Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Champion Resources - CHL.vse -- Ignore unavailable to you. Want to Upgrade?

To: T.Bill who wrote (27)	1/4/1999 1:20:00 PM
From: rdww	Read Replies (1) \| Respond to of 176

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

To: T.Bill who wrote (27)	1/14/1999 2:56:00 PM
From: rdww	Read Replies (1) \| Respond to of 176

A few more details about the financing. The stock is having a nice week as the news about where this one is headed starts to sink in. Hopefully DD will start in early Feb after CHL wraps up talks w/ the Guinee gov't later this month. Champion elaborates on $84,000,000 (U.S.) financing Champion Resources Inc CHL Shares issued 16,746,940 Jan 13 close $0.78 Thu 14 Jan 99 News Release Mr. Michael McInnis reports Further to the company's news release in Stockwatch Jan. 5, 1999, the company would like to elaborate on the basis for the production assumptions under which the proposed $84,000,000 (U.S.) financing will be arranged for the Farim phosphate project in Guinea-Bissau, West Africa. The phosphate resource estimates are based on work carried out by the French Bureau of Research and Mining from 1981 to 1983. The BRGM drilled 5,200 metres in 102 diamond drill holes on a 500 metre grid. This work delineated a geological resource of 350 million tonnes of phosphate rock. The BRGM work led to a prefeasibility study by the French agency Sofremines in 1986 based on a potentially mineable reserve of 105 million tonnes grading 29.8 per cent, P2O5. The study was positive and recommended further work, however, due to poor market conditions at the time, no further work was undertaken. In late 1997, the company commissioned Fertecon Research Centre of London, England and Jacobs Engineering of Lakeland, Florida to review the prefeasibility study and update the evaluation. Fertecon and Jacobs concluded that the BRGM and Sofremines work was competent and well done; drill density is sufficient for this type of deposit to calculate verifiable reserves; and process and beneficiation studies were thorough, given the technology of the time, and the market aspects were well considered. Their assessment of the Farim deposit based on the earlier work and current phosphate market conditions was positive and recommended further work including additional diamond drilling. Champion drilled 559 metres of HQ core in 13 diamond drill holes in early 1998. This program confirmed the BRGM results and extended the limits of the phosphate deposit a further three kilometres to the west, demonstrating that the potential is significantly larger than that delineated by the BRGM. In addition, the company commissioned Fertecon Research to complete a detailed phosphate marketing study. As part of this study Fertecon evaluated the international phosphate rock trade, identified priority markets for Farim phosphate rock and estimated the mount of phosphate rock that could be sold annually from Farim. The study concluded that the current global market would readily absorb production of up to 2,500,000 tonnes of acid-grade phosphate rock-concentrate grading 32 per cent P2O5 from Farim. The plan, under which the financing proposal was arranged, contemplates initial production in 2001 at a rate of 750,000 tonnes per year, well within the levels identified in the Fertecon marketing study. Financing would be subject to the work program outlined in the Jan. 5, 1999 news release and off-take sales contracts to be completed by May 1999. The Farim project is 100 per cent-owned by Champion Industrial Minerals, a wholly-owned subsidiary of Champion Resources. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com