Finders gets loan for Wetar, targets 25,000 tpa of copper
Tuesday, July 31 2012 - 06:32 AM WIB
ASX-listed firm Finders Resources Limited recently stated it plans to develop the Wetar Copper Project at Kali Kuning and Lerokislocated on Wetar Island, Southwest Maluku in two broad stages.
After successfully operated a 1,825 tpa Cu demonstration plant, selling approximately 2,500 tons of LME Grade copper cathode to the Asian markets, Finders plans to increase production capacity to 7,000 tpa Cu and then 25,000 tpa Cu within a 24 month project construction period.
The company stated it has received credit approval for US$138m of facilities from a syndicate comprising of Barclays, Credit Suisse and Standard Bank. It has also received an investment committee approved term sheet for US$75m of mezzanine finance.
"Proved and Probable Mining Reserves of 8.2 million tons at 2.5% Cu from the Kali Kuning and Lerokis deposits support a nine year mine life," the company said about the 95 percent owned project in its quarterly report ended June 2012 submitted to the Australian Stock Exchange.
The project's updated feasibility study also revised its capital cost estimate to US$167.4 million or up 7.7 percent due to scope of power generation with more units and higher levels of redundancy. Its LOM operating costs, nevertheless, drop to US$1.07/lb Cu or approximately 90/lb at full capacity.
Though Finders' wholly owned subsidiary PT Batutua Tembaga Raya has recently being awarded with IUP Transport and Sales permit dated July 17, 2012 for 5 years, including exploration forestry permit that allows the production stage of forestry borrow use permit, Finders stated it's still waiting for the administrative process of Maluku Province Spatial Plan.
The company has appointed Garry Kielenstyn as General Manager of the Wetar Copper Project, previously working for Mt Muro Gold Mine.
Ojolali
Not to be forgotten is its Ojolali Gold and Silver Project, which the company said that low cost exploration continues to highlight district potential.
With widespread gold in soil over 8 kilometers area north south at 5 kilometers wide, the Ojolali project is an advanced gold-silver prospect within the Sumatran Gold Belt, in which the Jambi oxide gold deposit has the potential for 30 to 50,000 oz per annum.
Finders has identified a number of target types, namely bulk low grade disseminated gold at Jambi, North Jamni, Wujun, Belida and Supri, Bonanza grade gold-silver veins at Way Neki, Batu Kuning and Kencur, high grade Ag in supergene enriched sones at Tambang Oxide and Jambi, as well as major vein systems in feeder structures at depth at Jambi,
Tambang and Talang Harno.
The company stated it's currently undergoing field works through areas of shallow post mineral cover at the Belida, Talang Harno and Wujun prospects, mapping 1.2 kilometers of strong alteration with fine gold bearing veinlets at Belida, as well as similar areas at Talang Harno and mapping approximately 800 meters of new zone at Wujun.
As of June 30, 2012, the company stated to have A$3.8 million in cash, previously receiving A$5.4 million in the quarter as part of the A$16 million Amended Convertible Equity Linked Credit Facility from the previously A$8 million loan facility provided by its three shareholders, namely Resource Capital Fund IV LP, Taurus Funds Management Pty Limited and Acorn Capital Limited dated June 7, 2012.
Editing by Audy Er Zandri