Part of this was posted yesterday, but this is the expanded version and goes into a little more detail.
QUARTERLY REPORT TO 30 JUNE 2002 HIGHLIGHTS Ginkgo testwork continued at the E M S facility newcastle funded by BeMaX.
Austpac Resources N.L. and Ticor Limited advanced with negotiations on a new agreement to replace the current world-wide agreement for the use o f the ERMSEARS synthetic rutile process announced in July 2000.
Austpac and Ticor are also renegotiating the AusRutile agreement with Indian Rare Earths Limited (IRE) to cover the feasibility study and possible development of a 100,000 tpa ERMBEARS facility at Chatrapur. The original agreement, signed in October 2000, envisaged building a 10,000 tpa EMWEARS synthetic rutile plant adjacent to IRE’S heavy minerals processing facilities near Chatrapur in the state of Orissa, India.
Austpac is currently involved in negotiations with a North American corporation with a view to forming a fully financed joint venture involving the establishment of an ERMSlEARS synthetic rutile plant in conjunction with au international mineral sands development.
Austpac is also involved in negotiations with a major Australian company for an exploration joint venture in the Murray Basin.
Testwork for a European group to reduce chrome levels in an ilmenite concentrate from a large heavy mineral saud deposit is being planned for the next quarter.
GJNKGO TESTWORK CONTJNUES During the quarter a series of ilmenite concentrates from the Ginkgo deposit in NSW wcre batch roasted at Austpac’s Kooragang Island pilot plant. This objective of this work, which is being undertaken for and funded by BeMaX Resources N.L. on behalf of the BIP Joint Venture, is to maximise chrome removal from Ginkgo secondary ilmenite concentrate and develop the most cost efficient design for the separation plant. The batch testwork was conducted to establish the conditions that gave the optimal titanium recovery at a market-driven chrome cut-off. BeMaX’s preferred coal was used as the fuel for these batch roasts. The results have been used to establish the roast regime for the definitive continuous roasting trial planned for August 2002. A 1.5 tonne represenrative sample of ilmenite concentrate from Ginkgo has been prepared by Roche Mining (MT) and delivered to Austpac’s Newcastle pilot plant. .Modifications and additions to the roasting equipment are nearing completion in readiness for this trial. The definitive roasting trial run will determine the specific operating conditions essential for final plant that the plant will meet the air quality requirements, as described in the development consent for the mineral design. During the trial, roaster off-gas will be continuously monitored to collect data necessary to confirm separation plant. Austpac is participating in a consortium led by Ausenco Limited, which is providing the detailed engineering magnetic separation plant. The data from the continuous roasting trial will enable Ausenco to complete the design and will provide the commissioning support and performance guarantees for the roasting and roaster equipment selection, layout and design, and operating and capital costs.
RE-NEGOTIATION OF TICOR AGREEMJCNT Further to the announcement by Austpac on 12 July 2002, negotiations between the Company and Ticor Limited continue to advance in respect of new arrangements to replace the current world-wide agreement for the use of the ERMSffiARS synthetic rutile process. Details of these new arrangements will be released upon the execution of the agreements, which is expected shortly.
AUSRUTLLE PROJECT. INDIA Austpac and Ticor are also renegotiating the AusRutile agreement with Indian Rare Earths Limited (IRE) that was signed in October 2000. The original AusRutile agreement envisaged building a 10,000 tpa ERMSEARS synthetic rutile adjacent to IRE’S Chatrapur heavy mineral processing facilities in Orissa. The Austpac-Ticor Joint Venture has expended more than $2.5 million on pilot plant test programs, engineering feasibility and assessment work on the AusRutile Project. The proposed new AusRutile rutile facility, which would incorporate Austpac’s proprietary EMSEARS technology. The plant would agreement will cover the feasibility study and possible development of a 100,000 tonnes per year synthetic process ilmenite produced from the very large high grade heavy mineral sand deposit at Chaeapur.
NEW PROJECTS - INTERNATIONAL Austpac recently informed the market of negotiations with aNorth American corporation in relation to a new joint venture involving the establishment of m ERMSEARS synthetic rutile plant adjacent to an has the potential to support a major synthetic rutile facility. international mineral sand development. The joint venture will be fully financed and the mineral sand project The final terms of the agreement will be announced as soon as these negotiations are completed, as they are subject to confidentiality undertakings.
MURRY BASIN E.L. 4521 in the Victoria portion of the Murray Basin covers the very large, WlM 150 heavymincral deposit. Austpac has focussed on the beneficiation of the fine grained minerals and during the quarter a heavy mineral concentrate was prepared at Roche Mining’s facilities at Carrara in Queensland. The concentrate was producedusing fine spirals, tables and WHIMS and recoveries were commercially acceptable. An ilmenite sample was then processed at the Newcastle pilot plant, and a good synthetic rutile containing >95% Ti02 was produced. Testwork continues with a view to optimising the treatment of W l50 material. During May 2002 Ticor funded a short drilling program to follow up a possible narrow coarse grained strand linein the western part of E.L. 4521. Austpac and Ticor are now satisfied there is no possibility of a commercial discovely of coarse grained minerals within E.L. 4521.
Austpac is negotiating with a major Australian company with respect to a new exploration joint venture in the Murray Basin. Details will be released once the agreement is signed, which is expected in August 2002. ------------------------------------------------------
The two annoucements due this month should boost the stock a little bit. Most people still holding the stock are holding medium to long term. Any rise will likely come from traders. I can't see it dropping below 6 cents. My target is 7-8 cents by the end of the month.
APG Price at posting:
0.0¢ Sentiment: None Disclosure: Held
