www.findersresources.com
Finders Resources (ASX:FND) operations include development of the Wetar Copper Project and the Ojolali Gold/Silver project. The Company has 95% interest in the Wetar Copper Project, Indonesia which has completed its demonstration phase and is moving into the construction phase of its 250,000 tpa SX-EW operation.
Ojolali is a highly promising gold/silver prospect in South Sumatra.
Finders Resources ticks off 'positive' Wetar Copper Project DFS
Finders Resources (AIM, ASX: FND) ticked off a Definitive Feasibility Study for the Wetar Copper Project during the December quarter, which was positive with estimated life of mine operating costs of US$1.00/lb Cu.
The Wetar copper resource is contained in 2 separate massive sulphide deposits, Kali Kuning and Lerokis in eastern Indonesia which are located within 3km from the coast and suitable for open pit mining.
As scoped the project DFS arrived at an Net Present Value of US$240 million pre‐tax at $6,500/t Cu, with a a total funding requirement of up to US$118 million.
The DFS envisaged three stages of project development, with Stage 1 being the expansion of the current 1,800 tpa copper cathode demonstration plant to 5,000 tpa, followed by Stage 2, final expansion to 23,000 tpa copper cathode utilizing the Whim Creek SX/EW plant. Stage 3 is the development of the Lerokis pit and haulage of Lerokis ore to the Kali Kuning plant to maintain copper cathode production at 23,000 tpa.
During 2009 Finders constructed and operated a 5 tonne per day SX‐EW demonstration plant to optimise process design and provide data required for the Definitive Feasibility Study. The test heaps are at heights similar to commercial operations worldwide and the SXEW technology being used is industry standard. SX/EW technology is currently responsible for approximately 22% of the world’s copper production.
On 23rd December 2009, Finders completed the outright purchase of the Whim Creek SX/EW plant from a subsidiary of Straits Resources Limited (ASX: SRL).
The Whim Creek SX/EW plant can produce up to 18,000 tonnes of copper cathode per annum and is well suited to Finders’ needs at the Wetar Copper Project.
With the plant, Finders can move closer towards development of the full scale project, by providing certainty of both supply and timing for key components for the development, as well as significant cost savings compared to the purchase of new equipment.
The Whim Creek plant is currently located in Western Australia.
Finders has already commenced dismantling work and preparations for transportation to Wetar.
The Expanded Demonstration Plant project delivery study has been completed. A revised scope contemplates a 7,000 tpa cathode capacity (up from 5,000 tpa). This will use the Whim Creek plant to reduce capital requirements. Board approval is scheduled for next quarter.
At Finders' Ojolali Gold-Silver Project, diamond drill testing of new areas of epithermal gold silver veining at Way Neki is underway.
The strategy at Ojolali is to increase the oxide gold resource to +300,000 Oz Au, to provide the basis for a low cost 30-50,000 Oz gold per year open pit mine based on the Jambi oxide resource, and to use the cash flow from this plant to fund exploration for additional resources and progressive expansion of the project.
Initial results include: 1 m at 8.13 g/t Au from 60.7m in WNK04 and 6.25m at 1.3 g/t Au and 24 g/t Ag from 14.7m in WNK01.
A detailed remodelling of geological controls for the Jambi oxide gold deposit is now complete.
As at 31 December 2009, Finders had $7.6 million in cash.
A total of 13,421,439 fully paid ordinary shares were issued to a subsidiary of Straits Resources Limited in consideration for the acquisition of the Whim Creek SX/EW plant.
