Herald expects $1 billion gross revenue from Anjing Hitam zinc-lead project

Australian mining company Herald Resources Limited announced on Wednesday it had commenced bankable feasibility study (BFS) on its Anjing Hitam zinc-lead project in Dairi regency, North Sumatra with completion expected mid-2004 at US$2-2.5 million cost.

The company estimate over the life of the mine, the project would generate US$1 billion in gross revenue from production of 745,000 tons zinc and 471,000 tons lead.

?The BFS will be based on the mining of the Anjing Hitam ore reserves, presently 6.324 million tons at 16% Zn and 10% Pb, or 22% Zinc equivalent to be processed in a 1 million tons per annum flotation concentrator and to produce separate zinc and lead concentrates for shipment to overseas smelters,? said the company in its quarterly report.

Herald said total resources at the Dairi project are 71 million tons.

?Diamond drilling of a 7000-8000 meters infill drilling conducted at Anjing early October had intercepted 43 meters of massive sulphides, more than double the thickness anticipated in that position, highlights the upside potential of the Dairi project, and further drilling to test the significance of the results is in progress.?

The drilling is part of the BFS to elevate current resources status to measured status and to obtain testwork samples to enable remodeling for mine planning, scheduling and costing.

Beside Anjing Hitam BFS, the company also reported new zinc-lead discovery at Sinar Pagi prospect, which is also located within the Dairi project concession.

Herald also said that its 20 percent joint venture partner PT.Aneka Tambang Tbk. (Antam) had decided not to exercise option to acquire another 10 percent stake in Dairi project due to the latter?s focus to develop its ferronickel deposit in South-East Sulawesi. Antam has 20 percent interest in the Dairi project, with Herald holds the balance. (alex)