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Gold/Mining/Energy : Haddington HDN-ASX -- Ignore unavailable to you. Want to Upgrade?

To: Buckey who wrote (171)	3/18/2002 2:59:13 PM
From: Buckey	Respond to of 174

Financial Results/Development & Exploration Update 3/18/02 HADDINGTON INTERNATIONAL RESOURCES LIMIT 2002-03-18 ASX-SIGNAL-G HOMEX - Perth +++++++++++++++++++++++++ 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