jabiru shares soar on consolidated move

i don't know about 'soaring'...but a somewhat informative article.

Cdchi1

Jabiru shares soar on Consolidated move
June 14, 2005 - 8:29PM

Shares in Jabiru Metals have soared after Consolidated Minerals took a stake in the copper and zinc developer.

Consolidated, which earlier this year took control of junior nickel producer Reliance Mining after a friendly takeover, has agreed to take five million shares at 25 cents each.

Jabiru said it welcomed Consolidated's recognition and support for its Jaguar copper and zinc project and the exploration potential of its nearby Teutonic Bore project.

Jabiru will use the $1.25 million proceeds from the placement for exploration drilling and to progress development of Jaguar, located 260 kilometres north of Kalgoorlie in Western Australia.

The news pushed Jabiru's shares as high as 22 cents before closing up 2.5 cents at 20 cents.

Jabiru began financing and sales negotiations to develop Jaguar earlier this year after studies indicated a $40 million mining and processing operation was viable.

The Perth-based company plans to develop a decline mine to access the ore body and an on site processing facility to produce 8,000 tonnes a year of copper in concentrate and between 25,000 tonnes and 30,000 tonnes a year of zinc in concentrate.

But ongoing drilling at the recent Daimler discover has the potential to increase the mineable reserves to much larger than those stated in the bankable feasibility study.

Jaguar is within the top five per cent of similar projects in terms of grade, which would put it within the lowest quartile copper cash costs per pound when compared with all other copper projects in the world.

Project capital required through to production of concentrates is around $41.0 million, providing a project life cash flow, after capital, of $65.0 million during a five year operating life.