blackthorn resources' perkoa zinc project is v

Tuesday, September 01, 2009

Blackthorn Resources' Perkoa Zinc Project is viable at current zinc prices
by Proactive Investors

Increases in zinc prices have enabled Blackthorn Resources (ASX: BTR) to run the ruler again over its Perkoa Zinc Project in Burkina Faso, currently on care and maintenance.

Based on a zinc price of US$1,850 p/t, and estimated cash costs of US$1,500 p/t, SRK Consulting has concluded that Perkoa would be viable at current prices of around US$1,800 p/t.

The zinc price had fallen at one stage in late 2008 to US$1,100 p/t. Capital to complete the project is estimated at US$72 million, US$10 million lower than previous estimates.

Cash cost of production includes all site operating costs, logistics to point of sale and treatment charges. Perkoa is a distance from the port, so land transport, ocean freight and treatment charges together account for more than 60% of the total cash costs.

Subject to funding and that zinc prices are sustained, Scott Lowe managing director of Blackthorn, said he has a 2010 target to remobilise the project, with plant commissioning due in Q4 2010.

Lowe said that process plant footings are 85% complete and ready for assembly of process plant components. And that structural and mechanical works have already commenced.

He said some expressions of interest in the project have been received from potential partners. UBS has been engaged as financial adviser to assist in securing a Joint Venture partnership.

Thanks to `gerrykuan` for link to proactive investors

http://www.proactiveinvestors.com.au/companies/news/2409