Finders reports Maluku copper project activity
Wednesday, April 30 2008 - 02:47 AM WIB
1. Wetar Copper Project, Maluku
Finders Resources Limited ~72% and earning through expenditure
Demonstration Plant
A key component of the Wetar Feasibility Study is the construction and operation of a 5 tpd copper cathode Demonstration Plant. This plant will replicate all aspects of the planned full scale 20-25,000 tpa cathode operation. Calder Projects have been awarded the EPCM contract for the project.
Finders? have previously indicated a US$6.25M capital cost for the demonstration plant and the project is currently within budget. The majority of equipment used for the plant is fabricated off-site and then shipped to Wetar for installation.
Progress this period includes the following:
Mobilization of major equipment items
Following delivery of heavy equipment and fuel tanks in early January, a second shipment was completed in mid-April. Equipment on the second shipment included:
? Mixing and reagent tanks for the SX plant,
? A three-stage crushing plant and wheel loader,
? HDPE lining and poly-pipes for the leach pad,
? Three 500 kva diesel generators for power generation,
? Steelwork for the plant buildings.
Infrastructure
During the quarter, on-site camp and office renovations were completed including the establishment of workshop and warehouse facilities and a medical clinic. The existing road to the Kali Kuning pit was upgraded and land cleared at the teach pad and process plant site.
Fabrication and Design
All outstanding items requiring fabrication are well underway with completion of the crushing & stacking conveyors expected by end May and the electrowinning (EW) cells and cathodes expected by mid-May. The longest lead-time item is the rectifier, which is scheduled for June delivery.
Design work is complete, bar detailed electrical design which suffered a 4-6 week delay during the period due to problems with contractor availability.
Project Timing
The balance of equipment required for the demonstration plant will be mobilised by two further shipments and commissioning of the demonstration plant is scheduled for July 2008; in-line with Finders? target for cathode production by mid-2008.
Feasibility Study
The feasibility study for the full scale 20-25000 tpa cathode operation is running in parallel with the construction of the demonstration plant. Finders estimate that approximately 3-4 months of operating results from the demo plant will be required to finalise the feasibility study.
Finders continues to work with several consulting groups with a view to completing studies on geotechnicat and leach pad design (SRK Consulting), environmental management (HLA-ENSR), iterative mine and waste dump scheduling (AMDAD) and an assessment of power options for the commercial scale project (Calder Projects).
Two drill rigs have been mobilised to the project area to complete an upgrade of the Kali Kuning and Lerokis resource estimates, an evaluation of copper suiphides contained within the waste dump area of the former gold mine, final pit wall and leach pad area geotechnical studies, sterilization drilling and wells for monitoring ground water.
Metallurgical test work
During the period, the Company continued to receive results from ongoing laboratory scale leach test work being undertaken at HRL in Brisbane and Ammtec Ltd in Perth. It should be noted that these progress results are based on extrapolation from solution assays, and that definitive recovery figures will require completion of solids assays and mass balances on completion of the tests.
At HRL, four new 2m column tests using non-proprietary bacteria at elevated (45?C) temperatures have commenced to further assess effects of crush-size on recovery rates. Results to date (below) show little difference in leach rates between the different crush sizes.
Six column tests using BioheapTM technology at the Ammtec Ltd laboratory have now been ongoing for 8 months out of a planned leach time of 10 months. Oxidation continues on all columns.
The Kali Kuning columns continue to display copper release at steady rates, with over 82% Cu leached thus far in the 1m tall columns. Iron oxidation remains low, indicating preferential oxidation of zinc and/or copper minerals over pyrite.
The Lerokis columns, as anticipated, have begun to show rapid copper release to over 60% recovery and the observed increase in rate of iron release is interpreted to indicate a change from sphalerite leaching to chalcopyrite/pyrite leaching, as anticipated in the December 31g quarterly report.
Permitting and Tenements
The Company hosted visitors from the Environment Impact Control Committee (BAPEDALDA) of the Maluku provincial government as part of the permitting process for the planned full scale operation. During the visit, the Company completed socialisation of the project with our host communities and presented material on the Company?s community empowerment program.
Final approvals were received for the new exploration permits which cover prospective areas defined by the 2007 geochemical program within the South Coast general survey permit area.
Exploration
No exploration activities were undertaken during the Quarter due to the wet season. This program will recommence during June/July with initial geophysical surveys planned for the Pantai Merah prospect. (end of edited excerpt)