Herald to commence N. Sumatra zinc-lead project BFS

Australian mining company herald Resources limited announced on Thursday it would soon commence bankable feasibility study (BFS) on its Anjing Hitam zinc-lead project, which is located in Dairi regency, North Sumatra. The company said the BFS would be completed in the second quarter of 2004 at the cost of US$ 2.7 million.

Pre-feasibility study indicated a mining inventory of 6.323 million tones of deposit at 16% Zn and 9.9% Pb (22% zinc equivalent) at Anjing Hitam.

The company said diamond drilling will be commenced soon to upgrade the current Measured and Indicated Resources to Measured status.

The company also said that it would proceed with environmental impact assessment study.

?Once the metallurgical works has enhanced the already substantial data base, detailed process and plant design and costing can take place. Similarly when drilling is almost complete, mine design will be carried using the geotechnical study information to determine the optimal mining scheme,? said the company.

Herald has 80 percent stake in PT.Dairi Prima Mineral, which runs the project, with state miner PT. Aneka Tambang Tbk. holds the remaining 20 percent. (alex)