re: re:laf -skippa/mining nut _philippines reality This info...

re: re:laf -skippa/mining nut _philippines reality This info from LAF web page indicates approvals are in place to proceed to mining. Is it likely these approvals will be revoked or are different obstacles that could hinder mine production? lrj

Lafayette's operational focus is on the development of the Rapu Rapu polymetallic (copper-gold-silver-zinc) mine in the Philippines.

Development of the Rapu Rapu project has entailed four years of intensive multi-faceted studies by engineers, mining specialists and environmental consultants, as well as ongoing drilling and extensive metallurgical testwork.

A definitive feasibility study of the project, independently carried out by the Australian arm of Fluor Daniel, concluded that the project is robust both technically and economically. This conclusion was supported by Resource Service Group Limited, who performed an independent technical audit of the project on behalf of Standard Bank London Limited.

In July 2001, the Secretary for the Department of the Environment and Natural Resources granted an Environmental Compliance Certificate (ECC) to the project, thereby giving the consent of the Government of the Philippines for the mine to be developed. Subsequent to this, approvals have been granted for the Environmental Protection and Enhancement Program, Foreshore and Miscellaneous leases and Declaration of Feasibility. Subject to the availability of finance, these approvals enable mine and plant construction to commence.

Project economics are excellent with a high rate of return and rapid pay back period assuming current metal prices.

The initial mine life is six years of open cut mining, processing 1 mtpa of ore. There is excellent potential to expand this considerably through underground development of deeper extensions of the ore body as well as the development of the satellite "Hixbar" resource identified 2.5kms to the west of the mine.

Construction is planned to commence in 2003 with first production in 2004.

Lafayette has access to approximately half of the island area and the exploration potential for this land is considered excellent. The style of mineralisation seen at Ungay and Hixbar lends itself to be repeated along structures of strike length of up to 10km.