Hi AllHere's Rob's response to my questions re heap leaching. He...

Hi All
Here's Rob's response to my questions re heap leaching. He is appropriately conservative but if the technique works then we could be on an early path to production.
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Feedback: David Sealey Stage Development


Hi Rob

I have been reading over the latest activities report and am excited by the work that is being done. its a very encouraging report. I am particularly interested in the heap leaching concept with the preliminary results looking very promising. It seems to me that the small loss of reserve is acceptable given it will be a relatively cheap way to get started quicker. The resultant payoff in terms of cash flow from high prices can then fund preferred methods.

Questions
1. How long will it take to be confident of the commercial viability, or otherwise, of heap leaching?

2. Assuming viability, completed BFS and the project financeable, how long approximately would you estimate it would take to get heap leaching up and running, including time to get finance?

3. Am I right in interpreting that the Iranians are very supportive of all this work?





Union Resources Reply:



Thank you for your email. Basically Union had to find a way to get moving this project to retain the project and so its shareholders, get some advantage from the current zinc prices.

Unfortunately the optimum case development of 400,000 tpa zinc metal would take some years to get off the ground.

Heap leaching the oxide ore offers opportunity for cash flow at modest capex, commencing, I would hope within 12-18 months.

However, it is important to be reminded that no one has done a zinc heap leach before. Whilst the column leach test we have done indicated that it should work, I am told by our metallurgists they need about 3 months, before we know for sure whether it will work successfully.

Kind Wishes
Rob Murdoch