a result, potential negative environmental effects were mitigated, through appropriate design and environmental management, to acceptable levels by international standards. The EIA included commitments to enhance the numerous social benefits associated with the project.
The completion of the world-standard Abu Dabbab EIA which, being the first such environmental study concluded in Egypt, is seen as an historical milestone in the development of the country's mineral resources.
ABU DABBAB CONFIRMATORY TESTWORK - INCREASE IN TANTALUM PRODUCTION
Gippsland is presently in negotiation with a major international bank in regard to project finance for the Company's 40Mt Abu Dabbab tantalum-tin project. As part of the Bank's due diligence, Gippsland has been requested to undertake a small locked-cycle metallurgical testwork programme to re-confirm the tantalum and tin recoveries achieved in detailed testwork associated with the feasibility study completed during November 2004.
Accordingly, a 1,800kg sample collected from along the 710m length of the 3 adits through the deposit is presently being processed in the pilot plant located in a Perth metallurgical laboratory.
The feasibility study determined that Abu Dabbab would produce some 650,000 pounds of tantalum pentoxide $(Ta2O5)$ and 1,530 tonnes of tin metal per year. These quantities are based on bulk mining and a grade of 261g/t tantalum pentoxide.
By applying a small degree of grade control, the head-grade will be increased by 10 - 20% which in turn is expected to increase production to at least 720,000 pounds of tantalum pentoxide and 1,680 tonnes of tin metal per year.
Increased tantalum and tin production will have a marked positive impact on the project's revenue stream and IRR.
The completion of testwork presently underway in a Perth metallurgical laboratory to evaluate the recoveries associated with the elevated mill feed grades has been delayed due to work backlogs at the laboratory however the testwork is expected to be completed and reported to the market by mid November 2005.
HIGHLY ENCOURAGING WADI ALLAQI GOLD EXPLORATION RESULTS
During June 2005 the Company announced most encouraging Wadi Allagi gold exploration results work undertaken in the Company's Wadi Allagi tenements located to the south-east of Aswan in Egypt. This initial programme was extended by further exploration undertaken during August 2005 the results of which further emphasise the high prospectivity of the areas being explored.
At Seiga further sampling delineated a mineralised up to 50m in width.
Seiga
- 50m wide mineralised zone now containing
- 20m @ 7.40g/t Au and 20m @ 2.83g/t Au
- 15.5m @ 9.25g/t Au $\bullet$
- 4.5m @ 6.69g/t Au
- 11m @ 10.29g/t Au
This particular zone of mineralisation extends over more than 250m in length whilst being open to the north and the south and open in part to the east and the west.
Mechanical trenching undertaken at Haimur delineated a mineralised zone 5m wide containing 44.45g/t Au.
Sixteen trenches totalling 1.540.5m were completed using a mechanical excavator at Haimur and Um Garavat.
The exploration results complement the highly encouraging geochemical sampling results announced in May and June 2005.
Seiga (gold)
Rock chip sampling in May 2005 at Seiga identified a 34.5m wide zone of gold mineralisation across old workings which included 20.3m at 7.40g/t and 8m at 7.7g/t (CP1). A 20m shallow trench (CP2) located immediately to the west of the rock chip profile returned 20m at 2.83g/t further extending the width of the previously identified mineralised zone to 50 m.
Rock chip sampling and shallow trenching along a profile 70m to the north (CP6) returned 15.5m at 9.25g/t. The profile included 4.5m at 6.69g/t on the western side of some old 4.5m wide workings plus 11m at 10.29g/t on the eastern side where the sampling profile ended.
Three profiles consisting of rock chip sampling and shallow trenching were completed to the south of CP1 at a spacing of between 40 and 77m. The results although lower than those in profiles CP1, CP2 and CP6 are most encouraging and include 16m at 0.97g/t in CP3, 8m at 1.58g/t in CP4 and 8m at 1.55g/t in CP5. A profile located 500m to the north returned a best value of 5m at 0.12g/t.
The trenching programme determined that the gold mineralisation extends over a length of 250m and is open to the north and south and in part to the east and the west.
Um Garayat (gold)
A trench 55m long tested the northern extension of the historical workings under the Wadi sediments with a best result of 5m at 0.26g/t Au within sheared bedrock. At Block A located 1.5km to the north a single trench returned 7m at 0.76g/t Au at the eastern end of the trench.
Haimur (gold)
A mechanical excavator was used to dig thirteen trenches at Haimur to test regolith gold anomalies identified during the previous exploration sampling campaign in May 2005 and the along strike extensions of historical workings at Haimur South. The trenching results confirmed the presence of anomalous gold values within the bedrock with a best intersection of 5m at 44.45g/t in trench HT9. The results are considered to be very encouraging as they confirm the presence of anomalous gold in the bedrock closely associated with zones of shearing.
FURTHER EXPLORATION
The Company considers the above Wadi Allagi gold exploration results to be highly encouraging and compound the outstanding results announced during June 2005.
The Company is currently arranging to expedite the delivery of a multi-purpose drill rig to Egypt to commence the drilling programme planned during the last quarter of 2005.
The Directors anticipate that further exploration at Wadi Allaqi will greatly expand the presently delineated gold mineralised zones, a number of which have obvious potential for extensive zones of gold mineralisation.
SHARE PLACEMENT - FUNDRAISING £600,000
During October 2005 the Company completed the placement of 15 million Ordinary Shares to UK investors at a price of 4 pence (approximately 9.33 Australian cents) per share raising the sum of UK£600,000 (approximately A$1,400,000) before costs.
The funds raised will in the main be employed to develop the Company's Egyptian projects in particular the Wadi Allagi gold projects, new project initiatives and working capital.
APPOINTMENT OF MINING ENGINEER DIRECTOR
During the quarter the Directors announced the appointment to the board of highly regarded mining engineer John Dunlop.
John SF Dunlop (aged 55) holds Bachelors and Masters Degrees in Mining Engineering from the University of Melbourne. He is a certified Mine Manager having approximately 35 years of international surface and underground mining experience in a variety of base metal, industrial and precious metal production and management situations. He is a Director of the Australasian Institute of Mining and Metallurgy (AusIMM) and Vice Chairman of its affiliate, the Mineral Industry Consultants Association (MICA).
Mr Dunlop is a highly experienced mining professional having been involved in the design, construction and ongoing operation of a number of major resource projects throughout the world. He has a detailed knowledge of the Company's 40Mt Abu Dabbab tantalum project in Egypt having been involved in the preparation of the project's Bankable Feasibility Study completed during November 2004.
His appointment is part of the Company's plans to expand its team of highly skilled mining professionals to implement the development and subsequent operation of the Abu Dabbab project which is scheduled to become the world's second-largest tantalum producer.
ANNUAL REPORT
The Gippsland 2005 Annual Report, which has been mailed to shareholders, is available in a digital format in the Investor Relations section of the Gippsland website www.gippslanditd.com.
For further information please contact:
| Jack Telford | Leesa Peters / Laurence Read | Bill Sharp / Les Polden |
|---|---|---|
| Gippsland Limited | Conduit PR | HB-corporate |
| Tel: +61 (0)8 9389 8611 | Tel: +44 (0)20 7618 8760 | Tel: +44 (0)20 7510 8560/8576 |
| [email protected] | [email protected] | [email protected] |
| www.gippslanditd.com | [email protected] | [email protected] |
Note: In accordance with Listing Rule 5.6 of the Australian Stock Exchange Limited, the geological information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on data compiled by Dr John Chisholm, a Fellow of The Australasian Institute of Mining and Metallurgy. Dr Chisholm who is an Executive Director of Gippsland Limited and a principal of Continental Resource Management Pty Ltd, with over 25 years experience in the mineral industry including the evaluation of exploration data, mineral resources and ore reserves, has consented to the issue of the information in this report in the form and context in which it appears.