MARAMPA - 15MTPA SCOPING STUDY DEMONSTRATES ROBUST PROJECT...

MARAMPA - 15MTPA SCOPING STUDY DEMONSTRATES ROBUST PROJECT ECONOMICS

Key Points:

A 15Mtpa Scoping Study to align the concentrate transport solution with the Infrastructure Agreement with African Minerals Limited for a standalone, open pit mining development at Marampa is now complete.

Stage 1 concentrate production is planned at 2.5Mtpa, with a Stage 2 expansion increasing concentrate production to 15Mtpa with an overall mine life of 15 years.

Capital investment for Stage 1 is estimated at US$435 million and US$1,927 million for Stage 2.

Stage 1 operating costs are estimated at $45 per tonne of concentrate FOB, with an average life of mine operating cost of $46 per tonne of concentrate FOB.

The Scoping Study Base Case has returned robust financial metrics including an ungeared (100% equity) after tax NPV10% of US$1.56 billion, an internal rate of return of 26.2% and after tax cash flows of US$5.99 billion.

http://www.asx.com.au/asxpdf/20121005/pdf/4295xybk0nc5gb.pdf