Here is some news, not the Big news, but it is progress:
News Release
MARCH 6, 1998, VANCOUVER, CANADA
INTERNATIONAL PANORAMA RESOURCE CORP. (the "Company") announces the completion of a review to define the optimum plant size of the Kakanda copper/cobalt project in Katanga Province, in the Democratic Republic of Congo. The Company's technical management conducted the review which confirmed the economic viability of a plant producing 1,000 tonnes per year of cobalt and 9,500 tonnes per year of copper from the tailings only. This review was extrapolated from the findings of the Feasibility Study completed in October 1997.
The plant, with capital costs estimated at US $90.3 million, would process the tailings over a 22 year period at an operating cost of approximately US $22.50 per tonne. Cash operating costs are approximately US $0.06 per pound copper after cobalt credits based on a selling price of US $8.00 per pound. The review further confirms economic viability at a copper price of $0.85 per pound and a cobalt price of less than US $8.00 per pound. Payback of capital is expected in the third year of operation.
With the introduction of a down-sized, low-cost alternative to the previously announced plant sized to produce 3,500 tonnes per year cobalt, the Company is strongly positioned to secure financing from several diverse sources. Initial indications from the financial community are very supportive of the reduced capital costs of a smaller plant. Standard Bank of South Africa is continuing in its role as the lead lender to the project. A significant portion of the debt financing is expected to be insured by the South African Credit Guarantee Insurance Corporation (CGIC), and an application was submitted to CGIC in November, 1997. The Company has received an encouraging response from CGIC and is attending to the conditions stipulated by CGIC and Standard Bank.
The hard-rock reserves, currently measured at 11.3 million tonnes of ore, grading 2.76% copper and 0.19% cobalt, will be further analyzed for their potential inclusion in any future plant capacity expansion.
The down-sizing review was precipitated by the depressed state of the international resource markets and, most notably, the deterioration in the copper market during the second half of 1997. Consequently, the Company conducted an analysis of its financing options to determine the optimum size of plant for the prevailing economic conditions.
Concurrently, due diligence investigations by major mining companies are ongoing to develop the larger plant, with capital costs estimated at US $270 million. Should a joint venture arrangement with an established mining company be attained prior to the Company funding the down-sized plant, the larger plant will be accorded first priority.
Furthermore, we are in advanced stages of negotiation to form a joint venture for further property acquisitions in the Central African Copperbelt to expand the Company's long term resource potential.
INTERNATIONAL PANORAMA RESOURCE CORP.
Kenneth MacLeod
President & CEO
International Panorama is traded on the Vancouver Stock Exchange (ILP) and the U.S. OTC Bulletin Board (IPNRF). For further details please contact IPRC at 1-800-931-1818 or 604-687-7294, or visit IPRC's web site at www.intlpanorama.com. |
