Haddington to mine tantalum with Australian Sons of Gwalia
Haddington International Resources Ltd HDN
Shares issued 1,462,111 Apr 20 close $0.20
Fri 28 Apr 2000 News Release
Mr. Colin McCavana reports
Haddington International Resources has reached agreement in principle with
Australian mining company, Sons of Gwalia Limited for the development of
the Bald Hill Tantalum deposit near Widgiemooltha, and the Cattlin Creek
Tantalum deposit at Ravensthorpe, in Western Australia. Sons of Gwalia
Limited hold mining tenements over the deposits.
Pursuant to the agreement Haddington will be solely responsible for the
development of the mines, including compliance with lease conditions,
environmental conditions, government royalties, design, construction and
operation of the mine and processing plant. Haddington will not be
acquiring the mining tenements from Sons of Gwalia but will operate the
mines under a contract basis. Sons of Gwalia will purchase all tantalum and
tin concentrates produced from the deposits.
Following the agreement in principal with Sons of Gwalia, Haddington will
move to finalize a formal agreement and undertake a detailed review of
project parameters, including independent reviews of previous resource
statements and metallurgical testwork as components of a final feasibility
study before committing to development. It is anticipated that the
feasibility study will be conducted over the next four months.
Haddington has reviewed various technical data including previous
geological and feasibility studies, conducted from 1985 to 1996, in its
preliminary assessment of the viability of the project. Previous resource
statements and metallurgical reports prepared on behalf of Sons of Gwalia
suggest reserves at Bald Hill of approximately 650,000 pounds of tantalum
with an estimated recovery of 60 per cent. At a proposed production rate of
175,000 pounds per year, the Bald Hill project would have an approximate
mine life of just under four years.
Tantalum is a strategic metal with very high corrosive resistance, high
melting point and unique electronic properties. Major uses of tantalum
include the manufacture of capacitors in electronic applications such as
mobile telephones and computers, in super alloys with nickel and cobalt for
the aerospace industry, in specialty metal products for the chemical
industry and in metal carbide for metal working tools. Recent growth in the
electronics industry has driven strong demand for tantalum.
Sons of Gwalia currently produces approximately 25 per cent of the world's
annual tantalum requirements.
This preliminary agreement for development of the Bald Hill and Cattlin
creek deposits provides Haddington with an opportunity to use the company's
development and operating skills to establish secure cash flow that will
underpin its exploration activities for the foreseeable future.
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