Finder revises development strategy

(26 July 2013) -- Finders Resources Ltd is pleased to announce that its? refreshed Bankable Feasibility Study will be based on a revised development strategy which will provide for faster delivery and increased production flexibility. The previous two stage expansion will be replaced by a simpler construction plan involving the expansion of the existing Whim Creek SX-EW plant to 25,000 tpa copper cathode capacity.

Changes in the strategy were enabled by several key elements. Design changes to the heap leach pad located in the Kali Kuning pit allow for earlier stacking of ore to support rapid ramp-up of a single, larger SX-EW plant at full capacity. New availability of mining contractors in Indonesia allows significantly enhanced fleet flexibility and productivity.

The engineering modifications to lift capacity of the existing Whim Creek plant to 25,000 tpa are less capital intensive than the previous 7,000 tpa Stage 1.

The new reserves announced last week also have an impact on mine life, with production from Kali Kuning and Lerokis now likely to support an 11-year operation.

Finders expects to commence the upgrade of the existing Demonstration Plant to 3,000 tpa capacity and mining of new ore this quarter with production recommencing in late Q4 2013. At current copper prices, the plant would generate $1.75m revenue per month and provide working capital as project finance for the main plant is completed.

Together, the upgraded Demonstration Plant and expanded Whim Creek plant will provide flexibility to achieve 28,000 tpa Cu and realize any benefit from anticipated increases in copper grades and recoveries and, importantly, the potential of additional resources from the satellite deposit at Meron.

Managing Director, Chris Farmer commented ?This is important progress for the Wetar Copper Project allowing us to reduce risk during the construction and commissioning stages of the project and reduce the construction period allowing for full scale production nine months ahead of the previous schedule. The new development plan allows for simpler implementation with activities focused on a single plant construction and operational cost savings expected from running a single plant rather than the former split site operations?. (ends)