Financial Results/Development & Exploration Update
3/18/02
HADDINGTON INTERNATIONAL RESOURCES LIMIT 2002-03-18 ASX-SIGNAL-G
HOMEX - Perth
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FINANCIAL RESULTS
Haddington announced on 15 March 2002 a maiden net profit of $404,794
for the six months to 31 December 2001, on sales revenue of almost
$3.3 million from the sale of tantalite concentrates produced at its
Bald Hill tantalite project. The Project has demonstrated strong
profitability in the second quarter, which was offset by a first
quarter loss of some $248,000 stemming from the effects of start-up
and commissioning at Bald Hill.
The Bald Hill Project, located near Widgiemooltha, south-east of
Kalgoorlie, produced 51,000 pounds of tantalite for the six-month
period from the treatment of 79,000 tonnes of ore. The project
currently has a nameplate annual production capacity of 145,000
pounds of tantalite concentrate, which is sold under a Licence
Agreement toSons of Gwalia Limited.
The half-year result equated to earnings per share of 1.1 cents.
CATTLIN CREEK PROJECT
Haddington has completed a feasibility assessment of its Cattlin
Creek Project, located near Ravensthorpe, 540 kilometres south of
Perth. As part of this process, the Cattlin Creek orebody was
re-modelled and development options for the project reassessed. The
feasibility assessment has resulted in a reduction in the reserve
estimate for the project to 168,000 tonnes at 540ppm Ta2O5, down from
363,000 tonnes at 520ppm Ta2O5 as set out in the Company's
prospectus. This would reduce the project's mine life to just under a
year in its current configuration.
As a result of this resource downgrade, the Company has decided to
put development of the Cattlin Creek project on hold at this stage.
The project returns would be marginal in its current form, and the
Company feels it will be better served by applying capital to
enhancement of the Bald Hill Project. Haddington has made this
decision after consultation with Sons of Gwalia, and after
consideration of alternative development scenarios.
There is potential to find additional reserves at Cattlin Creek and
these opportunities will be explored in future.
BALD HILL FOCUS
The Company will now concentrate its focus and resources on the Bald
Hill project which is now producing profitably. The Company has
commenced a program of production enhancements including improvements
to the processing plant and de-bottlenecking of key items. This
program is expected to lead to improved productivity and future
increased capacity.
The Company recently announced a further 30% resource increase in the
resource base of the Bald Hill Project, adding about another two
years to the projected mine life - at current processing rates.
Haddington has increased the original resource at Bald Hill by 84%
since listing in January 2001.
The recent increase added a further 344,000 tonnes, to the total
identified resources at Bald Hill, to give a total identified
resource of 1,484,000 tonnes @ 466ppm Ta2O5, containing approximately
1.5 million pounds of tantalite. The previous resource figure was
1.14 million tonnes at 479ppm Ta2O5.
The mine life currently stands at approximately seven and a half
years at current production rates.
EXPLORATION
Haddington today announces the commencement of new exploration
programs at Bald Hill - on areas outside of its current Licence
Agreement with Sons of Gwalia, on Haddington's own tenements and on
those acquired as part of Australian Tantalum Limited's exploration
portfolio. A budget of $350,000 has been set for the next 12 months
to fund these programs.
The Company is confident that tantalum targets can be identified and
evaluated by this exploration program, with the objective of proving
up more resources as feedstock for the Bald Hill plant.
Haddington acquired Australian Tantalum last year, laying the
foundations for a future expansion of its production base. Australian
Tantalum has 11 tantalum project areas covering centres of historical
tantalite production in the Murchison, South West and Pilbara regions
of Western Australia, including the promising Paynes Find Project in
the Southern Murchison. All of the projects contain pegmatite-hosted
tantalum mineralisation.
C McCavana |
