19:36, Friday, 8 October 2010 Sydney - Friday - October 8: (RWE...

19:36, Friday, 8 October 2010

Sydney - Friday - October 8: (RWE Australian Business News) -
Atomic Resources Ltd (ASX:ATQ) has corrected figures announced to the
ASX on September 20.
In that announcement it was stated that capital costs of the
Mbalawala Coal Project in Tanzania were estimated to be $US205m.
The correct capital cost for the first three years is estimated
to be $US98.3m.
As the company prepares for a series of investor presentations
this estimate capital cost has been clarified as follows:
* The announced estimate of $US205m is the total expected
capital expenditure for the entire 25-year life of mine, not the
estimated upfront capital expenditure.
* The estimate included provision of $US95.62m for mining fleet
purchases (including replacements) over the life of mine. It is likely
that this will never be incurred as mining contractors are the more
likely option.
* The capital expenditure (capex) for the first three years is
estimated to be $US98.3m, broken down as
- access roads & bridges $14.5m
- coal handling plant $11.2m
- site infrastructure $34.3m
- engineering & owner's costs $20.5m
- light vehicles $1.4m
- working capital $16.4m.

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Managing director Mr Clinton Cain said, "Atomic will be
presenting details of the Mbalawala bankable feasibility study to a
variety of analysts, brokers and investors next week, and it was
important for us to clarify the capex figure and reassure the market
that the projected upfront capex for Mbalawala is significantly lower
than the amount quoted in our previous announcement."
ENDS