Aim Resources expects Burkina Faso BFS by mid-Dec Tue Nov 8, 2005 09:08 AM ET LONDON, Nov 8 (Reuters) - Australia's Aim Resources Ltd (AIM.AX: Quote, Profile, Research) (AIMq.L: Quote, Profile, Research) said on Tuesday it expects to complete the bankable feasibility study (BFS) at its Perkoa zinc project in Burkina Faso by the middle of next month.
Mark Flory, Aim managing director, said that fund raising of some $80 million is expected to be completed by the first quarter of next year, mine development to commence in the second quarter, with production starting in June 2007.
"We are also talking to around four smelters for offtake contracts," Flory said at a Minesite.com forum here.
Aim acquired 100 percent ownership of Perkoa from BHP Billiton (BLT.L: Quote, Profile, Research) and Meteorex in January for $1.1 million. The deposit is a 6.72 million-tonne resource, grading 16.4 percent zinc and 35.4 grammes per tonne of silver.
"This is a world class deposit -- it is fairly clean (concentrate) and we have had a lot of interest from smelters," Flory said.
On the London Metal Exchange (LME) zinc (MZN3: Quote, Profile, Research) prices hit eight-year highs on Monday of $1,583 a tonne, so Perkoa has an 'in ground' metal value of over $1.8 billion.
Flory said that the projected underground mine life is 16 years, and that the annual 160,000/180,000 tonnes of concentrate will be trucked some 1,200 kilometres to port for transit.
Metal production will boost the economy of Burkina Faso, which is one of Africa's poorest countries, and whose main exports are cotton and livestock at present.
"There is no mining industry there. Although there used to be gold and a number of companies are active there now, including Cluff Gold, Randgold (RRS.L: Quote, Profile, Research) and Aim," he said.
"It (Burkina Faso) will go from next to nothing to something very interesting soon," Flory added.
Aim is dual-listed at present, but is switching its focus to London, where its fund-raising activies are largely centered.
"We will be transferring a number of our key staff -- myself included -- in the next few months," Flory said.
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