Olympia updates C. Kalimantan zircon project

The following is an excerpt from Australian firm Olympia Resources? quarterly report ended Sept. 30, 2008, which released on Friday.

KALIMANTAN ZIRCON PROCESSING PLANT
During the quarter air tables were incorporated into the Sampit plant circuit and the previously produced zircon was retreated to remove free quartz. This produced over 500 tonnes of premium grade zircon. The declared production is however, only 52.4 tonnes reflecting the fact that most of the quarters production was from retreat of zircon produced earlier in 2008.

Sampit production was affected by the Muslim periods of Ramadan and Lebaron, which caused supply of feedstock to the factory to be reduced for 6 weeks

Various factory modifications were completed and a separate workshop facility was established during the quarter. The jetty was refurbished and is now operable to local vessels of up to 400 tonnes.

Negotiations commenced in September to finalise shipping arrangements for the first 500 tonnes of Premium grade zircon to China. This shipment is planned for late October or early November. As with production, the periods of Ramadan and Lebaron caused delays in the shipping schedule.

KALIMANTAN EXPLORATION
An exploration drilling program was completed on the Air Kuning KP in Central Kalimantan. This was sufficient to define the zircon resource which is being mined by local artisan miners. Olympia has a cooperative agreement with the KP holder to supply zircon concentrate from this area to feed the Sampit plant.

Further delays were experienced in relation to obtaining approvals for KPs. Applications have been submitted covering a number of areas including the Kubu South, the Sungai Air Hitam region, and the Sukamara and Sukamara South areas. These areas have been identified as very prospective for zircon and drilling will commence on these KPs as soon as they are granted. (end of excerpt)