Olympia Resources updates Kalimantan zircon projects
Friday, August 1 2008 - 03:34 AM WIB
Kalimantan zircon project
The Sampit processing plant operated well during the quarter and commenced operating on a two shift basis towards the end of the quarter. The quality of the zircon product continues to be affected by remnant free quartz. Three air tables have been purchased and delivered to Jakarta. These will be installed at Sampit in late July to correct this problem. Rather than sell low quality zircon at a reduced price Olympia has decided to retreat most of the production to date to bring it up to Premium quality. This will be done during August with the first sales of Kalimantan zircon expected late in August or early September.
Although Olympia did not intend to delay zircon sales there has been an unplanned bonus in the delay due to an increase in the sales price of zircon in China. This increase of $80 per tonne occurred in July and substantially increases returns to Olympia.
Kalimantan project
During the quarter drilling was carried out on the bather system on the Sambas KPs. (tenements) although heavy mineral was found in several areas it was low in zircon and as such did not indicate a mineable resource. Drilling was stopped in this area. Olympia intends to drill elsewhere in the Sambas area with a Bangka drill rig into deeper paleochannels at a later date. These deeper paleochannels are prospective for gold and zircon.
Drilling in the Air Kuning area of Central Kalimantan was successful in identifying mineralisation of 0.1% to 0.3% zircon. This grade is suitable for mining by local artisan miners and an agreement has been signed with the KP holder to supply zircon concentrate from this area to feed the Sampit plant.
Discussions are continuing with the local Bupati for access to KPs in the Kubu South area of Central Kalimantan. In addition applications have been made for KPs in the Sukemara area. These areas have been identified as very prospective for zircon. Drilling will commence on these KPs as soon as they are granted
Agreements are being progressed with KP holders in the Sintang area. This is a well established gold mining area where there are several paleochannels prospective for both gold and zircon. (end of excerpt)