Finders updates Maluku copper project

The following is an excerpt from Australian mining firm Finders Resources Limited?s update report released on Monday.

Commencement of operations at Wetar Copper Project Demonstration Plant
Finders Resources is very pleased to report that following a three-week commissioning phase for the crushing and stacking circuit, mining and continuous stacking of ore for the demonstration plant has now commenced. It is envisaged that the irrigation of the stacked ore will commence on, or around, December 24, with first copper cathode production scheduled within two to three weeks from irrigation.

Resource estimates further upgraded and reported to JORC Code and Guidelines
The resource estimates (Table 1) for both the Kali Kuning and Lerokis massive suiphide deposits have been upgraded to +98% JORC Measured and Indicated categories. This is based on the results of 41 new reverse circulation and diamond drill holes at Kali Kuning, and 21 new reverse circulation and diamond holes at Lerokis. The new resource estimate has been independently estimated by Hellman & Schofield Pty Ltd and reported according to the JORC Code and Guidelines.

The combined resource estimate for Kali Kuning and Lerokis, at a 0.5% copper cutoff, of 9 Mt at 2.4% copper, or 218,000 tonnes of contained copper, represents a 10% reduction in total copper compared to previously announced estimates, due largely to the tighter control of the massive sulphide boundaries from closer spaced drilling at the Lerokis deposit. It is expected that almost all of the Measured and Indicated Resources will be converted into Ore Reserves upon the completion of further mine planning and feasibility work.

Based on the new drilling the Kali Kuning massive sulphide resource has been re-classified into three metallurgical sub-types, Leached, Transition zone material and Primary massive sulphide, (Table 2). The Leached and Transition types reflect incipient in-situ leaching of the massive sulphide unit by natural groundwater. The Transition zone material, although of lower copper grade than the main Primary massive sulphide, (1.5% Cu vs 2.9%Cu) contains a higher proportion of readily leachable copper minerals which translates to significantly faster leach rates for this material, as described below. The Transition zone occurs at the highest levels of the deposit and will comprise a major proportion of early mined mineralization for the expanded Wetar copper project.

Excellent new leach results
Given the higher grade of the transitional mineralisation from recent drilling, metallurgical test work on this material has been instigated at site with two new column tests. Though still at an early stage, the results are very encouraging with 57% copper recovery achieved within 13 days, subject to final mass balance calculations. These results are significant for the expansion project, since the SX-EW plant is likely to achieve nameplate capacity much faster than previously expected due to the fast leaching nature of the Transition mineralisation.

New Indonesian Mining Law
The company advises that the new Indonesian mining law, which was passed last Tuesday, is unlikely to have an adverse effect on the Wetar project. As a producer of copper metal on site, the Wetar project complies both in letter and in spirit with the Indonesian government?s push for ?in country? processing within Indonesia. Our work to date under the KP title system in Indonesia involves essentially the same permitting system through the local government as required under the new law, and we will continue to benefit from existing relationships established with the local Government agencies. Government copper metal royalties are expected to remain at 4% and should be differentiated from the 10% royalty applicable to new projects within ?State Reserve Areas?.

Chris Farmer, Managing Director commented: ?We now believe that the logistical and supply delays relating to establishing the Wetar demonstration plant are largely behind us. The commencement of stacking of the heaps represents a major milestone towards copper production at Wetar.

We see the new Indonesian Mining Law as a positive for the Wetar project, and our work to date has been carried out on the understanding that the new Mining Law was likely to be implemented. Despite the current low copper price, the Directors believe that the Wetar copper project?s grade and cost structure will continue to justify its early development. This will make us one of the few junior miners with prospects in exploration, development and production.? (end)

Table 1

?	Category				Attributable (92.8%*)
		Tonnes (M)	Cu%	Cont. Cu (KT)	Tonnes (M)	Cont. Cu (KT)
Kali Kuning 0.5% Cu Cut-off grade	Measured	5.2	2.6	133	4.8	123
	Indicated	0.9	2.5	22	0.8	20
	Inferred	0.1	1.8	2	0.1	2
?	Total	6.1	2.5	156	5.7	145
Lerokis 0.5% Cu Cut-off grade	Measured	2.1	2.4	51	1.9	47
	Indicated	0.5	2.1	10	0.5	9
	Inferred	0.1	1.4	2	0.1	2
	Total	2.7	2.3	62	2.5	58
	Overall	8.8	2.4	218	8.2	203
Note:*Attributable: Ownership is based on estimates of project expenditure to end-November 2008 and is subject to final audit

Table 2. Breakdown of Kali Kuning by metallurgical zone

?	Zone	Tonnes (M)	Cu %	Cont. Cu (KT)
Massive Sulphide	Leached Zone	0.1	0.7	1
0.5% Cu cut-off grade	Transition Zone	1.2	1.5	17
	Primary Zone	4.8	2.9	138
	Total	6.1	2.5	156