Title: Open Briefing®. Sundance. Chairman Site Visit Update Record of interview:
corporatefile.com.au Sundance Resources recently visited the 90% owned Mbalam Iron Ore Project in Cameroon. Can you outline the purpose of the visit and your general impressions? Chairman George Jones The purpose of my recent visit to Cameroon was primarily to review the status of our exploration program and to gain a direct personal view of the prospective mining area and its potential. I also wanted to meet senior Government officials to gauge the commitment of Government and the level of support that Government can bring to our project. Overall, it was an extremely positive visit. We received great support for our project and, in particular, a commitment to work jointly to develop the project as rapidly as possible with operational commencement targeted for 2011. I met with the Minister for Mines and we both travelled to site together with the Governor of the East Province, where the Mbalam project is located. I received great encouragement and enthusiasm from both. They were very impressed with our rapid progress on site in establishing and commencing our exploration work, and they were pleased to see the level of local employment and community engagement that we are already supporting. The Minister arranged a welcome dinner for our delegation with the attendance of senior Cameroon officials. The Minister also facilitated a meeting with the Secretary General's office of the President of Cameroon. 2 The Government's commitment to assist us was reflected in reaching agreement on our timetable to negotiate a Memorandum of Understanding (MOU) in respect of the fiscal terms underpinning the project. We are aiming to complete this MOU by end 2007. The Minister also gave his personal commitment to facilitate rapid export of drilling samples for analysis outside of Cameroon. In terms of our exploration program, I was certainly excited by what I saw of the Mbarga prospect, which as you know is the initial focus of our recently commenced drilling program. I traversed a significant extent of the Mbarga prospect, which extends over a strike length of at least 2-3 kilometres. I observed significant surface outcrop of very high grade hematite which, based on my experience in the iron ore industry, I estimate would grade anywhere between 64 and 68% Fe. I am sufficiently encouraged by what I observed of the permit area to commit to a significant acceleration of our current exploration work. I am now working with our management team to facilitate this acceleration. In terms of supporting infrastructure, I was pleased to see that we have established access to site and the general topography should allow reasonably ready development of permanent project infrastructure such as mine access and railworks. I also had follow up meetings with investors in the UK and the US after my visit to Cameroon. These meetings demonstrated very significant capital market support for high quality iron ore projects. I am confident that we will be able to raise the necessary capital to develop this project on the basis of our exploration program confirming a major high grade hematite resource within the Mbalam permit area.
corporatefile.com.au How important is the support of the Government in developing this project? Chairman George Jones Government support is critical to the development and success of our project. Ultimately, it is a partnership between Sundance Resources and the Cameroon Government. The project needs to deliver a win-win outcome for both parties. We can achieve this by delivering jobs and significant benefits to local communities in Cameroon and by delivering a commercially attractive return to Sundance shareholders. The support of the Government is key to our development timeline and it was very pleasing to note the Government's vigorous support for our 2011 target for commencement of operations. The Government expressed its strong desire to assist Sundance wherever it can to meet this timeline.
corporatefile.com.au What are the attractions to working in Cameroon? What are the operational and logistical challenges that accompany this start up project? Managing Director Don Lewis The Mbalam Iron Ore Project is a strategic development for Cameroon. The Government and the community want the project to succeed as it has the potential to transform the economy and deliver very significant employment and business opportunities. Development of the project will also facilitate broader progress in the country's development in terms of infrastructure and logistics support.
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