Some other news from AustraliaRBA: AUSTRALIA: Centaur
Mining & Exploration Limited(CTR.AX)Cawse Nickel
Production Ahead of Schedule.
August 19, 1999
DETAILS OF ANNOUNCEMENT
1. PRODUCTION RAMP-UP
The Company advises that production ramp-up of the Cawse Nickel Operation is proceeding ahead of schedule following the recommencement of operations in mid July 1999 after descaling of the desalination unit. Autoclave throughput for August 1999 is 44% above budget due to 10% higher then forecast daily throughput rates and deferral of the August 1999 shutdown. Significantly the pressure acid leach circuit has operated consistently at full design throughput over the past 10 days. Metal extractions are consistently above 95% and overall recoveries have improved to approximately 85% as longer operating runs are achieved. Final product quality continues to improve as steady state operations are maintained with nickel cathodes now containing 99.8% nickel in line with the LME specifications. The improved process plant performance is reflected in the metal production for August 1999 which is on target for 300 tonnes of nickel and 70 tonnes of cobalt as cobalt sulphide. The project performance capital program is proceeding on schedule with increasingly positive impacts on process plant performance. Desalinated water supplies at design rates will be available from 25 August 1999 when the temporary back-up desalination unit will be operational. Improved isolation valves are now progressively being delivered to site. The better than forecast plant performance and improved equipment availability have permitted the rescheduling of the August 1999 shutdown to late September 1999. Forecast production for 1999/2000 remains at 6,300 tonnes of nickel and 1,450 tonnes of cobalt at an average cash operating cost of US$0.32 per pound nickel after cobalt credits at US$16.33 per pound cobalt.
2. CAWSE STAGE II EXPANSION
In light of the clear demonstration of the robustness and flexibility of the Cawse process route, the improvements in process plant throughput and availability and the substantial increases in accessible nickel laterite resources through the strategic alliance with Heron Resources NL and agreement with Gilt Edged Mining NL, the Company has commenced a pre-feasibility study on expansion of the
Cawse Nickel Operations.
The proposed development timetable involves completion of the pre-feasibility study by June 2000 and delivery of a bankable feasibility study by June 2001. Subject to a positive economic evaluation in the feasibility study and arranging suitable financing, project construction could commence by late 2001 with production commencing by early 2003. Production rates will be optimised as part of the pre-feasibility
study. Based on operating experience to date and identified economies of scale, the Company anticipates an autoclave throughput of approximately 4 million tonnes per annum producing over 45,000 tonnes per annum of nickel metal and at least 3,000 tonnes per annum of
cobalt as cobalt metal or salts. The expansion of the Cawse Nickel Operation will provide added value for shareholders by maximising the value of the Company's extensive nickel and cobalt resources, maintenance of its low costs of production and generation of substantial cash flows to finance future growth. The technical information in this report is based on and accurately reflects information compiled by Mr Ken Hellsten, General Manager Operations who is a corporate member of the Australasian Institute of Mining and Metallurgy. J I Gutnick
CHAIRMAN & MANAGING DIRECTOR |
