Ann: Quarterly Activities Report and Appendix 5B , page-7

re: Ann: Quarterly Activities Report and Appe... summary of the quarterly from miningweekly:-

http://www.miningweekly.com/article/cape-lambert-looks-to-submit-enviro-studies-by-third-quarter-2011-05-02

PERTH (miningweekly.com) - ASX-listed resources firm Cape Lambert has told shareholders that the environmental impact study for its Marampa iron-ore project, in Sierra Leone, would likely be submitted by the September quarter of this year.

In its quarterly report for the three months to March, Cape Lambert told shareholders that the environmental and social studies for the Marampa project were advancing, with the environmental and social impact assessment conducted during the quarter under review.

The environmental and social studies being undertaken by Cape Lambert were aimed at further optimising the scale, capital and operating costs of the project, as well as defining the implementation timelines.

A recently completed scoping study into the Marampa project has found that an initial capital investment of $655-million would be required to support a five-million-ton a year open-cut operation.

The study investigated the establishment of a stand-alone pit operation, which could be expanded to 10-million tons a year, as well as the supporting infrastructure necessary to produce high-grade hematite concentrate. The study was based on a maiden inferred mineral resource of 197-million tons, at 28,5% iron.

On the base case scenario, the Marampa iron-ore project could have a net present value of around $1,37-billion, and a free-on-board cash operating cost of between $58,50/t and $63/t of concentrate.

Cape Lambert has previously reported that the Marampa project could be in production as early as 2012.