Looks like ARH is really on the move now. Expect to SP on the rise to $2 Angers
AUSTRALASIAN ADVANCING WITH BALMORAL PROJECT DEVELOPMENT KEY POINTS • Project development for Balmoral South is advancing with the strong involvement of the Shougang technical team • Significant appointments to the project team Australasian Resources Limited (“Australasian” or “the Company”) continues to advance the development of its key assets, including its flagship Balmoral South Iron Ore Project which has strong Chinese backing. BALMORAL SOUTH IRON ORE PROJECT UPDATE The Study is progressing well under the leadership of Mr Nick Jukes, Study Director, with the following highlights: • Diamond drilling designed to provide samples for verification test work is due to be completed in October 2007. • A 24% increase to the Probable Ore Reserve was declared in August 2007 based on an independent study completed by Orelogy Pty Ltd. The estimate of 680 million tonnes (Mt) equates to approximately 207 Mt of high quality iron ore products or around 17 years of production at the nominated annual capacity of 12Mt per annum. • ProMet Engineers Pty Ltd, the lead engineering consultant, are progressing key process engineering work, including general arrangement drawings and cost estimates based on the agreed design criteria. • Technical meetings with CP Mining Management Pty Ltd (“CP Mining”) are continuing in relation to the detailed design and engineering of shared facilities, including the product stockyards and port. 11 September 2007 Page 2 • China Metallurgical Group Corp (MCC) of China has requested key project data in order to assist their preparation of bids to design, construct and install key process modules and infrastructure for the Project. MCC has already entered into key construction contracts with CP Mining to advance their neighbouring projects that are expected to produce 24 Mt per annum. • Key project characteristics have been prepared for submission to the EPA as part of the environmental approval process. The Shougang technical team established its office in Perth during August 2007 and the group has provided valuable input in the following areas: • Geological assessment • Test work program • Process design and engineering Shougang representatives have been active in introducing the Project and its compelling advantages to China’s leading international credit bank, China EXIM Bank (“EXIM Bank”). The continued interest of EXIM Bank provides added impetus to the Company’s plans to develop the asset with Shougang into a world class operation commencing production in 2010. SIGNIFICANT PROJECT APPOINTMENTS The Project team has been recently strengthened with the arrival of key technical and commercial personnel: Todd Axford – Exploration Manager Todd is a geologist with over 12 years of experience, including 5 years in the iron ore industry with Portman Mining and Mount Gibson Iron. He brings significant experience in iron ore resource development through the development and establishment of mining operations. Eduardo Valenzuela – Mining Manager Eduardo is a mining engineer with over 30 years of experience, with a strong background in mine project development, consulting, and operations management in Australia and overseas. He has held senior positions with BHP, Sundance Resources and Anaconda and is well versed in leading edge mining techniques. Martin Payne – Infrastructure Manager Martin is a mechanical engineer with 28 years in the development and management of major power station and infrastructure Engineering Procurement Construction (EPC) projects both in Australia and overseas. His knowledge and experience extends to managing large EPC projects with Siemens, General Electric, ABB, Alstom and Ansaldo which will be a key asset to the Company’s current objectives. Michael Issakov – Commercial Manager Mike is a Chartered Accountant with considerable experience in mining operations and projects. He has 8 years experience with one of the major accounting firms and 9 years experience with Normandy Mining. More recently he has worked for LionOre and Barrick. 11 September 2007 Page 3 Nick Rossetti – Project Controls Manager Nick Rossetti has over 30 years of resource project design and management experience, with the last 10 years specialising in project controls. He was the Project Controls Manager for Newcrest Mining Limited’s $1.5bn Telfer Project, and has recently assisted various organisations with strategic systems implementation on similar sized projects. Further information can be obtained from Andrew Caruso on +61 8 9322 2288.
ARH Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
