all the set backs have been factured in already.sp will move...

all the set backs have been factured in already.sp will move back up. oversold

LAFAYETTE MINING LIMITED
ABN 88 076 390 451
Suite 1, Level 5
189 Flinders Lane
Melbourne
Australia VIC 3000
Telephone: +61 (0)3 9654 6044
Facsimile: +61 (0)3 9654 6010
E-mail: [email protected]
Website: www.lafayettemining.com
For Release: 1 December 2005
Lafayette provides update at Rapu Rapu
As previously advised, operations at Rapu Rapu have been suspended while the plant is
being reconfigured from gold processing to base metals processing. The two recent
discharges of process water have caused the relevant authorities in the Philippines to require
that certain conditions are met before milling operations can re-commence.
Speaking from the Philippines where he is personally overseeing remediation and
commissioning activity, Lafayette’s Managing Director, Mr Andrew McIlwain, said the
Company was confident that it was close to delivering full compliance with six conditions
identified by the government’s Mines and Geosciences Bureau (MGB) as a pre-condition to
start-up.
He said that because of the two recent discharges, Rapu Rapu management, along with
government and local community representatives were conscious of not rushing the
commissioning process.
“While we have a rigid commissioning process in place for the base metals plant, we are
mindful of recent events, so we will check and recheck every step before we begin production
from the new plant,” Mr McIlwain said.
“Accordingly, we do not expect to begin base metals production during December as we had
previously advised. With December traditionally the wettest month of the year, we will now
use that time to review our processes and systems to ensure there is no possibility of any
other unforeseen events occurring. We therefore anticipate production beginning early in the
new year.”
The recent suspension of commissioning activities of the base metals plant and the
consequent delay in project revenues are impacting on the Company’s working capital.
Accordingly, the Company is assessing potential funding requirements and options, and
corporate initiatives.
Lafayette Mining Limited
Media Release: 01/12/2005 Page No. 2
“While this delay in commissioning the base metals plant is disappointing, it is clearly the
prudent thing to do. It will serve the Rapu Rapu operations, shareholders and other partners,
including the local community, well over the longer term.”
“We confidently expect to begin base metals production early in the new year. We further
expect that once the plant ramps up, we can - with current strong commodity pricing levels –
realise the project’s significant value.”
For further information, visit: www.lafayettemining.com
Tim Hickman – Company Secretary
Kay Donehue – Executive Assistant
Lafayette Mining Limited: (03) 9654 6044
Gavan Collery – Media - +61 (0)419 372 210