Autralia’s Gippsland has reported that the metallurgical test-work carried out on the company's 40 million ton Abu Dabbab tantalite project in Egypt has proceeded well. Positive results were recorded especially with respect to feldspar, while the development of the overall process flow sheet is progressing as expected.
Abu Dabbab is a world-scale deposit containing some 22 million pounds of tantalite. Some 50 percent of Abu Dabbab's annual open pit mine production has the potential to be converted to saleable premium grade feldspar. Start-up is expected to occur during a period of market deficit when tantalite prices are predicted to be $60 to $80 per pound.
It is anticipated that the production of feldspar could greatly enhance the project economics. Gippsland has been undertaking the Abu Dabbab bankable feasibility study (BFS) over the past six months. The company has been using Australian engineering group Lycopodium which has completed similar tasks in relation to numerous Australian and overseas resource projects.
The project is the subject of a 50:50 joint venture agreement between Gippsland and the Egyptian Geological Survey & Mining Authority. Having determined the basic process route to be employed, the BFS has commenced the detailed financial evaluation of the overall Abu Dabbab project.
The BFS, which will determine the viability of the project, is expected to be completed by the end of the first quarter of 2003. In view of the recent developments with respect to feldspar, the BFS is being expanded to include this material, which has the potential to markedly improve the project economics.
Gippsland Directors lodged a non-renounceable entitlements issue Prospectus which is being offered to shareholders on the basis of one new ordinary fully paid share for every seven ordinary fully paid shares held as October 31 at an issue price of five cents per share. The Prospectus will be mailed to shareholders within three business days.
If fully subscribed, the Prospectus will issue 11.193 million fully paid ordinary Gippsland shares thus raising $559.7 million. The Directors have announced that they will offer any shortfall arising from the issue to the public at five cents per share.
Approximately 70 percent of the world's feldspar output is used in the production of ceramic wall and floor tiles plus porcelain products, as found in bathroom and toilet facilities. Ceramic tiles consist of approximately 70 percent feldspar. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
