One of the main challenges that we will face in start-up of the project will be Cameroon’s relative inexperience in the mining industry. We will need to work with the Government to develop and foster a commercially competitive operational environment which supports all aspects of the project, particularly indirect inputs such as shipping, customs, transport and logistics. Whilst aspects of this development process will be new, this allows us the opportunity to put in place a practical and cost effective operational system in partnership with the Government. We do not see the availability of resources as being a major issue with plenty of local labour available and recognition of the need to utilise skilled expatriate labour and imported materials and equipment, particularly for construction of the project.
corporatefile.com.au Is your Pre-Feasibility Study still on target for 2007? Have any of the results so far prompted review of the original parameters of your Pre-Feasibility Study? Managing Director Don Lewis We have commissioned WorleyParsons as manager of the Pre-Feasibility Study and they are focused on completion of the study by end 2007. WorleyParsons are currently playing a similar role in delivery of Fortescue Metal Group’s major iron ore project in Western Australia and we will certainly benefit from their experience. WorleyParsons are developing the total project scope from mine to ship and have key study teams in place with site investigations scheduled to proceed in August 2007. The study is progressing on the basis of the original parameters set out in our 2006 Scoping Study - production of 35 million tonnes per annum of direct-ship hematite with development of private rail and port infrastructure to transport product from the Mbalam mine area to the proposed port site south of Kribi.
corporatefile.com.au What infrastructure is needed to take your iron ore to market? Managing Director Don Lewis The Project’s critical infrastructure is the rail and port works and associated utilities. WorleyParsons are currently evaluating route and site options and collecting further baseline design data. We are mobilizing a team from South Africa to undertake an airborne laser radar survey later this month which will deliver detailed topographic data over the mine, port and key sections of the rail route. Construction strategies and costings will be developed as part of the Pre-Feasibility Study (PFS) with a particular focus on the major capital activities - specifically rail route and fleet selection. We are fully funded for this PFS work. Project funding options will be assessed over the course of the next six months as we complete the PFS. Discussions to date have indicated that, on the basis of proving adequate resource size and quality, financing of project infrastructure is reasonably available and we will look to introduce partners for product offtake and infrastructure delivery by early 2008.
corporatefile.com.au Can you summarise the exploration work undertaken in the June quarter? 4 Managing Director Don Lewis During the June quarter we have completed road access to site, established camp accommodation and set up exploration support facilities (including office, communications, medical support, fuel supply, etc). We have established survey control and an exploration drilling grid over the main Mbarga prospect with drill lines and pads established over a 10 km2 area. We have completed initial surface mapping of hematite mineralisation and received first assay results from this sampling. These surface sample results are very encouraging and will be reported to the market shortly. Wallis Drilling have mobilised the first two drilling rigs to site and drilling has commenced near the southern extent of the visible surface mineralisation. First core samples have been prepared and despatched to SGS laboratories in South Africa for analysis. We have also committed to construction of two additional RC rigs and manufacture of these rigs has commenced ready for mobilisation by the end of 2007. We are also now evaluating options to further increase our drilling capacity for our proposed 2008 Bankable Feasibility Study. As noted above, our Chairman visited site in early July and was very impressed with the extent and quality of mineralisation at surface on the Mbarga prospect and the general topographic expression over the south-eastern sector of our exploration permit which indicates further areas of prospective mineralisation.
corporatefile.com.au In light of this visit has the overall strategy for Sundance changed? Chairman George Jones Our strategy for development of the project, as outlined early in 2007, has not changed except for my intent to accelerate our exploration and development program given the very positive feedback received in my recent meetings with Government in Cameroon and my positive assessment of the exploration potential within our permit area. I look forward to reporting significant progress with our exploration and development studies over the next quarter.
corporatefile.com.au Thank you George and Don.
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