4th q report

Titan Resources NL - Report on activities for quarter ended 30 June 2003 Page 5
BioHeapTM Process Development
Technical development work continued during the quarter with the progress of the large-scale column
tests in Perth designed to verify the laboratory results obtained on the in-heap generation of dilute
sulphuric acid by bacterial action on elemental sulphur. This process variation has the potential to
provide major cost savings and thereby substantial economic benefits to the overall BioHeapTM
Process route. Work also continued on the testing of nickel ores from China and from WMC – Leinster
and began on samples from the Widgiemooltha area. Trials on the bacterial leaching of chalcopyrite
ores from Mongolia and South America continued with excellent progressive results for the recovery
of copper, while several other interested parties have submitted copper ores for preliminary
investigation.
AUSTRALIA
The laboratory evaluation of residual mineralised material from WMC Resources Limited mines at
Leinster is approaching completion. While negotiations are continuing, no Agreement has yet been
reached as to the future of this opportunity. Testing of disseminated nickel ores from Titan’s own
deposits in the Widgiemooltha area has started and is likely to become a major focus of interest over
the coming months.
The large-scale column tests of the in-heap generation of sulphuric acid from elemental sulphur using
bacterial action are now in full swing and will form an important part of the future use and planning of
the leaching of nickel ores in the eastern goldfields of WA.
Work is about to commence on the testing the bacterial leaching characteristics, using the company’s
proprietary cultures, on an Australian chalcopyrite deposit.
CHINA
The Jinchuan Group are currently evaluating a comprehensive process route, designed by Titan, for
the extraction of nickel from their very extensive low-grade reserves. This plan also involves a method
to recover the water and sulphuric acid accompanied by the production of a magnesium by-product
to integrate the nickel extraction and improve the overall economics. The two companies have also
signed a Memorandum of Understanding to jointly promote the application of the BioHeapTM Process
to other nickel and base metal deposits within China. Following that Agreement, Jinchuan have
introduced Titan to a group of large nickel sulphide deposits near the city of Hami, in a remote
area,1,850 km west-north-west of Beijing and 850 km north-west of Jinchang. A Titan metallurgist
visited the area in March this year, in company with Jinchuan personnel, to assess the suitability of
these ore deposits to the BioHeap™ treatment route.
Production from the Hami nickel field is currently from three areas: Huang Shan East and West and
Xiang Shan. At present the confirmed resources at the two Huang Shan deposits is 140 million tonnes
of mineralisation containing 690,000 tonnes of nickel metal. There are strong indications of significant
extensions to this mineralised system. The Hami operating companies are keen to substantially
increase their nickel production and see bacterial leaching as potentially the most beneficial
processing method for these very large ore deposits. The first step in this direction has now been
taken with a composite sample of ore from the three deposits being sent to Australia for testing in
Titan’s Perth laboratories. Preliminary work on this sample has begun.
COPPER
The bacterial leaching of chalcopyrite (copper) ores from Mongolia and South America is in progress
and producing excellent copper recoveries. The nature of the ore deposits and full details of the
success of both of these trials are subject to the provisions of commercial confidentiality, but the
company is extremely encouraged by the progress and the developments in this area.


I have only included the bio-heap news, as the previous drill results are already well known.