Champion's production assumptions
Champion Resources Inc CHL
Shares issued 16,746,940 Dec 31 close $0.53
Mon 4 Jan 99 News Release
Mr. Michael McInnis reports
Further to the company's news release in Stockwatch Dec. 11, 1998, the
Farim phosphate project, in Guinea-Bissau, West Africa, will enter
production in mid-2001 at a rate of 750,000 tonnes per year of phosphate
rock concentrate. Annual operating margins are forecast to be well within
the prescribed requirements for financial closure. Based on current
reserves of 105 million tonnes and a production rate of 750,000 tonnes per
year, mine life would be well in excess of 50 years.
Recent marketing studies carried out concluded that the global phosphate
market could readily absorb production of up to 2,500,000 tonnes of
acid-grade, 32 per cent P205 rock from Farim. As a result, consideration
will be given to production expansion once the Farim plant is in
production. Fertecon also forecast phosphate prices to increase steadily
over the next 10 years from the current FOB price of $47 (U.S.)/tonne.
The Farim phosphate deposit, which occurs in a flat lying, four metre thick
bed, will be mined by open pit methods. The mined phosphate, which grades
29.8 per cent P205, will be upgraded to the required 32 per cent P205 in a
standard beneficiation plant and then direct-shipped to market.
As the first major international investment in Guinea-Bissau the project
will bring significant benefits to the country. The development of a
sustainable source of foreign exchange through exportable product and an
industrial resource base will generate international exposure, an influx of
international investment and federal income. Local benefits at Farim would
include the establishment of infrastructure, social improvements,
employment, and the development of a sustainable service sector.
The Farim project is owned by Champion Industrial Minerals, a wholly-owned
subsidiary of Champion Resources. A technical due diligence program,
consisting of drilling, beneficiation work, hydrologic evaluation and
product transport studies is being undertaken to satisfy the requirements
of the financing institution. Work is scheduled to start in February under
the supervision of an independent engineering group.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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