Australia’s Gippsland Limited has advised that significant metallurgical results have been achieved with respect to the company's 40 million ton Abu Dabbab tantalum, tin and feldspar project located adjacent to the western shore of the Red Sea in Egypt.
Recent preliminary test work undertaken by independent metallurgical laboratory SGS Lakefield Research Limited of Toronto Canada, has achieved an 18.4 percent increase in tantalum pentoxide (Ta2O5) recovery rates. The recovery of tin has also been increased by a similar quantum.
Notwithstanding the significant Ta2O5 and tin recovery increases, the test work produced ceramic grade feldspar having a combined alkali metal content (Na2O & K2O) in excess of 13 percent and a reduced iron and titanium content.
On March 18, 2003, Gippsland released details of an interim Scoping Study undertaken by the engineering group Lycopodium Pty Ltd. The Scoping Study determined that the Abu Dabbab Project has a Net Present Value (NPV) at a discount rate of six percent of $127 million and an Internal Rate of Return (IRR) of 36 percent.
Gippsland’s directors stated that they recognize that the recent metallurgical achievements will have a positive effect on the overall economics of the Abu Dabbab Project. Based on the application of the increased Ta2O5 recovery alone, the Abu Dabbab Project's IRR increases to 42 percent while the NPV at six percent increases to $159.
Gippsland owns 50 percent of the Abu Dabbab Project. The directors are of the firm opinion that Abu Dabbab will enjoy the lowest cost of production globally. The Abu Dabbab Bankable Feasibility Study is progressing to schedule and, excepting any unforeseen delays, is expected to be complete during August 2003. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
