Aussie firm enters C. Kalimantan iron ore project
Tuesday, February 24 2009 - 11:49 PM WIB
Lincoln will earn a 45% interest in the project by spending up to US$2 million on the initial mining and exploration program for Desa Mirah where early sample testing by Lincoln has returned extremely pure, high-grade assays of up to 68.7% Fe.
Subject to certain rights to withdraw, Lincoln will acquire a 45% interest in the Project. If it is determined within 12 months from the date of the Heads of Agreement that the mining concession contains less than 250,000t of iron ore (with an average grade of at least 63% Fe), then Lincoln?s obligations shall cease and it may surrender its 45% interest.
The project area covers nearly 5,000 hectares of exploration concessions, including a 200-hectare mining area where trial mining of Direct Shipping hematite Ore (DSO) has already commenced.
?Under the terms of the Agreement, funds will be provided by Lincoln Minerals on an ?as needs? basis but the arrangement of the proposed joint venture is such that proceeds from ore sales can be offset against our contribution obligations,? the company said.
?We plan to commence an on-site drilling campaign as soon as practicable as our own field work at Desa Mirah has identified iron outcrops both within and outside of the mining area, containing in excess of 61% Fe.
?Once a suitable ore body is established, it is planned to develop a small scale, high grade mining operation producing around 250,000 tonnes of iron ore per year and increase that output as further resources are defined?
Samusa ? which mines iron ore, iron sand, lead, manganese, copper and chrome ? has secured a sale contract with a Chinese buyer to purchase the 7,000t ore stockpile from trial mining, using a new barge-loading facility constructed by Samusa 70 kilometres from the mine at Pundu, on a river linked to the river port of Sampit.(denny)