sounds promising

Thomas,

I apreciate your including the monthly production in the latest presentation.

My question is in the March quarterly you referred to a quote for a new crusher having been recieved from a Chinese suplier.

Has this replacement been ordered.

Thanks

Good luck
Response From Phillip
Hi

We are currently working on an order for a significant amount of equipment - not just crushers, because as you know we are receiving $40m as part of the Shougang contract so we have a lot of new capacity to install - - we have had ongoing discussions with two manufacturers and also our mining planning people and geological team.

We have also had detailed work completed by our metallurgical and benefication processing team. The manufactruers want to send a team of engineers to inspect our data and the site and review the calcareous material. We have received a quote from an Australian company who will also visit soon regarding improved benefication techniques. We are also reviwing a new beenfication technology that has been installed in south africa that may increase our yields.

We also have a review going on of the parts that have worn and were replaced in March/April maintenance schedule and the number we have to buy to keep in stock vs those readiy available. Finally we have apower audit also underway to see what the best way is to access power. We use about $150K per month at the moment to run 6 diesel generators but we may use local power (4Km away) or takedown 345Kva to a substation 500m away from the plant. The new crushers run on 100hp motors so they don't use a lot of power.

The Chinese suplier does all its design work in the UK and they are also giving us input so we don't have a repeat of last time from so-called local "experts".

The mineralogical and benefication studies are very important as crush size dictates recovery and the number of times it has to go through the magnetic separators so we are putting a big effort in here.

regards


PT