Investika Focuses On Puquios Project
Friday, April 18, 2008; Posted: 02:27 AM
tradingmarkets.com
LONDON, Apr 18, 2008 (Dow Jones Commodities News via Comtex) -- -- Edited Press Release
Investika Friday reported on its quarterly activities to Mar. 31, 2008. The company said the completion of the bankable feasibility study and finalisation of project financing of the Puquios project is the major focus for Investika during 2008.
Investika's total equity in the project increased to 94% during the quarter.
The bankable feasibility study continued. Progress was to plan, with the key activities undertaken being:
* The in-fill drilling programme and associated assay work was completed. Work is underway on the revised geological model/resource evaluation and is expected to be finished during the June quarter. The closer spaced drill hole data now available will result in a geological model with a much improved confidence level. * The Phase 1 metallurgical test programme was completed with preliminary results indicating metal recoveries in excess of pre-feasibility study assumptions.The final report for this test work is being prepared. * The preparation and planning of engineering flow-sheets, general arrangement drawings, electrical distribution requirements, leach-pad design and the mechanical equipment list continued. * Pump testing of the water well that is proposed as the major source of project water supply indicated a continuous flow of 40 litres/second is available.
The company said detailed mine planning and cost estimation will commence with the completion of the geological model. However, initial vendors' quotations for some major equipment has been received and a preliminary cost estimate prepared.
This capital estimate is currently US$130 million including pre-strip, working capital and taxes. Preliminary economic analysis indicates very robust project economics over a range of copper prices.
SRK Consulting was appointed as the Independent Engineers to undertake the independent technical review of the project. This comprehensive and independent due diligence of the Puquios project will enable potential project lenders to fast-track their internal assessment processes.
Exploration drilling commenced at the end of the quarter at Las Nipas, a nearby significant copper-molybdenum-gold geochemical anomaly. Las Nipas is one of a number of exploration targets located in close proximity to Puquios that could potentially provide resources to supplement the supply of ore to the Puquios plant.
The target completion date for the bankable feasibility study remains late in the September 2008 quarter.
At the Berong Nickel Project, Philippines (18.7% direct interest, 6.3% indirect interest), a total of 165,000 tonnes of ore was mined in the March quarter.
Production was impacted by the excessive wet conditions brought about by the La Nina weather phenomenon which is impacting the whole of the Philippines. Rainfall at the mine site was over 81cm compared to 24cm for the same quarter in 2007.
A total of 58,500 wet metric tonnes of laterite nickel ore at an average grade of 1.51% Ni (approximately 593 tonnes contained nickel on a dry basis) and 28.35% Fe was shipped to Australia and China.
203,000 tonnes of ore is stockpiled at the coast awaiting shipping. Shipments were impacted by the wet weather and high sea swells, conditions similar to those experienced in the fourth quarter of 2007.
The period from October through February, inclusive, is challenging from the perspective of ship loading with the excessive sea swells preventing the offshore trans-shipment of ore. This is likely to be an annual event until such time a trestle conveyor is built.
Studies on a trestle conveyor or alternative loading systems continue. The window for good loading conditions is March through September, inclusive.
The market for laterite ore appears to be segmenting into two, with the high nickel-high iron feed (>1.45% Ni & > 25% Fe) being sought by the Chinese blast furnace producers; and the high nickel-low iron feed (>1.5% Ni & <20% Fe) being sought by the electric arc furnace producers.
Berong ore with its high Fe content meets the requirements for the Chinese blast furnace market which is not too dissimilar to the specifications for the BHP/QNI contract.
Construction activities at site are nearing completion with most facilities (accommodation, heavy equipment workshops, etc) expected to be in place before the end of April.
The causeway is expected to be extended by 75 meters during the second quarter to allow larger barges to be berthed and reduce the impact of wave action during loading.
Permit approvals continue to delay the construction of the Dangla Road, a dedicated haul road without community development along its route. Whilst part approval was received for a 7 million wide road, this was deemed to be too narrow to allow heavy vehicle passing, and an approval for a 12 million road is being sought. Without the Dangla Road in place, production from Berong will be limited to around 750,000 wet metric tonnes for 2008.
Drilling and test pitting of the Long Point area is expected to commence late in the second quarter after the MPSA for exploration has been approved. This will be followed by the drilling and test pitting of the Moorsom area. No production from Long Point / Moorsom is expected until late 2009 after completion of the evaluation of the ore bodies, environmental approvals and feasibility studies.
The assessment of the processing options to add value to the large laterite resources at Berong continued. Metallurgical test work on representative samples has been completed and preliminary flow sheets designed. Preliminary capital and operating costs have also been prepared. Initial test results show excellent leach extraction rates, depending on processing options.
Work planned for the second quarter includes commencement of conceptual studies / pre-feasibility studies on the most suitable processing option for the Berong ore types.
At the Belitung Lead/Zinc Project, Indonesia (100% interest), field activities during the quarter consisted of surface mapping and validation of various geophysical and soil geochemical anomalous zones that were reported during previous exploration campaigns. This mapping programme was finished in late March.
The re-assessment of the Belitung geological model and resource potential was completed late in the quarter and after consideration Investika elected to withdraw from further participation in the Belitung project. The project's owners were informed of this decision subsequent to quarter end.
No exploration activities were conducted at UMC Energy during the quarter.
(END) Dow Jones Newswires
04-18-08 0227ET |
