epc agreement for alumina refinery - The ASIA Miner

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July/August 2011 | Volume 8 | Issue 4 | Industry Technical Information | 矿业技术信息
ASIA AT THE CORE 亚洲为核心
Philippines in focus Nickel shines German technology goes global 聚焦菲律宾 镍矿闪耀光芒 德国技术走向全球

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FEATURES
German technology Germany’s mining equipment manufacturers are responding to a new surge in demand
for high technology as the key to higher production and greater efficiency ............................................62
Grinding Mills Xstrata Technology’s IsaMills are keeping up with new technology by taking on a number
of new fine and coarse grinding tasks in a wide variety of ore types ......................................................63
LEADING DEVELOPMENTS
Asian Intelligence Direct Nickel’s new processing technology is set to unlock the global treasure trove of
nickel laterite deposits ........................................................................................................................... 4
Legally Speaking Consolidation among stock exchanges is at an unprecedented level in a commodityfuelled
race to become the premium global minerals exchange. ...........................................................58
Exploration Augur Resources has intersected broad gold-copper zones at Wonogiri ..........................76
AROUND THE REGION
Philippines Mindoro Resources has encountered strong nickel assays at the Bolobolo target................8
China The acquisition of a dolomite quarry is another important step for China Magnesium.................20
Mongolia The country’s currency, the Tugrik, is heading north, just like its mining industry ....................26
Indonesia PT Inco is building a nickel processing facility in Central Sulawesi ........................................32
Laos SARCO has signed an EPC agreement with China’s NFC for an alumina refinery .........................36
Cambodia A new stock exchange is set to open in the kingdom during July.........................................38
Vietnam Olympus Pacific’s Phuoc Son processing plant is ramping up to full capacity .........................39
Malaysia Monument Mining is seeking to purchase the Mengapur Polymetallic Project ........................40
Papua New Guinea Resource Mining is using innovative techniques at Wowo Gap Nickel Project ......42
Central Asia Stans Energy has completed its acquisition of a heavy rare earths processing facility ......46
South Pacific Lion One Metals has recorded bonanza gold results at the Tuvatu project in Fiji ...................50
Australia Surveys have confirmed sulphide anomalies at Global Nickel’s Mt Cornell project........................52
Crazy Horse Resources geologists examine
core samples from the Taysan Copper-Gold
project in southern Luzon, the Philippines.
Drilling by the Canadian-based company ,
which has six rigs in operation, continues to
extend mineralization. An independent r esearch
study has found that T aysan is expected
to be a major driver of employment
and contribute about 1% to the nation’s GDP.
Photo courtesy Crazy Horse Resources.
DEPARTMENTS
Advertisers’ Index ........................................75
Calendar of Events ....................................57
From the Editor ............................................2
Product News ............................................68
Subscription Form ......................................75
Supplier News ............................................72
Acoje heap leach trial .........................................10 New energy technology for China........................22 Southern Oyu Tolgoi pre-strip...............................28
July/August 2011 | ASIA Miner | 1

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From The Editor
ASIA DRIVES GLOBAL MINING
ASIA, and primarily China, is driving the global mining industry. It’s not the
first time this has happened with Japan and South Kor ea driving in the
1980s but this time it is to an unprecedented scale. Overall, the mechanics
of mining are simple – supply and demand - with the Asian story so far
being all been about demand. It has driven demand to a level that 10 years
ago you would never have dreamed about, yet is still in the early stages.
To date supply has not r eally come in to the Asian equation and demand
is driving the world to look harder at how to balance it. Asia has a
very small portion of supply compar ed to demand, which needs to
By John Miller /Editor
change and will change.
PricewaterhouseCoopers global leader mining practice T im Goldsmith says “We talk about
Asian demand, but it has primarily been from China with other countries starting to build. It is in
China’s best interests to encourage new supplies to come to market and to do it well. As they
do more of this, they will get better but they will do it dif ferently, and different isn’t wrong or right.
What other countries need to learn is that their way isn’t the only way. When you see a successful
deal, it’s because both parties come together and there is give and take.”
The Chinese are learning quickly, he says, but ultimately what they’re trying to do is ensure new
supply is mined and that it goes to China. “In the west we shouldn’t be as concerned about them
as we seem to be and I don’t have an issue with control of the right asset at the right time because
we must always consider the supply and demand equation. Australia, for instance, has
to have in place the right laws to ensure that the Chinese, or any other foreign investors, are the
proper citizen at the level expected of a BHP Billiton or anyone else.
Tim Goldsmith says the demand is not just fr om China. “The whole story which started 30
years ago is about industrialization of three-quarters of the world’s population and includes India
and Indonesia. Governments have said they want this but it is a matter of whether they have the
wherewithal to make it happen. Behind China are India, Indonesia and a raft of other countries
with big populations, who all ultimately want the same thing. None of it will be done the same,
it will be done in a very Asian way and specific to each country but the people all want living standards
to improve, which means an increase in demand for commodities.
“Indonesia has an advantage in that it also has good ground and some mining history. It has
not necessarily been the most user-friendly mining code for the rest of the world over the last
10 years. Having said that, the mines operating under the former COW system have kept on
producing and making money but what stopped was exploration. The country is now walking
a path to get its mining act in or der and exploration is increasing as is excitement about
Indonesia as a resources supplier.
“What governments and stakeholders around the world need to do is assess the country’ s
starting position and determine a strategy outlining how they want their r esources exploited.
There’s no right or wrong answer but they need to come up with a conclusion and clearly articulate
it so everyone understands and then add the building blocks to make it happen. In general,
Indonesia has done the early stages well but is still negotiating the path and along the way
will have issues to work through.
“Where each country sits on the development curve varies and the Philippines is far better than
some countries but is also a work in progress. Some parts of the Philippines are easier than others,
there are success stories and some that have been problematic but there is good geology,
which has to make the effort worthwhile.”
John Miller, The ASIA Miner Editor
2 | ASIA Miner | July/ August 2011
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Asian Intelligence
DIRECT NICKEL SOLVES NICKEL LATERITE PUZZLE
NEW processing technology from Australian
company Direct Nickel is set to unlock the
global treasure trove of nickel laterite deposits.
The r evolutionary process uses nitric
acid and is attracting plenty of attention from
the mining industry. Direct Nickel’s executive
chairman Julian Malnic says the process has
strong potential to transform the nickel industry,
with South East Asia and Australia
among the main beneficiaries.
“South East Asia has a wealth of nickel laterite
deposits – through the Philippines, Indonesia,
Papua New Guinea,
the Solomon Islands and
New Caledonia. The gr eat
genie on the back of laterites,
however,” he says, “is
that on the most part
they’ve been failur es.
People have a per ception
that laterites are intrinsically
difficult metallurgically but
with our new process, they
are absolutely not.
“We have a revolutionary
process and have positioned
ourselves as a nickel
company, so we won’ t sit
back and wait for the technology
to be exploited by
others. We are rolling it out
ourselves and we’ll own a
funding interest in every
project where the technology
is used.”
Julian Malnic says it is the first process to
be able to tr eat the whole pr ofile of every
nickel laterite deposit. “The pr ocess works
across the full limonite and saprolite chemistry
transition in laterites using a single
flowsheet. We have tested 35 deposits so
far and get extraordinarily good recoveries
from all of them.
“We work at mildly elevated temperatur es
but there’s no applied pressure and no boiling.
We recycle the reagent through our patented
nitric recycle process. We have been
working on this for about 4-5 years and the
precursor technology originates fr om the
chemical processing sector in the US, which
is why it has never been seen before.”
Direct Nickel sees a significant change in
the future of laterites in Indonesia, for in-
4 | ASIA Miner | July/August 2011
stance, because after 2014 ther e are going
to be no more exports of unprocessed ore
from the country. “This decision has resulted
in intense interest for our technology,” Julian
Malnic says. “The Philippines is trying to
come up with ways to create the same constraint,
which is certain to lead to further interest
in the Direct Nickel process.
“Australia also has a lot of laterites and we
have a test plant under construction in Perth,
which means the company’s major focuses
are within the couple of time zones encom-
Direct Nickel project manager Graham Brock (left) with the technical team in Charlotte, NC where the recycle
section of the flowsheet was demonstrated in August 2010 using commercially available components.
passing Australia and Asia. However, this has
potential to spread much further and we are
negotiating with a Brazilian property while two
African operations have asked us to test their
ore. It’s a global solution but I think ther e is
so much nickel in this gr oup of time zones
that this is where our future lies.
“We are very enthusiastic about Indonesia
as a result of our ongoing discussions but are
open to talk to anyone with laterite deposits.
Sulawesi presents many opportunities and
has three sources of energy – hydr ocarbon,
geothermal and hydro.
“The whole laterite sector is relatively untouched,
there’s 120 years of nickel supply sitting
there, drilled out. Nickel is quite a pr ecious
base metal and I can’ t think of another metal
that is so over-discovered but yet still largely
unexploited because there has not been an ac-
cessible metallurgical key to open the value.
“We’ve had the fiascos with pressure acid
leach using sulphuric acid and the battlefield
is strewn with the carcases of dead projects.
This has created a lot of scepticism around
the laterite business but we’r e used to
dealing with skeptics and like to take them
through the pr ocess we’ve developed to
transform the technical teams we work with
into believers.”
The company has investment fr om Canada’s
largest international miner Teck Resources
and Australia’ s
governmental scientific
body, the CSIRO, both of
which are also technical
partners. Regency Mines
is the company’s Papua
New Guinea joint venture
partner with the Mambare
project where drilling is
under way.
As well as the test work
at the test plant which is
expected to be completed
in the first quarter of 2012
and discussing the technology
with inter ested
parties, Direct Nickel is
proceeding with the r everse
takeover of an ASX-
listed shell company. “Our
agreed value is $82 million
and the shell has a value
of $1 million so we ar e going to merge with
and then re-list that shell,” Julian Malnic adds.
Myanmar nickel project ready
TRIAL operations at China Nonferr ous Metal
Mining Company’s Dagon Hill nickel mining and
smelting project in Myanmar are due to start in
July. When at full capacity the project is expected
to operate at an annual pr oduction rate of
850,000 tonnes of ferronickel and 22,000 tonnes
of pure nickel content for 20 years.
The trial follows completion of the number
one ore smelting furnace at the project. The
furnace is 32 metres long, 9 metres wide and
6.3 metres high.
China Nonferrous started construction
work on the nickel pr oject in 2009 and has
invested US$820 million. Last year it signed
a cooperative agreement with Taiyuan Iron &

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Asian Intelligence
Steel (Group) Co (TISCO) to jointly develop
the project. Previously, the investment and
operation of the Dagon project was solely in
charge of China Nickel Industry Co, a subsidiary
of China Nonferrous.
It became the first concr ete cooperative
project following the signing of a strategic
agreement by the two companies in March
2010. China Nonferrous general manager
Luo Tao said that the cooperation would
serve as an example of friendly cooperation
between central enterprises and local enterprises.
The agreement grants TISCO access
to a stable, r eliable and low-cost
strategic supply chain of the nickel r esource,
thereby enhancing its control over
resources and increasing the competitiveness
of stainless steel.
Nickel, the most important raw material for
stainless steel production, accounts for more
than 70% of the total pr oduction costs for
stainless steel. TISCO, the par ent company
of Taigang Stainless Steel, is the largest stainless
steel producer in China.
The Dagon Nickel Project includes excavating
and smelting ores, and is the biggest cooperation
between China and Myanmar in
the mining field. The pr oject is estimated to
contain more than 30 million tonnes of high
grade nickel ore for at least 700,000 contained
tonnes of nickel.
缅甸镍矿项目准备就绪
中国有色矿业集团公司在缅甸投资建设的达
贡山镍矿开采、冶炼项目预计于7月份投入试
运行。该项目服务年限为20年,其产能可达
到年产85万吨镍铁,其中含纯镍2.2万吨。
试运行在达贡山镍矿项目的一号矿石冶炼
炉完工之后启动。该冶炼炉长32米,宽9
米,高6.3米达贡山镍矿项目的建设工作始
于2009年,中国有色矿业集团公司共投资
8.2亿美元。去年该公司与太原钢铁(集
团)有限公司(TISCO)签署了一份合作协
议,共同开发这个项目。在此之前,达贡山
项目的投资和运营由中国有色的子公司中国
镍业公司单独负责。
2010年3月份中国有色矿业集团公司和太
原钢铁(集团)有限公司签署了战略合作协
议之后,该项目成为双方第一个具体的合作
项目。中国有色矿业集团公司总经理罗涛表
示,这两家企业的合作可以作为央企和地方
企业友好合作的典范。通过合作协议,太原
钢铁获得了稳定、可靠、廉价的镍矿资源战
略供应链,从而使其对于资源的控制得到加
强,并且提高了其不锈钢产品的竞争力。
镍是不锈钢产品中最重要的原料,它的价格
占到了不锈钢产品总成本的70%。作为太钢不
6 | ASIA Miner | July/August 2011
锈钢股份有限公司的母公司,太原钢铁(集
团)有限公司是中国最大的不锈钢生产商。
达贡山镍矿项目包括矿石的开采和冶炼,
它也是中国和缅甸在采矿领域最大的合作项
目。据估计,该项目拥有3000万吨高品位
镍矿石,含镍至少达到70万吨。
已在香港上市的中国有色今年的目标为盈
利20亿元人民币以上,销售额1000亿元,
有色金属产品销量超过100万吨。该公司目
前控制的有色金属资源超过2000万吨,铝
土矿3亿吨。该公司共拥有14座矿,5个冶
炼厂,一个经济合作开发区,并有四家企业
在海外上市。
Drill grant for nickel project
VENTNOR Resources has been awarded a
drilling grant by the Western Australian State
Government to expand its drilling program at
the Warrawanda Nickel Pr oject in. The
Aus$100,000 grant is part of the Co-Funding
Industry Drilling Program under the State’s
Exploration Initiative Scheme (EIS).
The Warrawanda Nickel Project in Western
Australia is about 40km south of Newman
and is accessed from the sealed Great Northern
Highway by unsealed formed tracks.
Anaconda Nickel explored Warrawanda for
nickel-cobalt laterite deposits in 1996 and
1997. Work included air-photo interpretation,
airborne magnetic surveys, geological mapping,
gridding, RAB, AC and RC drilling and
metallurgical test work.
The work included 86 vertical RAB holes
totalling 1488 metres, with an average depth
of 17.3 metres as well as 46 vertical RC holes
totalling 930 metres with an average depth of
17.8 metres. Holes were drilled at 50 to 100
metre intervals on 500 and 1000 metre traverses
in selected areas. Further drilling was
undertaken along strike from the ultramafic
within the surrounding area.
In total, about 17km of the strike length of the
ultramafic has been tested. W arwick Resources,
now Atlas Iron, pegged Warrawanda
and took chip samples at the surface, however
their focus switched to iron ore elsewhere and
no further work was undertaken.
Warrawanda is in the Sylvania Inlier , an
Archean granite-greenstone terrane in the
Pilbara region of Western Australia. Compared
to the larger and historically mor e
productive Yilgarn and Pilbara Cratons, the
Sylvania Inlier has been relatively under researched
and under explor ed. The major
known economic or e occurrence is the
Coobina chromite deposit, wher e about
240,000 tonnes of chr ome ore are produced
annually from open pit mining.
The Warrawanda project of Ventnor Resources is in the south of Western Australia’s Pilbara region.

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Philippines
STRONG NICKEL ASSAYS AT BOLOBOLO TARGET
Sampling nickel laterite from Mindoro Resources’ Agata Nickel-Cobalt Project.
THE final drillholes at Mindor o Resources’
Bolobolo nickel target in the Surigao nickel
district of northeast Mindanao have returned
strong assays of potential economic interest.
The company is now utilizing the data obtained
from this drill program to estimate indicated
resources.
A total of 497 holes for 5200 metr es have
been completed from the proposed 7000-
10,000 metre program systematically testing
regional nickel targets with the objective of
converting a significant proportion of the Surigao
regional exploration targets to r esources.
Drilling has been completed on a 50 x
50 metre grid pattern at Bolobolo and Mindoro
says this is suf ficient drilling density to
enable estimation of indicated resources.
Best results from the final 52 holes and 433
samples are: 13.75 metres from surface @
1.36% nickel, including 12 metres from 1.75
metres in sapr olite @ 1.42%; 12.1 metr es
from surface @ 1.12%; 9.4 metres from surface
@ 1.18%, including 5.8 metres from 3.6
metres in saprolite @ 1.37%; and 9.95 metres
from 1.3 metre @ 1.2%, including 4.7 metres
from 11.25 metres in saprolite @ 1.46%.
The company is carrying out a final topographic
survey at Bolobolo before producing
a resource estimate while drilling has now
8 | ASIA Miner | July/August 2011
moved to the Agata South ar ea. A previous
arrangement with a Philippines company ,
Delta Earthmoving, has been r e-negotiated,
allowing Mindoro to resume control of the
project in exchange for a gross 1% royalty on
future production.
Mindoro has NI 43-101 mineral r esource
estimates on its Agata Nickel-Cobalt Project
in Surigao, that include a measured and indicated
resource of 32.6 million tonnes @
1.04% nickel for 340,000 tonnes contained
nickel. It recently released an integrated preliminary
economic assessment (PEA) on
Agata and has started a pre-feasibility study
into an integrated on site nickel pr ocessing
project based on the PEA. It is also assessing
the potential to develop a thermally processed
(upgraded) nickel ore operation to
generate early cashflow.
The company’s president and CEO Jon
Dugdale told delegates at the China Nickel
Conference that Mindoro sees very str ong
growth in Chinese and other (eg Indian) stainless
steel production. Up to 80% of nickel
consumption is in stainless steel production.
“Primary nickel supply has not come on
stream as forecast and the ‘gap’ in supply is
being met, just, by nickel pig iron production
in China. Nickel pig iron is produced from di-
rect shipping or e (DSO) laterite sour ced
mainly from the Philippines, Indonesia and
New Caledonia. However, there is a tr end
away from DSO in these countries in favour
of value added processing.
“Mindoro is very well placed to take advantage
of the continued strong demand for nikkel
products, with a focus on two stages of
value-added processing, a building nickel resource
and a high-quality deposit in terms of
size potential, location and outstanding metallurgical
characteristics.”
Second nickel plant on schedule
CONSTRUCTION by Nickel Asia Corp of the
Philippines’ second hydrometallurgical nickel
processing plant, located adjacent to the
company’s Taganito mining operations in Surigao
del Norte, is pr oceeding on schedule
with plant commissioning expected in mid-
2013. Nickel Asia has a 22.5% stake in the
new project, while Japan’s Sumitomo Metal
Mining has a 55% stake. The new plant will
use high pressure acid leach technology to
process limonite or low grade nickel ore.
Taganito Mining Corp, a subsidiary of Nickel
Asia, will supply all of the required nickel ore
to the plant over an estimated 30 year project
life. The output, a mixed nickel cobalt sulphide,
will be bought by Sumitomo for final
processing at its refinery in Japan.
The new plant is considered particularly beneficial
to the country because of the value
added created, the jobs and the for eign exchange
earnings. During construction, the
project will employ 4000 workers. When operations
start in 2013, ther e will be 1000 full
time employees.
The country’s existing nickel pr ocessing
plant is under Coral Bay Nickel Corporation,
a joint venture between Sumitomo and Rio
Tuba Nickel Mining Corporation, another Nikkel
Asia subsidiary.
Nickel Asia has a majority stake in six mining
operations throughout the Philippines, including
Taganito, Cagdianao, South Dinagat, Taganaan
and Rio Tuba, and ships its output to
Japan and China. The company has a 10%
equity interest in the Coral Bay HPAL facility at
Rio Tuba. The oldest of the mine sites, Rio
Tuba has been operating for mor e than 30
years. The sixth mining project on Manicani Island
is under care and maintenance.

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Philippines
Nickel Asia expects that a very healthy start to 2011 in terms of sales
and net income will be sustained for the rest of the year owing to healthy
nickel prices and better production. President and chief executive
officer Gerard Brimo says all indications point to higher nickel
prices and a higher sales volume as well as demand for nickel ore remaining
strong. “While the ferronickel plant of our main buyer of saprolite
ore Pacific Metals Co (Pamco) was afected by the earthquake
and tsunami in Japan, the damage is not substantial and the plant is
expected to restart operations in the thir d quarter. In the meantime,
we agreed with Pamco to divert shipments of ore to other buyers, so
our sales volumes for the year will not be afected by this tragic event.”
The nickel facilities in the Rio Tuba area.
Irrigation of heap one at European Nickel’s heap leach trial site at the Acoje project.
10 | ASIA Miner | July/August 2011
During the first quarter of 2011 Nickel Asia shipped ore worth PHP
1.97 billion, an increase of PHP 996 million on the corresponding period
of 2010. The Rio Tuba mine shipped 396,000 wet metric tonnes
(wmt) of saprolite ore and 826,000 wmt of limonite ore, while the Taganito
mine shipped 203,000 wmt of saprolite ore. The other two operating
mines, Hinatuan and Cagdianao in north-easter n Mindanao,
started shipments of saprolite and limonite ore in April.
Acoje trial continues
THE heap leach trial at Eur opean Nickel’s Acoje project on Luzon
Island is continuing with the two heaps being operated in closed
circuit mode in order to increase metal concentrations. By August
the high concentration of pr egnant leach solution (PLS) fr om the
heaps will be fed to the hydrometallurgical recovery plant which is
being configured on site.
This plant will test the company’ s enhanced metals recovery process
flow-sheet and will produce separate nickel hydroxide and cobalt
hydroxide products. Once the leach cycle is complete the stack will
be rinsed, neutralized and rehabilitated.
Irrigation of heap 1 began in April. This heap consists of about 2000
tonnes of agglomerated nickel laterite ore stacked on a 33 metre by
18 metre pad to a height of 4 metres. Irrigation is with diluted sulphuric
acid using a network of drippers and wobblers in combination in order
to test the best delivery method.
PLS production occurred very rapidly with breakthrough occurring
within 12 hours of the start of irrigation. This shows that the stacking
and agglomeration of heap 1 was successful and that acid solution is
able to percolate through the heap freely. The PLS, which consists of
dissolved metals in acid, then flowed freely to the PLS pond.
During May/June the company agglomerated and stacked heap 2,
which sits adjacent to heap 1 on the heap leach pad, in order to test
the combining of the primary and secondary phases of heap leaching.
The trial pads are also designed to test rain mitigation techniques
and have a combination of HDPE raincoats on the sides of the heap,
which also improve slope stability, and a layer of r ocky saprolite ore
on top to protect the heap surface.
The trial results at the heap leach trial site will be used in the bankable
feasibility study (BFS) which is under way at Acoje. The recruitment
of key personnel and consultants for fast-tracking of the BFS
is on track with selection of the owner’s team study manager and
project engineer completed.

News1_Layout 1 6/17/11 4:47 PM Page 11

News1_Layout 1 6/17/11 4:47 PM Page 12
Philippines
Meanwhile, Philippine company DMCI continues
to mine and stockpile dir ect shipping
ore in preparation for shipments fr om their
port in Santa Cruz. DMCI is undertaking all
the financial risk, operations and marketing
associated with the mining and sale of the
nickel laterite ore and pays European Nickel
a royalty fee on each shipment.
Tampakan partners confident
PARTNERS involved in the massive Tampakan
Copper-Gold Project are determined to maintain
the schedule of beginning mine development
in 2012 and commer cial production by
2016 despite delays caused by a r egional regulation
banning open-pit mining. Local operator
Sagittarius Mines and its overseas
partners Xstrata Copper and Indophil Resources
are confident that Pr esident Benigno
Aquino III will take charge of resolving the issue.
The $5.9-billion project, said to cover the
largest undeveloped copper-gold deposit in
South East Asia, has been described as having
the potential to be the largest mine in the
Philippines and the fifth-largest copper mine
in the world by 2016. It is pr ojected to add
1% to Philippines’ gr oss domestic product
annually after 2016.
Last year, the South Cotabato regional government
passed a new environmental code
banning open-pit mining, a move that has
caused consternation to the Tampakan consortium
as well as other mining and quarry
operators in this region of Mindanao.
While confident of positive national government
intervention, Sagittarius has also
recently started forwarding to local officials
an environment impact study (EIS) which is
likely to be a key to overtur ning the mining
ban covering the site. Feedback fr om the
consultations will be used to finalize the study’s
draft before it is ultimately submitted to
the national government.
The study identifies the potential envir onmental
and social impacts of the pr oposed
mining operation as well as the strategies of
Sagittarius to mitigate such. It details the potential
impact on water r esources such as
contamination due to discharge from the project
site, generation of tailings and waste rock
and clearing of rainforests. The company proposes
mitigation measures such as putting in
place a water management system which involves
treatment of all mine water prior to release
from the site as well as having storage
for waste rock and tailings, and a plan for
clearing procedures.
12 | ASIA Miner | July/August 2011
Xstrata Copper’s Tampakan general manager
Andrew Pickford told those attending a
Philippines-Australia Business Council meeting
in Sydney in mid-June that he expects to
Aquino administration to resolve the issue before
the consortium makes a decision on the
project next year.
He said EIS consultations would take 3-6
months, after which Sagittarius would lodge an
application to get an environmental compliance
certificate. It then hopes to get a declaration of
mining feasibility from the national government.
Philippines trade secr etary Gregory L Domingo
told the Sydney forum that the President
had vowed to directly tackle the dispute. He
also said that the gover nment is on track to
start bidding out infrastructure contracts in the
country this month.
Indophil, which holds a 37.5% stake in the
mine, will r etain its stake after San Miguel
Corp decided to let go of an exclusive period
to launch a takeover bid. The company’s vice
president Gavan Collery says it has raised
funds to cover its involvement up to 2012.
“We’re hell-bent on maintaining direct and active
interest in the project through the commitment
stage and on to development.”
Didipio construction starts
CONSTRUCTION has started at OceanaGold’s
Didipio copper/gold project with commissioning
of the process plant scheduled to start in
the fourth quarter of 2012. The project has estimated
gold reserves of 1.68 million ounces and
copper reserves of 229 million tonnes.
An aerial view of the proposed layout at OceanaGold’s Didipio project.
The processing plant will start operation at an
annual capacity of 2.5 million tonnes and will
ramp up to 3.5 million tonnes by the end of the
second year. Didipio will pr oduce an annual
average of 100,000 ounces of gold and 14,000
tonnes of copper. During the first six years of a
16-year life of mine, annual gold production will
remain at around 100,000 ounces, but copper
production will increase to about 18,000 tonnes
over the same period.
Ausenco has the contract to complete the engineering
design and procurement with members
of OceanaGold’s construction and project
management team working alongside the Ausenco
team in Australia to oversee the project.
Didipio is estimated to cost $185 million to
develop, with ar ound $12 million alr eady
spent to date. The project will be transformational
for ASX and TSX listed OceanaGold,
according to managing dir ector and CEO
Mick Wilkes, and would give the company a
platform to expand further into the Philippines
and throughout the Asia Pacific.
“During the past six months, we have been
working hard to unlock significant value
through adjustments to the design of the
mine, process plant and infrastructure, which
has seen annual gold production increase by
45% and annual copper production increase
by 69% over the life of the mine.”
Mining will be undertaken in six stages over
a 14-year period, taking the open pit down
270 metres to the valley floor. The maximum
planned annual mining rate is estimated at
around 24-million tonnes.

News1_Layout 1 6/17/11 4:47 PM Page 13

News1_Layout 1 6/17/11 4:47 PM Page 14
Philippines
The access to the underground area through
a decline from the side of the open pit is expected
to start in 2016, with underground production
planned for 2020 and ramping up to 1.2
million tonnes a year by 2023. The under -
ground mining is expected to take place for at
least six years of the mine’s life and will run concurrently
with the open pit operation.
OceanaGold also has the Macraes goldfield
in Otago, in the south of New Zealand’s South
Island, which is made up of the Macraes
open pit and Frasers undergr ound mines. It
also operates the Reefton open-pit mine on
the west coast of the South Island and cur -
rently produced around 270,000 ounces annually
from these two operations.
Taysan mineralization extended
DRILLING by Crazy Horse Resour ces continues
to extend mineralization at the T aysan
Copper-Gold Project in southern Luzon. The
deposit remains open and feasibility drilling continues
with six diamond drill rigs in operation.
Drilling at Crazy Horse Resources’ Taysan Copper-Gold Project in southern Luzon.
One hole returned and intersection of 426
metres from 40 metres @ 0.23% copper, 0.10
grams/tonne gold and 0.52 grams/tonne silver,
including 52 metres from 254 metres @ 0.35%
copper, 0.18 grams/tonne gold and 0.90
grams/tonne silver. The same hole also extends
the resource to depth with 52 metres from 598
metres @ 0.14% copper , 0.05 grams/tonne
gold and 0.66 grams/tonne silver . This is 80
metres below the previously known base of ore.
14 | ASIA Miner | July/August 2011
Another hole also continued to confirm the
existence of deeper ore zones with an intersection
of 10 metr es from 664 metr es @
0.28% copper, 0.06 grams/tonne gold, and
0.52 grams/tonne silver while another hole
continued to confirm the existence of significant
silver grades associated with the copper-gold
resource.
Crazy Horse’s president and CEO Johan
Raadsma says, “The ongoing positive r esults
further substantiate the Taysan deposit as a reliable,
predictable and growing deposit. Persistent
silver grades ar e fantastic and we will
further these toward a compliant resource.”
Taysan contains a copper -gold porphyry
deposit with an inferred resource, and is comprised
of two mining exploration permits and
three mining exploration permit applications
over five contiguous claim blocks covering a
total area of 11,254 hectares. Taysan is in a
well-developed mining province and readily
accessible by road, being 20km east of the
provincial capital and deep water commercial
port of Batangas City. The company is conducting
a confirmatory scoping study, which
remains on track and on schedule.
A recent independent research study analysed
the expected positive economic impact
of construction and initial pr oduction from
Taysan on both a regional and national level.
The key findings demonstrate that Taysan is
expected to be a major driver of employment
and contribute about 1% to national GDP.
Johan Raadsma says, “W e have worked
very hard on our social licence to operate in
the Province of Batangas and ar e excited
about the report’s findings that r esponsible
mining development will be a viable tool for
poverty alleviation, education, positive economic
impact while providing a return to shareholders
and gover nment alike. W e look
forward to working closely with the Local Government
Units in monitoring and impr oving
on the key indicators r elated to the socioeconomic
well being of the community.”
The report followed receipt of a formal r esolution
of support to develop the pr oject
from the Provincial Board of Batangas and a
formal resolution of appreciation from the Taysan
Municipal Council.
The company has also executed a binding
asset sale and purchase agreement with a private
Philippines company, to acquire its 15.94
hectare port facility in Batangas. The port is on
the southern end of Batangas Bay and adjoins
the Shell Malampayan onshore gas plant.
Strong Tambis potential
A DETAILED mapping program by Medusa Mining’s
Philippines operating company Philsaga
Mining has highlighted the excellent r egional
potential of the Tambis tenement, which includes
the Bananghilig gold deposit. Medusa believes
there is excellent potential for additional
discoveries of breccia-hosted, epithermal veins
and quartz stockwork gold mineralization within
a large intrusive-breccia complex mapped
over an area measuring about 7km by 3km
along a well defined north-easterly tr ending
structural and alteration corridor.
New outcrops of porphyry and related styles
of copper mineralization have also been located
at the Sawahon Creek prospect, at the lower
Bananghilig River prospect, and southwest of
the Bananghilig deposit in the extensive skar n
area which is associated with the fertile copper-bearing
Supon diorite and the adjacent
Kamarangan porphyry copper -molybdenum
prospect. Drilling is continuing with six drilling
rigs at Bananghilig. Medusa’s managing director
Geoff Davis says, “This ongoing mapping
has significantly enhanced the regional potential
of the Tambis District. We see strong similarities
with the Wafi Golpu Project in Papua New Guinea
with respect to the regional setting, rock
types, mineralization styles and potential.
“In addition there are many similarities to the
richly mineralized Baguio District north of Manila
which has produced about 28 million ounces
of gold and 2.8 million tonnes of copper.”

News1_Layout 1 6/17/11 4:47 PM Page 15

News1_Layout 1 6/17/11 4:47 PM Page 16
Philippines
A schematic cross section of Medusa Mining’s Tambis tenement.
The Tambis Project is operated under a mining
agreement with Philex Gold Philippines
over a granted mineral pr oduction sharing
agreement (MPSA) which covers 6262 hectares.
In addition the company is ear ning a
70% interest in a joint ventur e through MRL
Gold Phils with Apical Mining Corporation
which covers an adjacent MPSA application
with an area of 2084 hectares.
The Tambis district is in the regionally extensive
Eastern Mindanao volcano-plutonic arc,
an area with known pr ecious metals and
base-metals mines, deposits and occurr ences.
This metallogenic r egion is one of the
most significant epithermal and porphyry
copper districts in the Philippines, including
gold and copper-gold deposits at Diwalwal,
Co-O, Kingking, Amacan, Masara, Boyongan,
Bayugo, Siana and Placer.
Meanwhile, at Medusa’s operating Co-O
Gold Project permitting is progressing for an
expansion in annual production capacity to
200,000 ounces. The construction time for
the new plant after the necessary r egulatory
approvals are granted is estimated at about
21 months, and the full benefits of the expansion
are expected to be r ealized from mid-
2013. Medusa has contracted Ar ccon (WA)
for the process engineering, plant design and
construction supervision.
Dilong EPA cancelled
PHILIPPINE Metals continues to engage
with the Philippine gover nment Mines and
Geosciences Bureau (MGB) regarding cancellation
of its exploration permit application
(EPA) for the Dilong copper-gold project. The
company believes that the EPA has not been
16 | ASIA Miner | July/August 2011
cancelled legally and is confident it will be
reinstated in due course.
Since the date of local elections in Tubo, Abra,
last October, the company has accelerated its
constructive efforts to work with the new local
government and community leaders to gain
their support for EPA at Dilong. Negotiations
with the rightful indigenous peoples to acquir e
free and prior informed consent (FPIC) have
been initiated and ar e progressing positively,
and consultation with the Local Gover nment
Unit’s Sanggunian has been ongoing, both of
which are key aspects of the EPA process.
However, as a result of the MGB’s ‘use it
or lose it policy’, which it has taken steps to
A massive sulphide outcrop at one of Philippine Metals’ properties.
enforce, the company earlier this year received
formal notification fr om the MGB that
the Dilong EPA has been cancelled. The
company believes that it has not been cancelled
legally and is in discussions with the
MGB to resolve this matter.
It has filed with the MGB central of fice the
appropriate objection notice, supported by
documentation already filed with the MGB regional
office which demonstrates that the
company has been actively pr ogressing its
permit application and complying with all r equirements
set by the gover nment. In addition,
the company notes that in its case, the
MGB appears not to have observed its ‘threeletter-policy’
of notification in exacting compliance
in respect of its Dilong EPA.
The company stresses that it is supportive
of the MGB’s efforts to drive r eform in the
Philippines mining industry and will continue
to engage with and support the gover nment
in its efforts to implement its reform program.
Meanwhile, Craig Lindsay has agr eed to
join the company’s Board of Directors replacing
Lou Clinton who has resigned his position
as a director to pursue other inter ests.
Craig Lindsay has more than 20 years’ experience
in corporate finance, investment
banking and business development in North
America and Asia and is currently president
and CEO of Otis Gold Corp and managing
director of Arbutus Gr ove Capital Corp, a
private company offering corporate finance
and merchant banking services.

News1_Layout 1 6/17/11 4:47 PM Page 17
Masbate 10 tonnes milestone
AFTER achieving the milestone of pouring 10
tonnes of gold from its Masbate Gold Project,
CGA Mining is continuing to forge ahead by
upgrading the process plant and undertaking
an aggressive US$10 million exploration program.
When complete the upgrading will enable
the plant to annually process 6.5 million
tonnes while the exploration program is focused
on the conversion of additional resources
to reserves and delineating new reserve and
resource ounces.
Masbate is the largest gold pr oject in the
Philippines and was successfully developed
with first gold poured in May 2009. The project
has a total indicated r esource base of
153.41 million tonnes @ 0.92 grams/tonne
for 4.55 million ounces, total inferr ed resource
base of 127.15 million tonnes @ 0.79
grams/tonne for 3.22 million ounces and a
A view over the processing facilities at CGA Mining’s Masbate project on Masbate Island.
probable reserve of 92.2 million tonnes @
1.0 grams/tonne for 3.03 million ounces.
In its first year of operation the project produced
more than 150,000 ounces and is on track
to produce at an annual rate of mor e than
200,000 ounces. The existing 4 million tonne
plant was constructed by Leighton Contractors
Asia without one lost time injury . The mining
contract for Masbate was awarded to Leighton,
the largest mining contractor in the world.
Recent drilling has returned high grade intercepts
at Libra East, which is immediately
adjacent to the Main Vein Pit. An extension
of highly mineralized quartz veining has also
been identified immediately to the north of
the planned Colorado pit.
Highlights of the drilling include 6 metres @
1.34 grams/tonne gold from 149 metres, 9
metres @ 1.55 grams/tonne from 169 metres,
14 metres @ 2.25 grams/tonne fr om 131
metres, 30 metres @ 1.57 grams/tonne from
92 metres, 7 metr es @ 7.11 grams/tonne
from 4 metr es, 32 metr es @ 1.98 grams/
tonne from 74 metres and 17 metres @ 1.90
grams/tonne from 167 metres.
The proposed Libra East pit forms the northwestern
end of the Main V ein Pit. The current
design is limited by drill data and not mineralization
extents. Results point to the potential for
adding additional resources at Libra East.
The Grandview pit forms the northern part of
the main Colorado pit. Recent exploration drilling
300 metres to the NNW of Grandview has
intersected a mineralized quartz vein-stockwork
system which appears to be an extension
of the mineralization curr ently being
mined. Further drilling, including scissor holes,
is planned for this area.
A 41-hole program of resource infill drilling
is also being conducted in the planned Main
Vein Pit targeting the inferr ed section of 4
major veins within the Binstar zone as well as
the Main Vein zone itself.
CGA has recently spun out its African assets
in Ratel Group and also holds a 23% interest in
St Augustine Gold and Copper, which is earning
a 60% interest in the world class King-king Copper-Gold
Porphyry Project in the Philippines.
Major drilling at T’Boli
A MAJOR undergr ound drilling pr ogram is
under way at Cadan Resour ces’ T’Boli Gold-
Philippines
Silver Project in a bid to expand the r esource
envelope and to upgrade existing resource categories.
The first hole of this pr ogram has intersected
a number of mineralized zones and
one of these zones displayed visible free gold.
This program is advancing at the same time
as underground development of T’Boli. The
south crosscut from the advancing east decline
has partially penetrated the 40 metr e-wide
South Vein alteration system with an initial 8.6
metre section assaying 8.2 grams/tonne gold.
Other development drive sampling returns include
1.25 metres @ 134.0 grams/tonne gold,
2.1 metres @ 6.1 grams/tonne, 1.7 metr es @
28.1 grams/tonne, 1.6 metr es @ 12.7
grams/tonne, 1.0 metres @ 21.5 grams/tonne
and 1.85 metres @ 14.5 grams/tonne.
Old records show that further individual veins
will be intersected as the cr osscut completely
exposes the 40 metre width of the South Vein
alteration system. A poorly documented but
prospective alteration system is known to exist
some 70 metres further south. This system will
be tested with the underground drilling.
Resource definition drilling at the T agpura
porphyry skarn on Cadan’s Comval project
continues to produce strong assays, including
77 metres from 2 metres @ 1.26% copper
and 0.42 grams/tonne gold.
This drilling is within the zone which has a
potential tonnage of 10 to 15 million tonnes.
The completion of this drilling program, together
with previous drilling and open pit bench
sampling, provide a database of suf ficient
density to allow the upgrading of the potential
tonnage to a measured resource.
Other recent results include 21 metres from 4
metres @ 1.59% copper and 0.4 grams/tonne
gold, 106 metres from surface @ 0.65% copper,
98 metres from 2 metres @ 0.32% copper,
69 metres from 2 metres @ 0.30% copper, and
34 metres from 4 metres @ 0.41% copper.
Drilling completed to date, combined with
open pit bench sampling has defined a massive
magnetite - chalcopyrite/chalcocite skarn
strike length of 350 metres. Surface mapping
of magnetite has extended the strike length
some 300 metres to the south while r ecent
drill site preparation has uncovered mineralization
100 metres to the north.
A number of other skar ns have been mapped
and new discoveries ar e ongoing. The
total skarn potential associated with the large
tonnage porphyry copper deposits is yet to be
determined. Multiples of announced skarn potential
is a realistic expectation. Drilling of the
large tonnage porphyry potential is ongoing.
July/August 2011 | ASIA Miner | 17

News 2_Layout 1 6/17/11 4:51 PM Page 18
China
NEW ENERGY TECHNOLOGY FOR CHINA
The Kalina Cycle plant of Wasabi Energy in operation at Sumitomo Metals’ Kashima Steel Works in Japan.
WASABI Energy’s exclusive Chinese licensee
has begun construction of a state-of-the-art
Kalina Cycle Laboratory and Testing Facility in
Shanghai. The facility has been designed to assist
in testing major components as well as the
assembled power generation system for the
Kalina Cycle system.
The facility, scheduled to begin operations later
this year, is being built by Shanghai Shenghe
New Energy Resources Science & Technology
Co (SSNE) and is expected to play a pivotal role
in the implementation of Kalina Cycle technology
in China. This technology enables the generation
of power fr om geothermal and waste heat
sources. The dedicated facility has been designed
to assist in the testing of major components
including 1:1 scale heat exchangers and
turbine assembly as well as a full factory testing
capability for the Kalina Cycle system with rated
power outputs of up to 5200 kW. It will also incorporate
a Kalina Cycle power plant simulator
to assist in identifying process refinements and
providing operator training.
SSNE is a developer of waste heat, geother -
mal and solar thermal power plants, specifically
focused on delivering thermal power plant ef ficiency
improvements. SSNE is experienced in a
diverse range of energy intensive industries in
China and has assembled a team capable of
delivering Kalina Cycle projects.
18 | ASIA Miner | July/August 2011
The new facility will not only assist SSNE in
delivering Kalina Cycle power plants to the
market in China but will also assist Wasabi in
the manufacturing, assembly and factory
testing of Kalina Cycle systems for its global
business. Following its acquisition of Global
Geothermal Ltd, Australian-based W asabi
has continued to r oll out the technology
throughout the world, including Pakistan,
Japan, Taiwan and Iceland. Wasabi’s executive
chairman John Byr ne says, “Recent
global events including the earthquake in
Japan demonstrate the power generation,
transmission and energy security challenges
even developed economies are experiencing
and reinforces the importance of decentralized
power generation.
“The two Kalina Cycle power plants operating
in Japan - at the Kashima Steel W orks of
Sumitomo Metals and at the T okyo Bay Oil
Refinery of Fuji Oil - provide a practical demonstration
of how the technology can provide independent
power while reducing the energy
intensity of heavy industry. In addition to the
waste heat to power applications, the two
Eco-Gen Kalina Cycle units soon to be installed
at two hot spring sites in Japan, provide
a template for how r eliable power generation
can be achieved independently fr om established
national power networks.
“In collaboration with Taiwan’s Bureau of
Energy, SSNE recently conducted a successful
Kalina Cycle power plant field demonstration
in Taiwan which was well r eceived by
industry groups and is expected to result in a
number of commercial scale opportunities.
“In terms of building our Kalina Cycle business,
we continue to develop multiple projects
with recurring revenue streams by dir ectly
owning interests in power plants thr ough our
build-own-operate model. We took our first
steps in this strategy with acquisition of the
Husavik Geothermal Power Plant in Iceland
earlier this year and ar e evaluating a number
of other significant opportunities.”
能源技术服务中国
瓦萨比能源有限公司(Wasabi Energy)的
中国唯一授权方开始在上海建造一座顶级的
卡琳娜循环实验室和测试设备。该实验室被
设计用来帮助检测卡琳娜循环系统的主要部
件以及所集成的发电系统。
这座实验室由上海盛和新能源科技有限公
司(SSNE)负责建造,计划于今年晚些时
候投入运行。它将对卡琳娜循环技术在中国
的发展起到至关重要的作用。该项技术能够
利用地热和废热进行发电。
实验室中的设备可用于检测卡琳娜循环
系统的主要部件,包括1:1换热器和涡轮装
置,同时它拥有为额定输出功率高达5200
千瓦的卡琳娜循环系统进行完整的工厂检
测的能力。实验室还包括一个卡琳娜循环发
电站模拟器,可帮助改进工艺以及训练操作
人员。
盛和新能源科技有限公司专业开发废热、
地热和太阳能发电,尤其注重帮助客户提高
热电厂生产效率。它在中国各类能源密集型
行业拥有丰富的经验,其团队有能力交付卡
琳娜循环项目。
这套新的设施不仅将帮助盛和新能源科
技有限公司向中国市场提供卡琳娜循环发
电站,同时也将协助瓦萨比公司在全球范
围内的生产、组装以及工厂测试卡琳娜循
环系统。
在收购全球地热有限公司后,总部位于
澳大利亚的瓦萨比公司在全球范围内不断
地推广其技术,公司业务遍及巴基斯坦、
日本、台湾和冰岛。瓦萨比公司执行董事
长John Byrne说:“包括日本地震在内的国
际近期大事表明,即便是发达的经济大国
也正经历着发电、电力传输和能源安全方
面的挑战,分散型发电的重要意义显得更
为突出。”

News 2_Layout 1 6/17/11 4:51 PM Page 19
“在日本运行的两个卡琳娜循环发电站分
别位于住友金属公司的鹿岛钢厂和富士石油
公司的东京湾炼油厂,它们用实践展示了在
降低重工业单位产值能耗的同时如何通过技
术提供独立的电力。除了利用废热发电外,
还将在日本两个温泉安装两个Eco-Gen卡琳
娜循环装置,作为样板展示这种独立于现有
国家电网之外的发电站的可靠性。”
“盛和新能源科技有限公司最近与台湾能
源局合作,在台湾成功地做了一次卡琳娜循
环发电站的现场演示,并得到业界的一致认
可,预计将带来一系列的商业化规模合作机
遇。”
“在拓展卡琳娜循环业务方面,我们将通
过建造——拥有——运营的BOO模式直接
拥有发电厂的权益,继续开发能带来经常
性收入的各种项目。今年年初我们收购冰岛
的Husavik地热发电站就是实施这一战略的
第一步,而且我们正在评估其它多个重要机
遇。”
China Magnesium quarry acquisition
CHINA Magnesium Corporation has taken another
step along the path to become a large,
low-cost, vertically integrated producer of pure
magnesium and magnesium alloy, by signing
a contract to exercise its option to acquir e a
dolomite quarry near its Pingyao magnesium
ingot production plant in Shanxi Province.
The acquisition will progress the vertical integration
of the company’s supply chain from
dolomite supply through to magnesium and
magnesium alloy production. The quarry is at
the foot of T ianzhong Mountain and about
30km from the production plant.
China Magnesium has a supply agr eement
with the quarry and all dolomite requirements of
its plant to date have been fulfilled by the quarry.
The dolomite is transported by truck with two
sealed alternative road routes for transport of the
dolomite from the quarry gate to the plant.
Dolomite is, by volume, the largest raw material
component of magnesium pr oduction
and locking in supply through ownership of the
quarry is important in the company’s aim to become
one of the world’s largest, low cost producers
of magnesium and magnesium alloy.
To exercise the acquisition option, the company
must pay RMB5 million (Aus$730,000)
less the option fee of RMB300,000
(Aus$44,000) paid at the time of entering the
agreement in 2008. The pur chase is planned
to be funded from a mix of existing funds and
from a Chinese bank debt facility which is being
negotiated. Satisfying the conditions precedent
and completion of the acquisition of the quarry
is expected by the end of October 2011.
China Magnesium’s managing director Tom
Blackhurst says: “CMC is confident of its existing
supply chain for magnesium production
but will continue to take opportunities to vertically
integrate within the industry when the
acquisitions make good economic sense.
Dolomite is not a rare or complex raw material
but it is fundamental for the production of
magnesium, and control over supply requirements
is another positive for the company as
we progress our expansion plans.”
The company has started pr oduction of
pure magnesium following a recent upgrade
of its existing ingot pr oduction plant. It believes
it has become the first Australian company
ever to produce commercial quantities
of pure magnesium despite attempts by several
other Australian companies in the past.
Commissioning of the plant has pr ogressed
as planned and initial production is
at the annual rate of about 2000 tonnes of
pure magnesium. Around the clock production
is now being carried out fr om the new
furnaces at the plant.
The existing plant upgrade and first phase
expansion continue to proceed ahead of the
planned timetable and, as these developments
continue, magnesium alloying capability
will be added and annual capacity gradually
increased to 20,000 tonnes.
中国镁业收购白云石采场
中国镁业有限公司签署了对白云石采场执行
期权收购的协议,该采场靠近公司位于山西
省的平遥镁锭厂,这是公司为成为一个大型
的、低成本的、纵向一体化的纯镁及镁合金
生厂商而采取的另一措施。
此次收购将促进公司供应链从白云石供应
到镁及镁合金生产的纵向一体化发展。该采
场位于天中山(音译)脚下,距离镁锭厂约
30公里。
根据中国镁业与该采场之间达成的供货协
议,该采场满足镁锭厂所有的白云石需求。
白云石采用卡车运输,通过两条可供选择的
封闭路线从采场大门运输至镁锭厂。
从体积上来说,白云石是镁生产中最主要
的原材料成分,通过取得采石场的所有权进
而储备供应,这对公司成为世界上最大的低
成本镁及镁合金生厂商之一这一目标是至关
重要的。
根据期权收购协议,除去在2008年签署协
议时已支付的30万元费用(约4.4万澳元),公
司必须支付500万元人民币(约73万澳元)。
此次收购计划从已有的资金组合以及一个中
国银行债务机构筹资。公司预计在2011年
10月底实现这些先决条件并完成对白云石
采场的收购。
China
中国镁 业的总经理 Tom Blackhurst先 生
称:“中国镁业对公司镁产品现有的供应链
很有信心,但仍将在并购带来良好的经济效
益时,抓住机遇在行业里进行纵向整合。虽
然白云石不是一种稀有的或者复杂的原材
料,但是对镁的生产来说,是必不可少的,
另外,控制供应需求是公司进行扩张计划的
另一个积极因素。”
公司近期对现有镁锭厂进行改建后,已经
开始生产纯镁产品。即使一些其他的澳大利
亚公司在过去已经进行了尝试,相信公司依
然是首个大量生产商用纯镁产品的澳大利亚
公司。
工厂已经按照计划投产,纯镁的初始年
产量大约在2000吨。工厂的新炉具已经开
始全日制的生产。
为了提前完工,对现有工厂的改造以及首
个阶段的扩产工作在继续进行,随之,镁合
金产量将增加,年产量将逐步增加至2万吨。
Steel agreement in Shaanxi
A UNIFIED management agreement between
General Steel Holdings and Shaanxi Coal and
Chemical Industry Group Co and Shaanxi Iron
and Steel Group Co will r esult in increased
steel capacity and ef ficiency. The 20-year
agreement will see General Steel provide daily
management of operations and operate pr oduction
equipment constructed by Shaanxi
Steel at a facility owned by General's subsidiary
Shaanxi Longmen Iron and Steel Co in
Hancheng Shaanxi Province.
General Steel, one of China's leading nonstate-owned
producers of steel products and
aggregators of domestic steel companies,
says the agreement will also improve raw material
costs and reduce transportation costs.
At designed ef ficiency levels, the new
equipment, including two new 1280 cubic
metre blast furnaces constructed by Shaanxi
Steel, is expected to annually add 3 million
tonnes of crude steel production capacity.
Up to now , General Steel has 4 million
tonnes of crude steel annual pr oduction capacity,
plus 3 million tons of crude steel annual
production capacity jointly managed
with Shaanxi Steel.
The agreement follows completion of a twoyear
construction and installation process and
four months of testing of Shaanxi Steel's
equipment at the Longmen JV. The testing of
the equipment was completed in April 2011
and the Company launched full-scale production
in May. On an initial basis, the equipment
is expected to run at 85% of capacity , with
total annual output at the facility expected to
be about 6 million tonnes of crude steel.
July/August 2011 | ASIA Miner | 19

News 2_Layout 1 6/17/11 4:51 PM Page 20
China
China Magnesium’s project is in Shanxi Province, northern China.
Under the agr eement, Shaanxi Coal has
committed to providing the Longmen JV with
raw materials, including coke and coal, at
favourable pricing, as well as pr oviding access
to its nationwide transportation system
to reduce General Steel's overall transportation
costs. In addition, the agr eement includes
provisions under which both Shaanxi
Coal and Shaanxi Steel are expected to provide
financial support, including cr edit guarantees,
as needed for the operation.
General Steel's chairman and CEO Henry Yu
says, “We are extremely proud to have reached
this agreement with Shaanxi Steel and Shaanxi
Coal, the largest state-owned steel and coal
producers in Shaanxi Province. We are committed
to supporting the continued development
of China's fast-growing western region.
“We anticipate an increase in demand for our
products as a result of large-scale housing and
infrastructure projects, and look forward to working
with our partners to support the ongoing expansion
of China's economy and infrastructur e
through the development of western region.”
陕西省的钢铁协议
通用钢铁控股有限公司、陕西煤业化工集团
责任有限公司以及陕西钢铁集团有限公司之
间签署的一份统一管理协议将提高钢铁的产
能和效率。根据这份20年期限的协议,通
用钢铁公司将在陕西韩城的一个工厂(由该
公司旗下子公司陕西龙门钢铁责任有限公司
所有)提供日常运营管理和运营由陕西钢铁
集团建造的生产设备。
通用钢铁是中国领先的钢铁产品民营生产商
以及国内钢铁公司的集合商之一,这份协议
同时还将提高原材料成本并降低运输成本。
20 | ASIA Miner | July/August 2011
按预计生产水平,陕西钢铁制造的新设
备,包括两个新的1280立方米的高炉,
每年将可为公司生产总量300万吨的原钢。
迄今为止,通用钢铁每年可以生产400万
吨原钢,加上与陕西钢铁合资经营的每年
300万吨的原钢产量。
该协议将在两年的建设和安装过程以及对由
陕西钢铁提供给龙门合资公司的设备进行的
测试工作完成之后开始实施。设备测试工作
完成于2011年4月份,公司在5月份开始进行
全面生产。初始阶段,设备产能预期在85%,
工厂的年原钢总产量预计在600万吨左右。
按照该协议,陕西煤业致力于以优惠的价格
为龙门合资公司提供原材料,包括煤和焦炭,
同时借助其全国范围的运输系统降低通用钢铁
的总体运输成本。另外,该协议还包括陕西煤
业与陕西钢铁预计提供运营所需的包括信贷担
保在内的经济支持时需要遵守的规定。
通用钢铁的主席兼首席执行官Henry Yu先
生称,“我们非常骄傲可以与陕西省最大的
国有钢铁和煤矿生产商-陕西钢铁和陕西煤
业达成此份协议。我们将致力于为中国快速
崛起的西部地区的进一步发展提供支持。”
“我们期望我们的产品需求会随着大规模
的住房和基础设施项目的涌现而增加,并且
期待着与我们的合作伙伴共同努力为中国西
部地区发展带动的经济和基础设施的持续扩
张提供支持。”
New mill at Songjiagou
COMMISSIONING of the new mill is under
way at Majestic Gold’s Songjiagou project
in Shandong Province and gold-bearing ore
is being run through with the aim of assessing
the efficiency of the mill. The company
is running the facility at an initial daily rate
of 3000 tonnes and will pr ogressively in-
crease throughput towards full capacity of
6000 tonnes once the mill is running at optimal
efficiency.
During the commissioning stage Majestic
has been utilizing ore that has been stockpiled
at the new mill in or der to str eamline the
process. As well as completing the mill, which
has expanded daily thr oughout from 1400
tonnes, the company has also completed a
new tailings dam with all tailings lines and
water return systems in place and now in use.
Majestic’s president and CEO Rod Husband
says, “We are excited by the prospect of getting
the new mill on line and being in a position
to significantly increase production levels. This
represents a significant milestone in our transition
from exploration to production.”
Based on a recent preliminary assessment
report prepared by W ardrop, a Tetra Tech
company, Majestic will be able to pr oduce
around 105,000 ounces annually for the next
22 years, however, the company is considering
additional capacity expansion in the next
few years as 22 years is a lengthy mine life and
it should be more like 10-15 years.
Songjiagou is on the Jiaodong Peninsula in
Muping County and lies on the western edge
of the Muping-Fushan Gold Belt, which hosts
20% of the known gold deposits on the
peninsula. Gold production from the entire
peninsula accounts for mor e than 25% of
China's annual gold production, which is estimated
to be at least 9.3 million ounces.
The potential at Songjiagou lies at depth
and in sub-parallel structures to the known
resource which remain to be tested and in the
low-grade bulk tonnage potential within the
matrix of the host conglomerates.
宋家沟新建选厂
马捷斯提克金矿公司旗下宋家沟项目的新选
厂已经开始试运营,该项目位于山东省,旨
在评估选厂效率的金矿石贯通工作正在进
行。工厂初始日产量为3000吨,随后将逐
步提高,选场运营达到最佳效率时,将达到
最大产能6000吨。
在试运营期间,公司为了简化过程,使用
了堆积在新选厂的矿石。
新选厂使日产量从1400吨开始扩大,除了
完成选厂建设外,公司还完成了新尾矿坝的
建设,所有的尾矿管道和水循环系统已经就
位,目前正在使用中。
马捷斯提克的总裁兼首席执行官Rod Husband先生称,“我们对新选厂投入使用并且
将大幅度提高生产水平感到非常高兴。这
代表了我们从勘探向生产转换的一个重要
里程碑。”

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News 2_Layout 1 6/17/11 4:51 PM Page 22
China
根据近期由Wardrop公司准备的一份预评
估报告,Wardrop隶属于Tetra Tech公司,马
捷斯提克在未来22年里年产量大约可以达
到10.5万盎司,但是,22年的矿山寿命毕竟
十分漫长,公司正在考虑在未来几年扩大产
能,使矿山寿命更倾向于10-15年。
Loading ore in the open pit at Majestic Gold’s
Songjiagou project.
宋家沟位于胶东半岛的牟平县,坐落在牟
平-福山金成矿带,该成矿带拥有半岛上
20%已知的金矿床。整个半岛的黄金产量占
中国年黄金产量的15%以上,估计最少为
930万盎司。
宋家沟的潜力在于其深度以及与已知资源
相近的构造,公司将继续对这些资源进行测
试,另外还在于主要砾岩的添隙物品位低有
可能适于规模性开采。
New copper smelter for Qinghai
WESTERN Mining plans to build a copper
smelter with annual pr oduction capacity of
100,000 tonnes in the northwest Chinese
province of Qinghai. The cost of the project is
estimated at 2.28 billion yuan (about $347 million).
The Shanghai-listed and state-controlled
company says it will seek a partner to build the
smelter in the vicinity of Qinghai’s capital Xining
but intends to hold a majority stake. It will be
the company’s second copper plant.
The project is expected to incr ease pressure
on local supplies of copper concentrate,
according to state-backed research firm Antaike’s
senior copper analyst Yang Changhua.
He says Western Mining is likely to use copper
concentrate production in Qinghai and
Inner Mongolia for the new smelter but will still
need to buy concentrate from other miners.
Yang Changhua says the company will be
able to sour ce some copper concentrate
from its Yulong project in T ibet, which is
probably the largest untapped copper deposit
in China and wher e Western Mining
plans to expand production.
The analyst estimates that China, the
world’s leading copper consumer , will add
600,000 tonnes of designed copper smelting
22 | ASIA Miner | July/August 2011
capacity to 4.07 million tonnes this year. This
includes 200,000 tonnes of new capacity in
the southeast pr ovince of Fujian by Hong
Kong and Shanghai listed Zijin Mining Group.
Zijin aims to complete construction of the
smelter in the second half of the year and
start production. Securing copper concentrates
is also an issue for Zijin with its boar d
secretary Zheng Yuqiang stating, “It is one of
the main issues we have to deal with befor e
starting production.”
Concentrate for the new smelter will be
bought in China and from overseas markets as
China does not produce enough concentrates
itself. Completion of a new chemical plant,
which will take all sulphuric acid from the copper
smelter, is also a factor for the start-up.
青海新的铜冶炼厂
西部矿业计划在中国西北省份青海建造一座
年生产能力达到100,000吨的铜冶炼厂。建
造成本预计为22.8亿元人民币(约3.47亿美
元)。
这个在上交所上市的国有控股公司表示其
正在寻找一个合作伙伴在青海省省会西宁附
近共同建造该冶炼厂,但其需取得控股权。
这将会成为西部矿业的第二家铜冶炼厂。
据具有国有背景的研究公司安泰科的高级
研究员杨昌华介绍,该项目的建成会使当地
的铜精矿供给趋紧。据其分析,西部矿业有
可能以产自青海和内蒙古的铜精矿供应该铜
冶炼厂的生产,但仍然需要从其他铜矿购买
铜精矿。
杨昌华介绍西部矿业可以从其位于西藏的
玉龙项目获得铜精矿,玉龙项目可能是中国
尚未开发的最大铜矿,西部矿业计划在该项
目扩大生产。
该研究员分析说,中国作为世界最大的铜
消费国,今年将会把铜设计处理能力增加60
万吨至407万吨。这其中20万吨将由在香港
和上海两地上市的紫金矿业有限公司实现。
紫金矿业计划在今年上半年完成铜冶炼厂
的建设并开始生产。确保铜精矿的供应也是
紫金矿业的一大难题,其董事会秘书郑于强
称:“确保铜精矿的供应将是我们开始生产
前的主要任务之一。”
由于中国不能生产足够的铜精矿,新的铜
冶炼厂所需的铜精矿将会从中国和海外市场
同时购入。获得化工厂生产所需的硫酸将是
又一大难题。硫酸是铜冶炼厂的副产品。
Strong BYP gold assays
ENCOURAGING gold assays have been r eceived
from the first eight underground drill holes
at Silvercorp Metals’ newly acquir ed, 70%owned
BYP Gold-Lead-Zinc Project in Hunan
Province, Central China. BYP is expected to be-
come Silvercorp’s third production foothold in
China behind the four silver -lead-zinc mines at
the Ying Mining Camp in Henan Pr ovince and
the GC silver-lead-zinc project in Guangdong.
The best initial diamond drill results are 69.5
metres @ 5.0 grams/tonne gold including 7.21
metres @ 10.68 grams/tonne, 24.58 metres @
5.55 grams/tonne including 10.23 metr es @
7.34 grams/tonne, 33.15 metr es @ 4.34
grams/tonne including 14.83 metres @ 7.19
grams/tonne, 47.29 metr es @ 4.50 grams/
tonne and 46.67 metres @ 4.61 grams/tonne
including 10.7 metres @ 9.46 grams/tonne.
These are initial r esults from Silvercorp’s
planned 50,000 metre surface and under -
ground drill program which is intended to upgrade
the curr ent historical r esources and
expand the mineralization bodies along strike
and down-dip. Currently four underground
drill rigs are operating from underground tunnels
developed within the No3 gold mineralization
zone at the 252 metre elevation, about
100 metres below surface. The underground
drills are performing infill drilling at 25 to 50
metre spacing intervals within the zone and
will test the No1 gold zone and XII lead-zincgold
zone about 100 metr es beneath the
No3 zone. Once further defined by the infill
drilling, the No3 gold zone will be the focus
of initial mining.
In addition to the underground drilling, three
surface drill rigs ar e carrying out step-out
drilling to expand the known zones and to explore
for new zones.
A geological report on the property was completed
by the Chinese gover nment geological
team in 1992. Based on 36,151 metres of diamond
drilling in 105 holes, the r eport defined
5.44 million tonnes of gold mineral r esources
grading 2.76 grams/tonne, containing 482,000
ounces of in situ gold, and 3.12 million tonnes
of ‘higher grade’ lead and zinc mineral resources
grading 2.45% lead and 5.26% zinc. A qualified
person has not done sufficient work to classify
the historical estimates as curr ent mineral resources
and Silvercorp is not treating the historical
estimates as current mineral resources.
Silvercorp has completed modification of the
existing flotation mill at BYP by adding a cone
crusher, expanding the mill’s daily capacity from
400 to 500 tonnes. The mill is tuning up by pr ocessing
lower grade gold or es recovered from
underground tunnelling. Initial mining will focus on
some of the higher grade sections within the No3
gold zone. The BYP mine is expected to produce
and mill 130,000 tonnes of or e at a grade of 7
grams/tonne gold in the current fiscal year.

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Silvercorp is developing the GC silver-lead-zinc project in Guangdong Province as its second China production base.
BYP强有力的黄金测试结果
希尔威金属矿业有限公司新收购的BYP金-
铅-锌项目首批施工的8个地下钻孔得到的黄
金测试结果鼓舞人心,该项目位于中国中部
的湖南省,公司拥有其70%的股份。BYP预
计将成为继位于河南省月亮沟的四个银-铅-
锌矿和位于广东省的高城银-铅-锌矿之后公
司位于中国的第三个生产基地。
首批最佳的金刚石钻探结果为:见矿69.5
米金品位为5.0克/吨,其中7.21米品位为
10.68克/吨;见矿24.58米金品位为5.55克/
吨,其中10.23米品位为7.34克/吨;见矿
33.15米金品位为4.34克/吨,其中14.83米
金品位为7.19克/吨;见矿47.29米金品位为
4.5克 /吨 ;见矿 46.67米 金 品 位为4.61克
/吨,其中10.7米金品位为9.46克/吨。
以上是希尔威计划的5万米地表和地下钻
探项目得到的最初结果,该项目旨在提高当
前的历史资源量,并沿走向和下倾方向扩大
矿体。
目前,四个地下钻机正在位于海拔252
米、大约距离地表以下100米的三号金成矿
带的地下巷道里运作。地下钻探采用加密钻
探技术,间隔为25-50米,将测试位于3号
区域以下100米处的1号金矿区域和12号铅-
锌-金矿区域。一旦加密钻探得到了进一步
确认,3号金矿区域将成为首先进行开采的
重点。
除了地下钻探外,3个地表钻机正在进行
探边钻探,以扩大已知区域并勘探新区域。
该矿区的地质报告在1992年由中国政府的
地质小组完成。以施工了105个钻孔共钻进
36,151米的金刚石钻探为基础,这份报告确
定了544万吨黄金矿产资源,品位为2.76克/
吨,即含金48.2万盎司,另外,确定了312
万吨较高品位的铅和锌矿资源,其中铅品位
为2.45%,锌品位为 5.26%。专业人士还未
24 | ASIA Miner | July/August 2011
做足够的工作将历史资源估计划分到当前的
矿产资源量中,希尔威也没有把历史资源估
计作为当年的矿产资源量。
希尔威通过增加一个锥形压碎机完成了对
BYP现有浮选厂的改造,使选厂的日矿石处
理量从400吨增至500吨。该选厂通过处理地
下掘进中回收的低品位金矿石开始试运营。
初步采矿重点放在3号金矿区域内的一些较高
品位区间。BYP矿预期在当前财政年的采矿
和磨矿能力达到13万吨,金品位为7克/吨。
New drilling program at CSH
CHINA Gold Inter national Resources has
started a major drilling campaign at its Chang
Shan Hao (CSH) gold mine in Inner Mongolia.
The new drill program began in late May and
will consist of about 55,000 metr es of diamond
drilling in over 100 drill holes.
The focus of the drill program is to delineate
more resources at depth with expectation to
further expand the current mining capacity at
CSH. Currently the company has 11 drill rigs
turning at the mine site and the total budget
for the drill program is about RMB50 million
(about US$7.7 million).
China Gold International’s CEO Dr Xin Song
says that the mineral r esource at CSH has
the potential to be greatly increased after this
drill campaign and that the strategy to further
expand mining and processing capacities at
the CSH gold mine is one of the company's
primary goals. China Gold Inter national is a
mining company whose principal property is
CSH. The company began producing gold at
CSH in July 2007.
In addition the company now owns the
Jiama Copper Polymetallic Project in Tibet,
which is one of the largest copper polymetallic
mines in China. It is a large scale
polymetallic deposit consisting of copper ,
molybdenum, gold, silver, lead and zinc, and
is currently in the production stage.
China National Gold Gr oup, which owns
about 39% of China Gold Inter national, is
currently collaborating with the Nonferr ous
Metals Society of China (NMSC) in Beijing to
develop multi-metal separation technology
which will benefit the Jiama pr oject by improving
the methods of separation and r ecovery
rate of the various metals.
Special technical staff from Jiama are working
closely with processing specialists from NMSC
to test separation technology of the pr oject in
order to further optimize the metal r ecovery
rate. NMSC is a national industry society comprising
scholars, scientific and technical personnel
and enterprise management fr om all fields
in the non-ferrous and related industries.
长山壕启动新的钻探作业
中国黄金国际资源有限公司在其位于内蒙古
的长山壕(CSH)金矿启动了大型的钻探作
业。本次的新钻探作业始于5月下旬,采用
金刚石钻探技术,将钻进大约5.5万米,预
计超过100个钻孔。
此次钻探项目的主要目的是在深度上圈定
更多的资源,以进一步增加长山壕当前的开
采能力。目前11个钻孔正在矿山现场打钻
,本次钻探项目的总预算约为5000万元人
民币(约770万美元)。
中国黄金国际资源有限公司的首席执行官
宋鑫先生表示,本次钻探后,长山壕金矿的
资源量将具有大规模提升的潜力,进一步扩
大长山壕金矿采矿和处理矿量能力的战略是
公司的主要目标之一。
中国黄金国际资源公司是一家采矿企业,
主要矿产项目为长山壕金矿。公司于2007
年7 月开始在其长山壕金矿生产黄金。
此外,公司目前还拥有位于中国西藏的甲
玛铜多金属项目,该项目是中国最大的铜多
金属矿之一。它是一个大型的多金属矿床,
富含铜、钼、金、银、铅和锌金属,目前处
在生产阶段。
中国黄金集团持有中国黄金国际39%的股
份,目前,集团正在同位于北京的中国有色
金属学会(NMSC)合作发展多金属分离技术
,将通过提高多种金属的分离方法和回收率
来优化甲玛项目。
甲玛项目专门的技术人员正在同来自中国
有色金属学会的选矿专家密切配合,为进一
步优化金属回收率而测试该项目的分离技术
。中国有色金属学会是由中国有色金属行业
及其相关行业的学者、科学技术人员和企业
管理人员自愿结成的全国性的行业学会。

News 2_Layout 1 6/17/11 4:51 PM Page 25

News 2_Layout 1 6/17/11 4:51 PM Page 26
Mongolia
TUGRIK HEADS NORTH – JUST LIKE MONGOLIA
26 | ASIA Miner | July/August 2011
IN 2010 the Mongolian Tugrik (MNT) topped
global currency charts, incr easing around
15% to the US Dollar (USD), followed closely
by the Australian Dollar (AUD) with a 13%
rise. The Mongolian exchange also boasted
138% gains from the year to build a bullish
outlook on the country’s future as a major
commodity exporter, according to Mongolia’s
Monet Capital Investment Bank.
The AUD/MNT link is no coincidence,
Monet says in a research report. China’s demand
for coking coal, copper, iron and other
raw materials is expected to drive this tr end
long into the future, and as Mongolia builds
its exporting prices up to compete on a
global scale, the mining sector will lift the
country’s currency high.
Foreign Direct Investment (FDI) in Mongolia
hit a new record in 2010, up 143% YoY
to $1.4 billion. Demand for MNT investments
has af fected the curr ency directly
and continues to do so. Although the nation
relies on imports for the majority of pr oducts,
demand for its raw materials and
heavy investment has driven an influx of
dollars and Yuan. The MNT is being bought
aggressively as the hunt for r esources
builds momentum.
In 2011 the Tugrik has appreciated 0.83%
after a bold correction from 2010’s hike. The
hype surrounding Mongolia’s mining sector
has been subdued from its frantic climb and
the currency has reflected the lull in FDI. A
general market nervousness coupled with
certain government decisions has seen the
local stock exchange and foreign listed Mongolian
companies suffer the withdrawal. The
following factors have r eversed investors’
short term enthusiasm:
• The Rivers and For ests protection law
came into action, thr eatening 1782 of
4000 licences being used in the country.
• Foreign investments were sold in companies
worldwide to prepare for the coming
year’s development, reeling in high gains
made on Mongolia-related stocks.
• The Tavan Tolgoi road was closed fr om
over-use, highlighting the lack of infrastructure
support for the mining boom.
• Protests demanding a disbanding of the
government and cancellation of the OT
agreement threw political instability into
the risk mix.

News 2_Layout 1 6/17/11 4:51 PM Page 27

News 2_Layout 1 6/17/11 4:51 PM Page 28
Mongolia
Inflation is a major concer n for the Bank of
Mongolia (BoM). A pr omised $1000 ‘gift’ to
each citizen last year and a 30% incr ease in
government employees’ wages has inflamed
the World Bank with reports of disapproval, and
the IMF predict levels of up to 20% if not controlled
properly. Inflation will continue to threaten
non-mining sectors as the boom continues and
the government’s aims for 2011 onwar ds will
be to manage this growth accordingly.
The BoM’s policy for 2010 was somewhat
‘laissez-faire’, and monthly curr ency flow
reached more than $1.5 billion by year end.
In a $6.6 billion economy this is a serious factor
in driving up the MNT, especially when the
figure continues to increase.
About 80% of foreign trade was conducted
in USD, r esting the tugrik heavily on the
greenback. During May, however, the BoM
signed a RMB 5 billion (US$770 million)
MNT/RMB swap agreement with China to
allow a more stable exchange with its main
trading partner. This had a direct effect on the
MNT/USD rate which climbed 5.6% in the
week leading to the announcement. However,
this has been corrected and the MNT is
back on its appreciation trend.
The IMF predicts 21% GDP growth in 2014
once Oyu Tolgoi is in full production. The continuing
drive from China’s resource hunger and
GDP quotas is expected to boost Mongolia’ s
exports and in turn its currency. For an investor
into Mongolia, the currency risk in the mid-term
is relatively low. However, there are certain factors
that could destabilize its appreciation:
• Political instability – pr otests have been
peaceful so far but tension can rise and
the government fears backlash from any
28 | ASIA Miner | July/August 2011
major unpopular decision. Mining is a
touchy subject for many Mongolians that
may see it as foreign theft, destruction of
land and state/investor greed.
• China’s backlash – although China’s imports
are only expected to grow as its currency
appreciates, the macro-economic
pressure from artificially r estraining the
Yuan could have adverse ef fects on its
economy in the long-term. If Chinese
competitiveness decreases and its economy
slows, Mongolia’s raw materials will
be in far less demand, its exports will suffer,
and the currency will deflate.
The BoM is confident in its ability to keep
the MNT between 1150 -1265 to the dollar
in the coming year but Monet predicts this will
be a tough promise to keep and the currency
may appreciate more as FDI and mining development
continues. The MNT will appreciate
to near 1000 to the dollar by 2020 if it
continues on the curr ent path, and all evidence
is supporting a fast appr eciation that
will benefit investors greatly in coming years.
Pre-strip to start at Southern Oyu
PRE-STRIPPING for the phase one open-pit
mine on the Southern Oyu deposits at Ivanhoe
Mines’ Oyu T olgoi Copper-Gold-Silver
Project is on schedule to begin this quarter .
All operational-readiness activities are also on
schedule for the project’s first open pit while
other construction and development activities
continue at full pace as the company pr epares
for initial commercial production in the
first half of 2013.
The final selection of the open-pit mining
fleet has been made with purchase orders is-
Construction of the feed conveyors for the SAG mills at the concentrator complex of Ivanhoe’s Oyu Tolgoi project.
sued to international manufacturers. All major
mining equipment has been secur ed in line
with the open-pit's pr e-stripping schedule.
The supplier for the explosives service contract
has been selected and the permit for
open-pit blasting has been obtained from the
Mongolian Government.
Oyu Tolgoi initially is being developed as an
open-pit operation, with the first phase of mining
planned to start at the near-surface Southern
Oyu deposits, which include Southwest
Oyu and Central Oyu. A copper concentrator
plant, related facilities and necessary infrastructure
that will support an initial daily
throughput of 100,000 tonnes of ore are being
constructed to process ore scheduled to be
mined from the Southern Oyu pit.
Full-scale construction at Oyu Tolgoi continues
to advance and key elements of the
project, including the concentrator complex,
remain ahead of schedule. Official approvals
were received in early May enabling the project
to proceed with construction of a 95km
high-voltage power transmission line to deliver
electricity expected to be imported from
China to supply the initial mining operation.
An 85,000-tonne/day underground blockcave
mining operation is also being developed
at the Hugo North deposit, with initial
production expected to begin in 2015. The
throughput capacity of the concentrator plant
is expected to be expanded to about
160,000 tonnes when the underground mine
begins production. Development of the first
lift of the phase-two underground block-cave
mine at Hugo North continues while lateral
mine development on the 1300-metre level is
ahead of schedule.

News 2_Layout 1 6/17/11 4:52 PM Page 29
Fluor Corporation is in charge of overall Oyu
Tolgoi program management, as well as services
related to engineering, procurement and
construction management for the or e processing
plant and mine-related infrastructure,
such as roads, water supply, a regional airport
and administration buildings.
Meanwhile, exploration drilling at the Southwest
Oyu deposit is targeting the downplunge
extension of mineralization below the
already defined drill resource. The drilling has
identified previously undefined mineralization,
including 98 metr es @ 1.75 grams/tonne
gold and 0.64% copper, with a copper-equivalent
grade of 1.8%, at a down-hole depth of
between 1086 and 1184 metres.
Drilling is also ongoing at the Heruga North
deposit, the Javkhlant II IP anomaly , on the
Shivee Tolgoi licence and at the Ulaan Khud
North zone on the Ivanhoe-BHP Billiton jointventure
licence to the north.
Sharyn Gol expansion plans
SHARYN Gol Joint Stock Company is undertaking
a major strategic r eview of pr esent
policies and strategy in order to gain as much
benefit as possible from its thermal coal r esources
in northern Mongolia. The review is
investigating the potential for an accelerated
production expansion to access new domestic,
regional and seaborne export markets.
The company believes a major pr oduction
expansion is supported by a recent resource
upgrade, which has mor e than tripled the
pre-existing resources, with further exploration
upside also identified.
The review will enable the company to plan
for phased development of a large, long life,
open cut and underground mining operation
that will help transform Sharyn Gol into a major
international mining company expanding on its
existing open cut coal mining operation.
Prefeasibility study (PFS) level investigations
are included in the review for a staged expansion
to annual 4-5 million tonnes run of mine
(ROM) production over the medium term and
8-10 million tonnes ROM long term.
Sharyn Gol estimates that its total thermal
coal resource now stands at 374 million
tonnes. The company has engaged a suite of
Australian consultancy firms to investigate the
potential for an expansion in stages.
The JORC-compliant r esource comprises
190.5 million measured tonnes, 84.4 million indicated
tonnes and 98.9 million inferr ed
tonnes. Of the overall r esource, 337.6 million
Mongolia
tonnes are above 300 metres from the surface,
which allows for a continuation of open cut
mining for decades. The r esource inventory
has been calculated from a significantly larger
non-JORC inventory of 437 million tonnes.
A new open cut area containing 220.3 million
tonnes down to 300 metr es has been
identified adjacent to existing open pit while
there are also adjacent exploration targets
within the company’s lease area, demonstrating
potential for further large increases to the
existing coal resource base.
Coal quality and washability test work indicates
strong potential to produce a high yield,
low ash, moderate to low sulphur , and high
calorific value thermal coal pr oduct suitable
to export to international markets.
The company is also investigating the potential
for a low cost and relatively simple two
stage coal wash plant that can produce less
than 15% ash thermal coal suitable for r egional
and the North Asian seabor ne export
markets with this work including investigating
the potential for a PCI coal product.
It is also studying rail infrastructur e and
considering a low-cost capital requirement to
reinstate the annual 2.5 million tonne capacity
on the company’s dedicated 65km rail spur
July/August 2011 | ASIA Miner | 29

News 2_Layout 1 6/17/11 4:52 PM Page 30
Mongolia
as well as identifying the capital requirement
to meet medium and long term expansion
targets. The spur line is already connected to
the Trans Mongolian Railway, which connects
the mine 179km north to Russia and 1047km
south to Zamyn Uud at the Chinese border.
Sharyn Gol chairman B Batmunkh says,
“The company offers an extremely rare combination
in the Mongolian coal mining sector:
having a curr ent mining operation, existing
dedicated and expandable rail infrastructur e,
a large workforce, and now a major resource.”
New Voyager copper acquisition
VOYAGER Resources is expanding its interests
through acquisition of up to 80% of the Khul
Morit Copper Project in the Gobi region. It is the
Australian-listed company’s second major porphyry
project acquisition in southern Mongolia.
Two high order gradient array induced polarization
(IP) anomalies have been identified
at Khul Morit. These extend for mor e than
800 metres and 2500 metr es respectively,
and are broadly consistent with identified
copper mineralization identified at surface.
The larger anomaly is open to the east.
The project comprises five exploration licences
for about 50sqkm of highly prospective
ground. Limited drilling has r eturned
highly encouraging shallow high-grade copper
mineralization, including 27 metr es @
2.09% copper from 28.8 metres which included
12.5 metres @ 3.63% copper fr om
43.3 metres. This intersection is on the periphery
of the smaller 800 metr e-long IP
Voyager Resources’ projects are in southern, central and northeast Mongolia.
30 | ASIA Miner | July/August 2011
anomaly and remains open along strike and
down dip.
Voyager plans to undertake the following
detailed exploration during the r emainder of
2011:
• A gradient array IP geophysical survey covering
the project area;
• At least 100 line kilometres of shallow and
deep penetrating Dipole-Dipole or Pole-
Dipole IP geophysical surveys over the
identified gradient IP anomalies;
• A comprehensive gravity survey at 200 by
100 metre spacing for about 4000 stations
over the project area;
• An infill ground magnetics survey at 100
metre line spacing for about 1000 line kilometres;
• A detailed surface geochemistry program;
and
• Complete at least 10,000 metr es of reverse
circulation and diamond core drilling.
Voyager believes Khul Morit is an exceptional
project within an under-explored ‘world-class’
porphyry belt that hosts the massive Oyu Tolgoi
porphyry deposit, which currently has a resource
of 3.75 billion tonnes @ 0.98% copper
and 0.38 grams/tonne gold in measur ed, indicated
and inferred categories.
Meanwhile, the company has r ecently received
the remaining analytical results from
its Khongor Copper Gold Project in the South
Gobi, where drilling focused on delineating
extensions and testing shallow geophysical
targets outside of the known mineralized near
surface areas. Voyager is now undertaking a
number of IP, gravity and ground magnetic
geophysical surveys prior to deeper diamond
drilling. The IP survey is essential to targeting
deeper mineralization as seen in similar systems
such as Oyu Tolgoi.
Twenty four diamond drill holes wer e completed
for a total of 3170 metres and many intersected
porphyry-style copper mineralization.
Drilling focused on extensions to the known
mineralized system and shallow geophysical
targets external to identified mineralization.
Best assay r esults include 39 metr es @
0.5% copper, 0.14 grams/tonne gold and 1.1
grams/tonne silver; 17.3 metres @ 0.5% copper,
0.14 grams/tonne gold and 1.6 grams/
tonne silver; 30.3 metres @ 0.6% copper, 0.15
grams/tonne gold and 1.1 grams/tonne silver;
37.8 metres @ 0.8% copper , 0.15 grams/
tonne gold and 2.3 grams/tonne silver, including
25.1 metres @ 1.1% copper, 0.21 grams/
tonne gold and 3.3 grams/tonne silver; and
5.4 metres @ 1.0% copper, 0.5 grams/tonne
gold and 1.9 grams/tonne silver.
Hunnu secures Altai Nuurs
HUNNU Coal has added to its impr essive
array of Mongolian coal pr ospects with the
acquisition of a 70% interest in the Altai Nuurs
Coal Joint V enture Project in Gobi Altai
Province in the country’s southwest. There is
an exploration target of between 250 million
and 500 million tonnes based on drilling, coal
test work and wire frame modelling.
Through its subsidiary Hunnu Investments,
the ASX-listed company acquired Rio Tinto
Minerals Development’s subsidiary that has a
controlling interest in the JV pr oject through
70% of Rio AD LLC, holder of 2 licences in
the Gobi Altai, and 70% of Rio Gobi LLC,
holder of 8 licences in the pr ovince. Altai
Nuurs comprises 6 exploration licences totalling
46,212 hectares and four mining licences
totalling 202 hectares.
Preliminary test work indicates a pr emium
hard coking coal fraction with 1.6% moisture,
10.7% ash, 18% volatile matter, calorific value
of 7460 Kcal/kg, total sulphur of 0.048% and
a coke strength ratio of +70. These parameters
compare favourably with similar coking
coal projects elsewhere in the world.
Altai Nuurs has granted mining licences with
a fast track development scenario and Hunnu
plans a major drilling program for the remainder
of 2011 to follow up the 19,437 metres of
drilling completed in 107 RC and cor e drill
holes. Preliminary open cut modelling potentially
indicates a low strip ratio of 3.5:1.

News 2_Layout 1 6/17/11 4:52 PM Page 31
Trial operations at one of Hunnu’s coal properties in Mongolia.
Drilling results demonstrate that coal
seams are developed over at last 4km
strike and comprise folded and tectonized
units. While the work completed to date
has only allowed the definition of a preliminary
geological model, it has demonstrated
the presence of potentially economic yields
over a coher ent geographical ar ea. The
project is in close pr oximity to sale points
at either the mine gate or by trucking about
250km by r oad to the Burgastai bor der
crossing into China.
Hunnu’s managing director George Tumur
says this is a major acquisition for the company
and represents a clear futur e growth
path. Hunnu has 413 million tonnes of JORC
reported coal resource across its other Mongolia
projects and has become one of the
Mongolia
major explorers for coking and thermal coal
deposits in the world-class coal provinces of
southern Mongolia.
He says the company intends to continue
its aggressive exploration and acquisition efforts
and with the support and expertise of its
strategic partner Banpu, move fr om exploration
to mine development and then into
production, all within this year.
July/August 2011 | ASIA Miner | 31

News 2_Layout 1 6/17/11 4:52 PM Page 32
Indonesia
NEW INCO NICKEL PROCESSING FACILITY
Operations at a PT Inco nickel project on Sulawesi.
PT International Nickel Indonesia (Inco) has
partnered with two Chinese steel companies
to build a nickel pr ocessing facility in Morowali,
Central Sulawesi. The Chinese companies
are Baosteel Resources Co and Pan
China International.
PT Inco, which is a unit of Brazil’s Vale Inco,
one of the world's top nickel producers, has
signed a Memorandum of Understanding to
conduct a pre-feasibility study (PFS) to determine
continuity of the project. The PFS is expected
to be completed during September.
In the next five years, Inco aims to increase
annual production to 90,000 tonnes or up by
15,000 tonnes from the current production of
about 75,000 tonnes. President director Tony
Wenas says that in order to achieve its target,
the company will carry out aggressive exploration
and exploitation pr ograms in which
mining activities in different locations will be
carried out simultaneously instead of using
traditional sequential mining. He says the relinquishment
of 28,000 hectares of its concession
areas will not affect the company’s
future productivity.
Inco’s capital project control and financial
evaluation general manager Bayu W idyanto
says this year the company has allocated
US$232 million on capital expenditure, which
is 27% more than 2010. The investment will
include $120 million for sustaining capital,
$97 million for growth capital and $15 million
for health, safety and the environment.
In addition, the company says it intends to
set aside funds in the capital plan to build a
road from Bahodopi to Sorowako and to develop
a Bahodopi mine as part of its CoW
undertakings.
Inco produces nickel in matte fr om lateritic
ores at its integrated mining and processing facilities
near Sorowako on Sulawesi, wher e it
has a contract agreement until 2025. The com-
32 | ASIA Miner | July/August 2011
pany says it appears that it may only be able
to obtain one 10-year extension, continuing its
presence beyond 2025 to December 2035.
The company has set out a strategic development
plan covering ar eas in South Sulawesi,
Southeast Sulawesi and Central
Sulawesi, which is being discussed with the
government. “We will start the expansion in
2011 as soon as the gover nment approves
our plan,” Tony Wenas says.
He added that the expected completion of
a 90MW hydropower plant in Karebbe, South
Sulawesi, in August would also support the
expansion of the company’s production capacity.
The plant would replace a higher-cost
geothermal power generator, thereby reducing
the company’s production costs.
Last year, the firm produced 75,989 tonnes
of nickel matte, with its entire production sold
in US dollars under long-term contracts for refining
in Japan. Nickel pr oduction in 2011 is
planned to be lower than 2010, mainly due to
the rebuilding of electric furnace number two.
Sulawesi pre-feasibility work
SHERRITT International Corporation has allocated
$13 million this year for expenditur e
at its Sulawesi Nickel Project. The funds will
be used to advance pre-feasibility and feasibility
work on the project.
The Canadian company has been working
on permitting to date this year as is pr epares
for the next phase of the r esource
drilling program, environmental and baseline
studies, and the pre-feasibility study. The Sulawesi
project is a large, high grade undeveloped
lateritic nickel deposit on the Indonesian
island of Sulawesi.
Sherritt has been appointed operator and
will licence its commercially proprietary technology
in the Sulawesi project. On November
30, 2010, the company entered into an earnin
and shareholders agreement with a subsidiary
of Rio Tinto whereby it could acquire
a 57.5% interest in a holding company that
owns the Sulawesi Nickel Project upon funding
US$30 million and meeting certain other
conditions by March 15, 2013.
Sherritt may elect to spend an additional
US$80 million by December 31, 2016 towards
producing a feasibility study fr om
which a development decision will be made.
If the additional US$80.0 million is not spent,
the corporation’s interest in the Project will be
forfeited. In compliance with Indonesian mining
law, local Indonesian inter ests are expected
to acquire a 20% stake in the project
after which Sherritt and Rio Tinto’s economic
interest will be 46% and 34%, respectively.
Study work at Tembang
SUMATRA Copper and Gold has signed
agreements with four leading mining consultancies
in respect of the pre-feasibility study
(PFS) for the Tembang Gold and Silver Project,
Tembang in Sumatra. The company aims to
have the PFS completed during July to pave
the way for a definitive feasibility study (DFS)
to be carried out in the second half of 2011.
The PFS will be prepared with the support
of independent consultants including PT
Runge Indonesia, L ycopodium Minerals,
Knight Piésold and PT MAL Sriwijaya (PTMS).
PT Runge Indonesia is the Indonesian subsidiary
of the Australian-based inter national
consulting group Runge Limited. It will act as
co-ordinator of the study and be r esponsible
for the mining input and economic analysis.
Runge provides consulting, training, and software
for the mining and related services industries
globally. Runge companies include MRM
Mining Services in South Africa, Pincock Allen
& Holt in the USA, GeoGAS in Australia and
Minarco-MineConsult, mining and energy industry
advisors in the Asia Pacific region.
An overview of Sumatra Copper and Gold’s Tembang
project in Sumatra.
Lycopodium is an Australian-based international
engineering services and project management
group responsible for metallurgical
input and test work and process design. Lycopodium
has provided feasibility studies and
EPCM services for many r ecent gold pr ocessing
plants, of similar design to Tembang,
in Australia, Asia, and Africa.

News 2_Layout 1 6/17/11 4:52 PM Page 33
Knight Piésold’s mining services expertise has
been utilized on hundreds of surface and underground
mining projects worldwide, particularly
with respect to geochemical characterisation,
waste management, tailings disposal, heap
leach pads, rock mechanics, groundwater evaluation,
water supply, water management and
environmental services.
PTMS, an Indonesian based environmental
engineering company, is one of the thr ee
companies approved by West Sumatra Government
to undertake a full Environmental Impact
Assessment for the project.
Sumatra’s managing director Jocelyn Waller
says that these appointments represent a significant
step towards timely completion of the
DFS. “We selected each consultant on the
strength of their experience and technical
strengths, plus their understanding of local culture,
conditions and requirements for project
development in Sumatra.”
Geothermal heats up
PANAX Geothermal is close to beginning
drilling operations on its first geothermal project
in Indonesia. Required geochemical sampling
works were successfully completed on
the Sokoria Geothermal Project in early June.
Panax Geothermal staff test a hot spring at Sokoria watched by interested locals.
Drilling is expected to begin after the findings
of the testing have been analysed and a detailed
conceptual reservoir model is finalized to
confirm preferred sites of appraisal wells.
Panax will develop the Sokoria Project in a joint
venture with PT Bakrie Power. Panax has a 45%
interest and is the operator of the project, which
is on Flores Island. Sokoria has a power pur -
chase agreement of US$125 per megawatt hour
for the first 30MW of geothermal production.
Indonesia
ASX-listed Panax has completed a detailed
geochemical sampling program for Sokoria
which was carried out by Sinclair Knight
Mertz New Zealand in conjunction with local
Indonesian contractors. The aim of the pr ogram
was to finalize all r equired geoscience
works prior to drilling operations.
The following geochemistry r equirements
were identified following a detailed review to
ensure no information gaps existed:
July/August 2011 | ASIA Miner | 33

News 2_Layout 1 6/17/11 4:52 PM Page 34
Indonesia
• Gas and condensate samples wer e collected
from fumaroles;
• Gas samples were collected from the existing
exploration wells; and
• Water samples wer e collected fr om a
number of hot springs and one of the
crater lakes on Mount Kelimutu. Gas samples
are being analysed in Indonesia and
water samples in New Zealand.
Panax was assisted with the survey by personnel
from Department of Mines and Energy,
Ende Regency (Flores) and people from
Sokoria, Roga and Toba villages.
In-house pre-feasibility modelling has
been completed on the pr oject. The modelling
is based on a 10MW development
which will be incr eased to 30MW 12-18
months after the initial development. T otal
costs of generation will be about US$57 per
megawatt, inclusive of capital and operating
costs and costs of finance, and based on
average estimated production rates of 5MW
per production well.
Indonesia is considered a world geothermal
hotspot, with the government planning to increase
generation by 240% in the next four
years to more than 4000MW, or the equivalent
of about 12 power stations. The National
Geological Agency of Indonesia estimates
total geothermal potential at about
27,000MW which is equivalent to about 50
large coal-fired power stations. As part of its
carbon strategy, the Indonesian Government
has announced a guaranteed feed-in tariff of
US$97 per megawatt hour, plus carbon credits,
to geothermal energy generators.
Panax and Bakrie have also agr eed an
agreement for joint development of the
165MW Ngebel Geothermal Project in East
Java and have another agr eement with PT
Dairi Prima Minerals (DPM), a subsidiary of
Bumi Resources Group, for the supply of up
to 25MW of geothermal power for PT DPM’s
underground Dairi Prima lead/zinc mine that
is to be constructed in northern Sumatra.
Northern Sumatra region hosts one operating
geothermal power plant at Sibayak geothermal
field, which is operated by
Pertamina Geothermal. This field is under-utilized
and discussions are under way regarding
the development of spar e capacity for
supplying the Dairi Prima Mine, in a co-operative
effort as part of the binding terms that
have been agr eed between Panax/Bakrie
and PT DPM. There are also two other advanced
geothermal prospects, Pusuk Buhit
and Sipoholon, nearby.
34 | ASIA Miner | July/August 2011
Encouraging samples
TERRA Firma Resources, through its whollyowned
Indonesian subsidiary PT Terra Mineral
Resources Indonesia, has received encouraging
first reconnaissance sample results from
the initial exploration program at its Malawa
Property in South Sulawesi. This early field exploration
program consisted of prospecting,
reconnaissance mapping and chip sampling.
A specimen from Terra Firma’s Malawa property.
Sampling from a small test pit at Terra Firma’s Malawa project.
This work has r esulted in identification of
high-grade copper mineralization of up to 7%
copper and good grades of silver contained
within porphyry copper mineralization and an
associated peripheral copper (lead-zinc)
skarn mineralization.
A total of 19 samples wer e collected along
partially exposed bedr ock, mainly along
creeks. Sample analytical result highlights include
0.10 grams/tonne gold, 26 grams/tonne
silver, 1.75% copper, 0.05% lead and 0.01%
zinc; 0.09 grams/tonne gold, 34 grams/tonne
silver, 0.94% copper, 0.08% lead and 0.01%
zinc; 0.05 grams/tonne gold, 22 grams/tonne
silver, 4.05% copper, 0.06% lead and 0.09%
zinc; 0.17 grams/tonne gold, 57 grams/tonne
silver, 7.33% copper, 0.17% lead and 0.10%
zinc; and 1.22 grams/tonne gold, 127
grams/tonne silver, 5.22% copper, 9.91% lead
and 15.4% zinc.
Numerous occurrences of copper gossans
have been observed within the alteration
zones associated with sheared and intensely
fractured rocks. Anomalous gold values of up
to 1.2 grams/tonne have also been detected
on one sample. On the periphery of the alteration
zone to the east malachite and extensive
chalcopyrite veins assaying up to 7%
copper have been identified. Float in str eam
drainages have been observed to contain
mainly chalcopyrite mineralization.
The second phase of the exploration pr ogram
will consist of trenching, sampling and
test pits. Terra Firma's CEO Brian Buchanan
says, “We are very pleased with the first sampling
results that have identified high grade
copper and good grades of silver mineralization,
within an associated peripheral copper,
lead-zinc skarn type mineralization.”
Terra Firma is a mineral exploration company
headquartered in V ancouver, BC, Canada.
The company’s objective is to develop a balanced
portfolio of properties through a combination
of grassroots prospecting, property
acquisitions and the formation of strategic relationships.
The company is investigating a
number of potential prospects in Sulawesi and
Sumatra, Indonesia.
Novienindo due diligence
VICTORY West Moly Limited has mobilized an
experienced team to undertake technical due
diligence at the Novienindo Copper Pr oject in
Sulawesi. The project is in a known porphyry
province and the geological setting is
favourable for exploration of both porphyry
copper-gold style mineralization and more discrete
zones of higher grade gold mineralization.
Fieldwork is being carried out under the supervision
of the company’s consulting geologist
Brett Gunter along with Dr Jonathan Nassey, a
copper porphyry expert with mor e than 20
years’ experience and familiarity with the
Novienindo project. The company has also
mobilized six senior geologists from its Malala
Molybdenum Project for the initial program.
The initial field work will consist of:
• Composition of a series of base maps for
the concession area, including topography
and geology, research surrounding mineral
occurrences and styles of mineralization.
• Compilation of a database of all work
completed in the ar ea since old Dutch
gold mining times, digitizing all available
data and determining target zones, mineralization
styles and compilation of a geological
data model on all digital data
available.
• Collecting a series of samples fr om each
sample site allocated, including rock chip

News 2_Layout 1 6/17/11 4:52 PM Page 35
float, rock chip outcrop, channel samples,
opening a number of old Dutch under -
ground tunnels for sampling and mapping,
collating and digitizing historical working
data,
• Locating old drill collars to confirm their
existence, compilation of a geological
model of available data and outlining of
any exploration target areas.
• Collecting samples fr om prospective
zones encountered in the field, generally
mapping the distribution of mineralization
to allow an assessment of the target size,
describing the geology of the area through
observations of float and outcr opping
lithologies.
Meanwhile, Victory West is in negotiations
with the Indonesian vendors of the USSU
Nickel Project in Sulawesi to vary the agreements
under which Victory West was to acquire
a majority stake in USSU.
A technical review has indicated the existence
of high grade sapr olite nickel ore and
broader limonite and saprolite mineralization,
however, it has become clear that in order to
raise the significant equity funding r equired
for the project, Victory West would have to
expand on its exploration activities to build a
substantial certified resource before committing
further investment.
As a result of this r eassessment, Victory
West has adopted what it considers to be a
prudent course of action in the best interests
of all parties by seeking to r enegotiate the
terms of the current agreement. It is expected
the parties will seek to secur e alternative
funding from project financiers to develop
USSU. PT PUL will continue to spend its own
capital to develop the project and has begun
pre-strip and development activities on an
area of identified high-grade mineralization.
Victory West will continue to assist PT PUL
through the provision of technical support.
Extra land at Belu project
KILLARA Resources has acquired an 80% interest
in an additional concession at its Belu
Manganese Project in West Timor, Indonesia.
The acquisition expands the total ar ea covered
by the Belu Manganese Project to 5934
hectares. Belu was originally acquir ed by
ASX-listed Winchester Resources but in
March the company changed its name to Killara
Resources.
Belu is about 35km east of Atambua, the
capital of Belu Regency in West Timor. Atam-
Indonesia
bua is about 20km south of the port of Atapupu.
The new CV SA Block A concession is
contiguous with the souther n block of the
Belu project and consolidates ownership of
the complete CV SA concession, which covers
an area of 2080 hectares. The acquisition
expands the total area cover by the Belu project
to 5934 hectares.
The project is in an ar ea of known manganese
mineralization and is pr edominantly
underlain by r ocks of the T ertiary aged
Bobonaro Complex, a unit consisting of a
clay matrix and blocks derived from older sequences.
Rocks of the Permian aged Bisane
Formation, which is dominated by dark grey
shale, with siltstone, calcareous sandstone,
slate and chloritized lava intercalations, occur
along the eastern edge of the project area.
The area has been subjected to negligible
modern exploration, with no drilling or modern
geophysics completed. A rock chip sampling
program has been completed in the area in the
past year by the local concession holder . Results
from this program, which consisted of 17
sample points, highlight the distribution of high
grade manganese mineralization, with values
ranging up to 52.3% manganese and eight of
the samples recording greater than 40%.
July/August 2011 | ASIA Miner | 35

News 2_Layout 1 6/17/11 4:52 PM Page 36
Laos
EPC AGREEMENT FOR ALUMINA REFINERY
SINO Australian Resources Co (SARCO) has
signed an agreement with China Non-Ferrous
Metal Industry’s Foreign Engineering & Construction
Co (NFC) for a futur e engineering,
procurement and construction (EPC) contract
covering a proposed alumina refinery in Laos
with annual capacity of 600,000 tonnes.
SARCO is the joint venture company owned
by Australian-listed Or d River Resour ces
(49%) and NFC (51%).
The agreement provides for NFC to deliver
the fully operational refinery to SARCO within
two years and provide technical assistance
and training after the refinery commences operation.
NFC will charge a fixed total EPC
price of US$1000/tonne of capacity and the
total contract value will be US$600 million.
The refinery would provide a value-adding
component to SARCO’ s Bolaven Plateau
bauxite deposits in souther n Laos. This key
development for the integrated pr oject fixes
competitive price and delivery time terms,
providing the highest level of cost certainty .
The fixed price turnkey arrangement can effectively
remove main technical risks and reduce
the overall risk of the project.
The agreement also provides for NFC to assist
SARCO with arranging pr oject financing from
Chinese banks. SARCO is currently negotiating
with financing banks familiar with such EPC
arrangements, such as China Minsheng Banking
Corporation (CMBC). Or d River expects
Chinese banks to finance SARCO at competitive
interest rates in light of the EPC cost certainty.
SARCO is continuing discussions with NFC
to turn the Memorandum of Understanding into
a binding contract. NFC is an EPC specialist
firm with in-house world leading alumina refinery
design, engineering, manufacturing and construction
capabilities. The company has a track
record of successful project delivery and has
designed and built 60% of China’ s entire alumina
refinery capacity or 26 million out of 43
million tonnes. In addition, NFC has preferential
long term financing support fr om China Eximbank,
China Development Bank and CMBC.
On May 26 Ord River reached a major milestone
in its development as a pr oducer with
CMBC stating in a letter of proposal to SARCO
that it intends to provide the necessary project
financing SARCO requires. The letter states, “It
is the bank’s intention to provide the necessary
project financing SARCO requires. ... We be-
36 | ASIA Miner | July/August 2011
lieve the project in Laos presents a significant
opportunity for SARCO and the Chinese alumina
market. ... We think a 70% lending ratio
can be applied to this project.”
Potential new discovery
ORE reserves at PanAust’s Phu Kham and
Ban Houayxai pr ojects have incr eased by
37% and 29% respectively while drilling at the
Long Chieng Track (LCT) prospect adjacent
to the operating Phu Kham copper-gold project
has revealed a potential new discovery.
The drilling intersected a zone of massive sulphide
mineralization and a zone of high-grade
gold mineralization.
On hole at LCT, which is about 6km northwest
of Phu Kham, intersected 18 metr es @
1.015 copper, 3.42 grams/tonne gold and
94.9 grams/tonne silver fr om 91 metres, including
6 metr es @ 2.96% copper , 9.40
grams/tonne gold and 273.4 grams/tonne silver
from 100 metres. Another hole intersected
5 metres from 212 metres @ 38.9 grams/tonne
gold and 10.8 grams/tonne silver.
The massive sulphide zone is beneath previously
identified gold oxide mineralization. T o
date six holes have been completed and drilling
will resume in the September quarter, following
the wet season. The program is aimed at testing
previous mineralization intersected in RC
drilling and to test the potential for the gold ‘cap’
mineralization to overlie copper-gold mineralization,
as was the case at Phu Kham.
Crushed ore is moved to the grinding circuit at PanAust’s Phu Kham project.
The total Phu Kham reserve tonnes have increased
by 37% and contained copper, gold
and silver have increased by 20%, 38% and
55% respectively when compared with the
previous 2010 estimate after being adjusted
for mining depletion during 2010. Ther e are
now 210 million tonnes @ 0.53% copper ,
0.24 grams/tonne gold and 2.1 grams/tonne
silver for 1.12 million tonnes of contained
copper, 1.63 million ounces of gold and 14
million ounces of silver.
The revised reserve estimate supports a
mine life of more than 14 years assuming that
the current annual ore processing rate of 12
million tonnes will increase to 16 million from
mid-2012 following implementation of an upgrade.
When compared with the 2010 r eserve,
this represents an increase in mine life
of more than 3.5 years and a r eduction in
strip ratio from 1.5:1 to 1.1:1.
The increase is largely due to additional mineralization
resulting from infill and resource extension
drilling together with a new r esource
model which incorporates improved gold and
silver grade estimation, and revised metallurgical
assumptions. Extensions to the known deposit
have been intersected in 2011 and,
subject to mine design work, should further extend
the mineral resource and ore reserve.
Total Ban Houayxai ore reserve tonnes have
increased by 29% and contained gold and
silver ounces have incr eased by 21% and
39% respectively.

News 2_Layout 1 6/17/11 4:52 PM Page 37
THE new Chatr ee North mill expansion at
Kingsgate Consolidated’s Chatree Gold Project
is now fully funded and r emains on
budget and schedule. The new plant is pr ojected
to ramp up to full annual capacity of 5
million tonnes by the end of December 2011.
Kingsgate’s Thai subsidiary, Akara Mining,
has executed a US$100 million baht denominated
syndicated loan facility that completes
its funding requirements for the expansion
and has also received final approvals to access
all mining areas at the Chatree project.
As well as the expansion work, Akara’s current
focus is to addr ess a wall failur e and
stress cracks that were accentuated by the
early onset of the wet season. The mining operations
will then have the flexibility to blend
high and low grade areas during the 2012 financial
year with the company expecting a
strong gold production performance in the
December 2011 half year.
Kingsgate’s managing dir ector Gavin
Thomas says the Chatree process plant has
been very reliable and has operated at over
98% availability since it started in its curr ent
configuration in 2003. “During May the plant
was abnormally impacted by a mechanical
breakdown when the SCATS crusher motor
failed. The rewound motor also failed upon installation
before a replacement motor was successfully
installed in late May. This impacted
gold production during May but by month-end
the plant capacity was back to normal levels.
“During this period of reduced capacity, and
with the low grade nature of current ore feed,
a SAG mill r eline scheduled for July was
brought forward by about six weeks. This
took nearly two days and together with the
impacts from the onset of the heaviest early
wet season since Chatree began operations
in 2000, further impacted production.
“A subsequent production review was undertaken
and concluded that the lost gold production
was not r ecoverable in June and, as a
consequence, production for the current financial
year is expected to be just under 80,000
ounces. Group gold production for the year is
now expected to be nearly 120,000 ounces.
Thailand
EPC AGREEMENT FOR ALUMINA REFINERY
The Chatree operations of Kingsgate Consolidated are in
central Thailand.
July/August 2011 | ASIA Miner | 37

News 3_Layout 1 6/17/11 4:53 PM Page 38
Cambodia
STOCK EXCHANGES FOR CAMBODIA AND LAOS
CAMBODIA is this month set to join the
growing list of Asian countries boasting stock
exchanges. The Cambodian exchange is due
to open its doors in July with thr ee stateowned
enterprises the first to go public.
There are a number of overseas entities operating
in the vastly under -explored kingdom
with most being juniors seeking to capitalize on
the opportunities that are undoubtedly present.
However, most local businesses operating in
the mining sector are family owned and operated,
as are most other businesses in Cambodia,
which means they will need to restructure
of they aim to list on the new exchange.
Securities and Exchange Commission of
Cambodia deputy director general Kao Thach
recently told the media: “Fr om the issue side,
they need to restructure, most of the companies
are family orientated, so they need to restructure
to have a board, and they need to convert from
the Cambodian accounting standard to IFOS,
which we (will) put into operation by end of this
year - that is a big challenge for them.”
Experts say that it may take some time for
the new exchange to attract foreign funds because
there are still some gaps in r egulations
while local companies will also require time to
adjust to the listing environment, including the
many requirements. This is also the case in
neighbouring Laos, wher e a new stock exchange
was launched earlier this year.
There is room for optimism with the new ventures,
as evidenced by exchanges in other
frontier economies of Indonesia and the Philippines
which have attracted investors looking to
tap into growth after making cautious starts.
Laos, which has enjoyed average GDP
growth of around 8% for the last four years,
launched its exchange with two listed companies
and a few in the pipeline. Experts say
it could hold some potential but it will take
some time for the market to be stur dy
enough to attract for inter national investors.
They also expect traditional sectors such as
agriculture, mining and the services sectors
to be drivers of the fledgling exchange.
DFDL Mekong’s country managing director
William Greenlee told media: “The rules at the
moment, they are quite extensive, (but) there
are some holes - you have the general framework
guidelines of what they have to do,
however there needs to be more detail added
which will come.
38 | ASIA Miner | July/August 2011
“The state-run companies that are going to
be listing in the futur e, you have a telecommunications
company that is rumoured to be
listing soon, and you have Lao Airlines, you
have a cement company - all ar e very good
assets as far as we know ... maybe in a year
or two, when large inter national companies
that have local entities may list, that is what I
am looking forward to.
“For a company to operate, it must have a
Lao entity, a subsidiary, so those are the entities
I think in the next couple years once they see
the exchange is operating well and that ther e
is transparency, there is certainty. We will then
see the exchange really pick up some steam.”
Positive Southern Gold hits
PRELIMINARY results from Southern Gold’s
most recent drill campaign show positive gold
and base metal hits. Initial assays of up to 5
metres @ 5.42 grams/tonne gold from 73 me-
Southern Gold’s tenements in eastern Cambodia.
tres and 3 metres @ 8.51 grams/tonne fr om
58 metres plus visual logging identifying economic
minerals within core show the company
has hit targeted mineralization zones.
There were 35 holes drilled during the
2010/2011 campaign at two of Souther n
Gold’s five prospect areas – Kratie South and
Memot. The company believes that its tenements
are prospective for intrusive r elate
shear and vein hosted gold and base metal
mineralization similar to that of the 600,000
ounce gold resource defined by Oz Minerals
in March 2010 at the Okvau project, which is
10km north of the Kratie South area.
The majority of work during this campaign
has been completed at the JOGMEC funded
Kratie South joint venture with 23 diamond
holes drilled at Gossan, Pr eak Khlong NW
and O’Khtung SE prospects for 3888 metres
of core. The aim was to test geochemical
targets generated in 2010.

News 3_Layout 1 6/17/11 4:53 PM Page 39
One of the two ball mills at Olympus Pacific’s new Phuoc Son processing plant. Daily starting capacity is 500 tonnes.
OLYMPUS Pacific’s new processing plant at
the Phuoc Son Gold project in central Vietnam
is ramping up to full capacity after commissioning
was completed during the second quarter.
The plant has two ball mills and daily starting
capacity is 500 tonnes.
The company acquired the Bong Mieu property
in 1997 and was granted exploration licences
at Phuoc Son, further to the west, in
1999. Today the company is producing gold at
its two processing plants. The Bong Mieu plant
was built in 2005 and is producing from openpit
and underground mines. The second processing
facility at Phuoc Son is processing ore
from two underground mines.
These mining operations ar e being developed
at the souther n end of the licence ar ea
and the project contains an open ended NI 43-
101 resource estimate. It has been producing
grades in excess of 15 grams/tonne gold and
ore has been pr ocessed at Bong Mieu until
completion of the new plant.
Phuoc Son is within the same plate-tectonic
and metallogenic setting as the nearby Sepon
copper-gold mine in Laos. The Phuoc Son
area is in general largely unexplored, with large
exploration upside potential. It boasts relatively
high-grade, quartz vein hosted mineralization
with high-grade ore-shoots plunging northwest
and occurring repetitively along strike.
The company expects to pr oduce 48,000
ounces from its Vietnam properties in 2011, increasing
to 72,000 in 2012, 105,000 in 2013,
136,000 in 2014 and 168,000 in 2015.
At Phuoc Son total cash costs per ounce
are $465, excluding the 15% r oyalty. As at
March 2011 there are measured and indicated
resources, which include proven and
probable reserves, of 619,341 tonnes @
9.39 grams/tonne for 186,942 ounces and
total inferred resource is 2.481 million tonnes
@ 6.01 grams/tonne for almost 480,000
ounces. The company has a potential target
range of 1-3 million ounces.
At the Bong Mieu open pit and underground
operations total cash costs per ounce in 2011
are $830 excluding the 3% r oyalty. There is a
3000 hectare licence area and the potential target
range is 1-3 million ounces. The total measured
and indicated resource is 3.2 million tonnes
@ 1.75 grams/tonne for 180,658 ounces and
the inferred resource is 4.729 million tonnes @
1.40 grams/tonne for 212,930 ounces.
Nat Son drilling starts
STRATEGIC Mining has started a 2500 metre
drilling campaign at its Nat Son gold property
in Hoa Binh Province, northern Vietnam. The
program aims to define gold r eserves and to
give exact locations where to begin mining operations.
The drilling using a Boart Longyear
LF 70 was due to begin earlier in the year but
was put back owing to unanticipated delays
at customs and the need to or der additional
parts for the rig, which is the first angular core
drill rig to be used in the province.
A geologist and drill crew arrived in Vietnam
in late May to begin the deep-hole program,
Vietnam
PHUOC SON GOLD PROJECT RAMPS UP
which the company aims to complete during
the current quarter. The site has pr oduced
surface samples with gold values as high as
47.3 grams/tonne.
The program follows a geologist’ s report
which recommended a detailed drill pr ogram
to test the subsurface potential. Given positive
test results, a further drilling program would be
initiated that would require another 12 months.
Nat Son is about 50km southwest of Hanoi
in the centre of the gold-rich Kim Boi deposit.
Exploration interest in the property is based
on the presence of gold-silver bearing quartzarsenopyrite
veins which are exposed at surface
and within rudimentary undergr ound
mine workings. The veins have been examined
and studied over a strike length of 4km.
Strategic is also continuing negotiations to
acquire an interest in the Dong Thanh gold
property. Samples are being tested by a well
qualified US metallurgist to determine the
cost and the best method to attain the highest
extraction level for the gold. The r esults
will assist in finalizing an agreement.
Drilling at a Strategic Mining property in Vietnam.
Strategic has recently appointed Ken Baird as
new CEO and director, replacing Todd Sterck,
who has been appointed to manage the V ietnam
operations on a fulltime basis. Ken Bair d
has more than 30 years diversified international
experience in the mining and exploration industry,
including stewardship of three Toronto Venture
Exchange exploration companies.
In 1995, he negotiated the financing and operating
lease to put the Edwards Gold Mine in
Ontario into production. This yielded more than
140,000 ounces in its first four years. His experience
also includes the financing and management
of several private gold and diamond
mines in Canada and South America, and
managing numerous exploration programs in
Central America and Canada.
July/August 2011 | ASIA Miner | 39

News 3_Layout 1 6/17/11 4:53 PM Page 40
Malaysia
MONUMENT CONSIDERS MENGAPUR PROJECT
MONUMENT Mining’s wholly-owned subsidiary
Monument Mengapur Sdn Bhd has entered an
agreement to acquire the Mengapur Polymetallic
Project in Pahang State. The project, which
is 130km from the company's Selinsing Gold
Project, has historic sulphide and oxide r esources
of copper, gold, silver and sulphur.
Monument Mengapur has entered a memorandum
of understanding (MoU) with Malaco
Mining Sdn Bhd and Malaco's wholly-owned
subsidiary Cermat Aman Sdn Bhd, both incorporated
in Malaysia, to acquire the project.
The acquisition remains subject to due diligence,
updating of historical resource and reserve
estimates, signing of a definitive sale and
purchase agreement, financing, boar d and
regulatory approvals and other conditions.
Upon completion of the acquisition, Monument
would hold a 70% pre-financing interest.
Mengapur was first discovered by a drilling
program carried out by the Geological Survey
of Malaysia. It is in central Malaysia, 12km from
a highway and 75km from the port of Kuantan.
Historical economic and resource estimates
on the project were completed and published
as a definitive feasibility study in October 1990.
The study contains 10 volumes of comprehensive
supporting documents, which r esulted
from a 10-year, 58,000 metre diamond
drilling program costing about US$40 million.
This was carried out by the Malaysian Mining
Corporation (MMC), a Malaysian gover nment-owned
corporation.
It shows a proven and probable sulphide
reserve of 64.8 million tonnes @ 8.67% sulphur,
0.27% copper, 0.21 grams/tonne gold
and 2.59 grams/tonne silver; a measured and
indicated oxide r esource of 21.272 million
tonnes @ 0.6% copper , 0.1 grams/tonne
gold and 26.76 grams/tonne silver; and a
measured and indicated sulphide resource of
203.137 million tonnes @ 7.222% sulphur ,
0.21% copper, 0.15 grams/tonne gold and
3.68 grams/tonne silver.
Monument considers this study to be r elevant
as it will be further r eviewed and upgraded
as part of the due diligence pr ogram,
however, it is an historic document completed
prior to the intr oduction of NI 43-101 standards
and should not be r elied upon. Monument
is not treating the historical estimate as
current mineral resources or mineral reserves
as those terms are defined in NI 43-101.
40 | ASIA Miner | July/August 2011
Drilling operations at Olympus Pacific’s Bau Gold Project in East Malaysia.
The study pr oposed construction of a
process facility, roaster and supporting infrastructure
and other supplemental processing
facilities. According to the study, the facilities
were expected to provide capacity for annual
treatment of 2.5 million tons for a mine life of
23 years. Other activities including further acquisitions
and area exploration could further
increase this mine life as the r esource was
found to be open in all directions.
In conjunction with the intended acquisition,
Monument has approached Snowden Mining
Industry Consultants to undertake a critical
review and update of the study. As a part of
this updated study, Snowden will review the
resource and reserve estimates. The acquisition
is expected to complement the pr esent
gold production, exploration and other activities
of the company in Peninsular Malaysia.
Positive Bau drilling
POSITIVE drilling results continue to enhance
the prospects of Olympus Pacific Minerals at
the Bau Gold Pr oject in East Malaysia. The
drilling is enabling the company to expand resources
and advance plans for achieving commercial
production status by 2014.
The most recent program has returned a
high value mineralized intercept at the Bekajang
prospect which assayed 40 metr es @
4.79 grams/tonne gold, including 20.5 metres
@ 6.91 grams/ tonne and 2.5 metr es @
18.64 grams/tonne.
Positive intercepts were also received from
the Tai Parit structure in the Taiton sector, including
3 metres @ 8.73 grams/tonne and
2.5 metres @ 18.64 grams/tonne in one hole;
12.32 metres @ 2.54 grams/tonne, including
4.02 metres @ 4.66 grams/tonne in another;
19.4 metres @ 1.60 grams/tonne, including
5.8 metres @ 2.37 grams/tonne; and 14.2
metres @ 1.50 grams/tonne, including 2.4
metres @ 5.97 grams/tonne.
A new major mineralized structure has also
been delineated in the T aiton sector. The
Taiton-B massive mangano-calcite vein has
now been mapped over 1.5km of strike
length. A 700 metre section of this vein has
historically been underground mined on 3
levels, but strike and depth extensions r emain
unexplored.
Assays of 74 vein outcrop rock chip samples
ranged from 0.16 to 62.0 grams/tonne gold,
with 48% reporting above 1.0 grams/tonne
and averaging 7.85 grams/tonne. Two scout
holes drilled into the souther n section of this
vein intersected mineralized vein/breccia intercepts
of up to 9.30m width.
Mineralization has been intersected in the
Juala sector where drilling is appr oaching a
major anomaly at depth. Drilling is following up
a prior intersection of promising gold-coppermolybdenum
porphyry-style mineralization
and auriferous contact skarn mineralization.
Olympus Pacific is carrying out detailed geological
mapping/sampling and drilling along
historically productive but r elatively unexplored
fault systems. Re-analysis and 3D
modelling of airborne DIGHEM and Magnetic
datasets is also revealing multiple exciting drill
targets, which are being prioritized for systematic
drilling in coming months.

News 3_Layout 1 6/17/11 4:53 PM Page 41
A sample preparation facility and fully accredited
fire-assay laboratory has been built on-site
and is now independently operated by SGS
Group. Full QAQC procedures are in place and
assay turnaround time is dramatically improved.
The Bau project has been independently assessed
as having NI 43-101 gold resources of:
560,000 indicated ounces and 1.89 million inferred
ounces. This resource includes several
different mineralization styles, in multiple deposits
that have to date been drilled only to
shallow depth and remain open to further expansion
through continuing exploration.
During coming months, Taiton sector stepout
and in-fill drilling will delineate the gr oss
mineralization geometry and gold grade distribution
within the main structures to depths
of 200-300 metres. It is expected that by the
fourth quarter, drilling will be adequately advanced
to allow estimation of expanded r esources
for input into definitive mining
feasibility studies during 2012.
LAMP feed in September
CONSTRUCTION of the L ynas Advanced
Materials Plant (LAMP) for the processing of
rare earths is on schedule with the first feed
to kiln on target for September. The basic en-
gineering design for phase two of the LAMP
has been completed and the tender process
for the engineering, construction, pr ocurement
and commissioning contract was car -
ried out during the second quarter.
The plant is being constructed in Gebeng Industrial
Estate, Kuantan, Malaysia, and Lynas
Corporation continues to work with Malaysian
authorities, including the Atomic Energy Licensing
Board and the Department of Environment,
to ensur e that ongoing pr oject
construction continues to meet all r equirements
and adheres to international standards.
Construction work on Lynas Corporation’s advanced materials plant in Malaysia.
Malaysia
Lynas has received all required approvals to
construct the LAMP, and is applying for all preoperation
and operation approvals.
The ASX-listed company has welcomed
the appointment by the Malaysian Gover nment
of an independent panel of inter national
experts to conduct a one-month
review of the health, safety and environmental
aspects of the LAMP to addr ess public
concern in Malaysia. The company remains
confident the review will reconfirm that the
plant is safe and presents no hazard to the
community or Lynas workers.
July/August 2011 | ASIA Miner | 41

News 3_Layout 1 6/17/11 4:53 PM Page 42
Papua New Guinea
INNOVATIVE DRILLING AND SAMPLING AT WOWO GAP
Logging core from Resource Mining’s Wowo Gap Nickel Laterite Project.
RESOURCE Mining has received high praise
for its innovative drilling and sampling exploration
at the Wowo Gap Nickel Laterite Project
in the country’s south east, about 200km
east of Port Moresby. Wowo Gap is a worldclass
prospect with an independent valuation
in 2009 listing it as worth Aus$168 million.
Australian-based Resource Mining has focused
its attention for the last few years on
developing this resource.
An independent inter national geological
consultancy company has completed the
due diligence study on the company’s procedures.
The site visit and study was under -
taken by GeoRes specifically to meet
Canadian NI 43-101 standards for technical
reporting of mineral projects.
The innovative approach to drilling, employment
and transport was taken by the company
because of the pr oject’s remote
mountainous location and desire to employ
local villagers.
Resource Mining’s managing director Warwick
Davies says “The aim of the due diligence
study was to obtain an independent third party
expert opinion on our pr ocesses, so that we
can meet international standards and gain access
to additional capital markets to raise more
funds to further develop this exciting project.
42 | ASIA Miner | July/August 2011
“There’s no roads where we’re operating
and transport is via a day’ s walking or helicopter.
Because we want to engage with
local landowners in a sustainable way we
have had to come up with new and innovative
solutions to exploring for nickel in a tropical
rainforest environment,” he says.
One of the innovations includes the use of
a custom-made man-portable core drilling rig
capable of much faster , higher quality and
more cost effective drilling using a largely unskilled
local workforce. The first stage of the
drill program has confirmed mineralization to
the north and south.
Warwick Davies says “The idea for an augerbased
drill rig actually came fr om technology
being used to dig fence posts in farming and
we’re delighted this innovation and others
have been independently verified as being well
founded, completely applicable to good exploration
of a nickel laterite-type deposit and
meeting high international standards.
“We want to set world-class standards for
this world class nickel deposit.”
Daulton gains Wewak prospect
NEVADA-based precious metals exploration
group Daulton Capital has pur chased
750,000 hectares of the gold-rich W ewak
prospect in the Prince Alexander ranges. The
acquisition is under a partnership with local
company South Pacific Connection and
makes up 80% of the site.
The prospect is in the world renowned copper-gold
porphyry system along the volcanic
belt known as the Pacific Rim of Fir e. Other
operators in the belt include Newmont Mining,
Barrick Gold, Goldmine, Xstrata and
Frontier Resources.
Targets are very high grade epithermal and
skarn gold, bulk mineable intrusive r elated
gold and porphyry copper-gold-molybdenum
deposits. Alluvial gold at the site is being
worked into streams from extensive uplifted
auriferous palaeogravels, including the flanks
of the Jurassic metamorphic and intrusive
core of the Prince Alexander mountains.
The area’s gold is accompanied by traces
of platinum with minor primary gold and base
metal mineralization associated with hydrothermally
altered intrusions. The mountain
range has a long history of mining by locals
for high distinction alluvial gold.
Daulton’s CEO Terry Fields says “W e are
looking forward to working with South Pacific
Connection to advance our strategically positioned
Wewak prospect and are anxious to
get our work program under way as quickly
as possible. Gold continues its upwar d
thrust, helping make our purchase potentially
valuable for our shareholders.”
“Our strategy focuses on developing a limited
risk portfolio of inter national exploration
and mining opportunities with r esponsible
and community-strengthening business best
practices. Papua New Guinea is of gr eat interest
to the company, because of its high
mineral content of gold, silver, platinum and
other minerals.”
Daulton Capital has also signed a Letter of
Intent with South Pacific Connection to acquire
a 64% working interest in the oil, gas and
liquid natural gas rights of a property in PNG.
“We believe this agreement will be in keeping
with Daulton’ s corporate philosophy .”
Terry Fields says. “Daulton Capital is being
presented with a great opportunity to participate
in a pr olific proven hydrocarbon
province, a Commonwealth country with significant
international Liquid Natural Gas interests
close to the Asian markets that is
relatively underexplored.”

News 3_Layout 1 6/17/11 4:53 PM Page 43
Mincor in joint venture deal
AUSTRALIAN nickel mining company Mincor
has signed a joint ventur e with a PNG-based
exploration company to secure an Aus$30 million
gold and copper portfolio. The agr eement
with Niuminco provides Mincor with a pipeline
of growth assets ranging from the advancedstage
Edie Creek gold project
as well as projects with
identified targets and promising
historical drill intersections
through to early stage
prospects with as-yet
untested potential.
Mincor will fund a variety
of exploration licences at
Edie Creek, May River ,
Bolobip and Kabuna as
part of the ventur e. The
company says this venture
represents the most significant
new business development
initiative undertaken by management
since its successful acquisition of the Otter
Juan nickel mine in 2007.
“We are delighted to partner with Niuminco
to pursue the exploration and development of
these mineral projects. Through this venture I
believe we now have some of the best
prospects in PNG, and this is elephant country
for world-class deposits. Mincor has the skills,
experience and funding to bring them to account,”
says managing director David Moore.
The Edie Cr eek gold pr oject is located in
goldfields about 200km north of Port Moresby.
It’s between the giant Hidden Valley and Wafi-
Golpu gold/copper deposits under development
by Morobe. The project covers an historic
gold producing area with minimal modern exploration.
Alluvial gold mining began at the site
in the 1920s with underground operations following,
but then ending during WWII. Structurally
controlled epithermal gold-silver
mineralization is widespread on the project’s
tenements. Mincor’s aim at Edie Creek is to delineate
a multi-million ounce gold resource.
The May River exploration licence is next to
Xstrata’s Frieda River copper/gold project and
historic drill intercepts there include 109 metres
@ 1.53 grams/tonne gold and 19 metr es @
11.4% copper and 2.7 grams/tonne gold. The
licence covers the same structural corridors of
copper, gold and base metal mineralization as
the Frieda deposit which is estimated to contain
a total metal content of 8.6 million tonnes
of copper and 14.3 million ounces of gold.
The remaining two exploration licences to be
funded by Mincor under the agreement, Bolobip
and Kabuna, are considered promising for
porphyry copper-gold mineralization. Bolobip
is close to the very large OK T edi porphyry
copper-gold mine. It’s in a remote area which
is difficult to access, however soil, r ock and
stream sediment sampling carried out since
The prospects involved in the joint venture between Mincor and Niuminco are close to major operating projects.
the 1960s has revealed two broad areas that
are anomalous in copper, gold and zinc.
The Kubuna licence is about 10km south of
the operating Tolokuma gold mine, with reasonable
access to infrastructur e. Historical
stream sediment sampling has yielded numerous
gold anomalies.
David Moore says “Both of these licence
areas are considered by Mincor to be earlystage
exploration prospects that lie within
key crustal corridors that elsewher e host
some of the world’s most valuable ore deposits.
They both contain known geochemical
anomalies and ar e considered highly
prospective for epithermal and mesothermal
gold mineralization and very large porphyry
copper-gold mineralization.”
Core tables at Marengo Mining’s Yandera project in Madang province.
Papau New Guinea
Yandera drilling ramps us
DRILLING at Marengo Mining’s Yandera copper,
molybdenum and gold project in Madang
province has ramped up with five rigs employed
on the deeps program as well as infill,
resource and geotechnical drilling.
There were 21 holes strategically placed at
Gremi in the central copper-molybdenumporphyry
system to give the
maximum measured resource
for the next r esource
estimate. One
deep hole was completed
at Imbruminda and a second
has been commenced
in the same zone,
with core logging r esults
showing good mineralization
down to 650 metres.
The resource drilling
program has focused on
extending data at the Dimbi and Imbruminda
zones, while the geotechnical pr ogram involved
a total of four holes investigating
waste rock dump possibilities in the Tai-Ayor
and Imbrum River valleys.
At the Gremi zone, best results from the infill
drilling include 15 metres from 294 metres @
0.32% copper, 272ppm molybdenum and
1.65 grams/tonne gold. Another hole at the
Gremi zone r evealed high molybdenum
grades of 485ppm from 228 metres to 368
metres with 0.22% copper, 0.77 grams/tonne
silver and 0.08 grams/tonne gold.
Best assay results for the deep drill hole at
Imbruminda include 99 metr es @ 0.34
grams/tonne gold and 63 metr es from 303
metres @ 0.42% copper , 0.17grams/tonne
July/August 2011 | ASIA Miner | 43

News 3_Layout 1 6/17/11 4:53 PM Page 44
Papua New Guinea
gold and 87ppm molybdenum. Best chip sampling
results from the Dimbi zone are 276 metres
@ 0.52% copper , 68ppm molybdenum
and 1.45 grams/tonne gold.
Marengo’s managing director Les Emery
says “A major focus of the last quarter has
been working towards the completion of the
definitive feasibility study (DFS). The r ecent
32% upgrade to the resource estimate and
further open pit mine optimization programs
will be fed into the financial model component
of the DFS.”
The company intends to enter into formal
agreements with its strategic Beijing-based
partner China Nonferr ous Metal Industry’s
Foreign Engineering and Construction (NFC)
for it to become the principal contractor for
construction of the Yandera project. Work on
the project is expected to begin in the first
half of 2012. The NFC group has either built
or is curr ently building major copper and
other base metal pr ojects in Iran, Zambia,
Mongolia and Kazakhstan.
Drilling at Nakru and Simuku
DRILLING to assess the economic mineral
potential at two of Coppermoly’s PNG projects
by Barrick Gold is under way . Barrick
has spent half of the agr eed Aus$20 million
on exploration including collation, validation
and integration of historic
data to plan for this year’ s
field program at the Nakru
and Simuku tenements. Coppermoly’s
three separate projects
cover 170sqkm on New
Britain Island.
The Simuku project is about
an hour’s drive from existing
infrastructure. The inferr ed
mineral resource at the site is
200 million tonnes grading
0.36% copper for 700,000
contained tonnes of copper,
12,000 tonnes of molybdenum,
12 tonnes of gold and
391 tonnes of silver . Three
drill holes have been completed
by Barrick at the pr oject
for a total of 1635.7
metres. This adds to the 31
historical drill holes at the site over a total of
7656.7 metres.
At Nayam, drilling intercepts of 93 metres
@ 0.59% copper include an upper zone of
secondary enrichment of 18 metr es @ 1%
copper from 8 metres depth.
44 | ASIA Miner | July/August 2011
Rock chip sampling has confirmed anomalous
grades of copper at the Kulu prospect,
which is 5km southeast of Simuku. Mor e
than 200 samples have shown average
grades of 0.11% copper which are consistent
with historical surface sampling and drilling
results. Reconnaissance mapping by Barrick
at Simuku has also helped to define structural
information to show the majority of structures
dip east-southeast.
The Nakru project is a four hour drive from
Kimbe. It contains a number of discrete massive
sulphide and br eccia related coppergold-zinc
systems. Drilling at Nakru-1 will test
for additional mineralization after the first drillhole
intersected 213 metres @ 0.92% copper
and 0.33 grams/tonne gold. Assay r esults
from drillholes at Nakru-1 show copper mineralization
over at least 500 metr es strike
length. It also shows a high grade silver vein
with an inter cept of 0.7 metr es @ 432
grams/tonne silver, 943ppm molybdenum
and 1340ppm niobium.
Two initial drill holes by Coppermoly at
Nakru-2 encountered a primary copper zone
intersecting 64 metres @ 0.59% copper between
141 metres and 205 metres. A high
grade silver vein similar to that at Nakru-1
was also intersected - 0.9 metr es @ 474
grams/tonne silver, 258ppm molybdenum
Coppermoly’s Nakru and Simuku tenements are on New Britain Island.
and 433ppm niobium. Additional geophysical
surveys have revealed other anomalies at the
Nakru-3 and Nakru-4 copper and gold
prospects. These remain untested by drilling
though, with surface rock chip samples returning
up to 1.2% copper.
Coppermoly’s managing dir ector Peter
Swiridiuk says “With this year’s drilling program,
we look forward to continuing results
to improve the value of the projects. At a time
where the industry is challenged to provide a
future supply of copper to a gr owing demand,
our copper projects are well placed for
their size, grade and location.”
Two other tenements are under application
by Coppermoly on New Britain and ar e not
part of the Barrick agreement. The Powell and
Fulleborn tenements cover almost 1500sqkm
on the southeast extent of the Kulu-Awit copper
belt and are pending a Warden’s hearing
by the PNG Mineral Resour ces Authority.
These tenements contain copper and gold
prospects with rock sample assay results including
10.7% and 2.91% copper and 20
grams/tonne gold. It’ s expected the tenements
will be granted later this year.
Crater Mountain drilling extended
A FURTHER 10,000 metre drill program at
the Nevera prospect of Gold Anomaly’s flagship
Crater Mountain pr oject is under way
with a second drill rig sour ced for the work.
This program is expected to be finished by
December and is aimed to confirming the
feasibility of expediting a shallow, small-scale
open pit operation to generate cashflow.
Crater Mountain is
an advanced exploration
project of
about 300sqkm in
the PNG Highlands.
The site is about
50km southwest of
Goroka and the
sealed Highlands
Highway which links
Goroka to the port at
Lae. Despite this relative
proximity to a
major populated
centre and infrastructure,
the Crater
Mountain area is
rugged and remote,
with previous exploration
hampered by
poor access and volcanic
ash deposits which obscure much of
the prospective geology.
Results for the company’s second drill hole
at the prospect have revealed an intersection
of 215 metres @ 1.46 grams/tonne gold
from 181 metres.

News 3_Layout 1 6/17/11 4:53 PM Page 45
Gold Anomaly’s exploration director Peter
Macnab says “Drilling results to date continue
to impress and support the possibility
that a multi-million ounce gold deposit exists
at Crater Mountain.
“The upside of the project is tremendous,
given that we have just started exploring the
area and have drill tested less than 10% of
The Crater Mountain project is in the New Guinea Orogen which hosts many large projects.
the anomalous gold zone at Nevera, which
accounts for less than 4% of the entir e
Crater Mountain tenement.”
Five drill holes have been completed by
Gold Anomaly for a total of 2537 metres. The
first drill hole, 100 metr es west of the latest
hole, returned intermittent gold grades up to
16 metres @ 1.92 grams/tonne gold. These
Papau New Guinea
grades are considered to be related to faultcontrolled
apophsyes of mineralized intrusions,
above the main-mineralized zone
extending to near the surface.
Gold grades in the second hole ar e higher
than the first, which indicate a closer proximity
to the interpr eted deep-seated intrusion-r elated
feeder zone. Executive chairman Gr eg
Starr says that reinforces the decision to drill
several 1000 metre holes in the next phase. “In
light of these very promising results, a follow up
drilling program incorporating a number of
deeper holes targeting the interpr eted feeder
zone is planned for the second half of 2011.”
Peter Macnab says “We continue to be encouraged
by the very positive drilling results at
Crater Mountain. The sheer length of mineralization
encountered with our drilling is consistent
with results from previous owners including
BHP. The results back up their assessment that
Nevera is a best prospectivity asset.”
“These results highlight the view that
Crater Mountain will ultimately be shown to
host a significant, high tonnage, low grade
gold deposit,” he said.
The company has recently raised Aus$3.6
million in a placement with these funds to be
used in the expanded drill program.
July/August 2011 | ASIA Miner | 45

News 3_Layout 1 6/17/11 4:53 PM Page 46
Central Asia
STANS COMPLETES RARE EARTHS PLANT PURCHASE
Stans Energy now has a processing plant to add to its rare earths properties in the Kyrgyz Republic.
STANS Energy has completed its US$5.5
million acquisition of a heavy rar e earth processing
facility and private rail terminal in the
Kyrgyz Republic. The facility pr ocessed rare
earth elements from the company’s nearby
Kutessay 2 open pit mine during the Soviet
era and is an integral part of the company’ s
plans to become a near term pr oducer of
heavy rare earth elements.
When known as the Kyrgyz Chemical Metallurgical
Plant it pr oduced 80% of the former
Soviet Union’s REE products. It has been r enamed
the Kashka REE plant and is the only
past producing REE plant outside of China. The
newly purchased rail terminal connects to the
Central Asian rail network connecting to Russia
and all Asian countries, and by ferry to Japan.
The plant is 140km by road from the Kyrgyz
capital Bishkek, with established power and a
rail line 43km away. The open pit mine has previously
produced all 15 REEs at purities of
99.99%. An independent technical r eport
completed in March 2011 included a JORCcompliant
mineral resource estimate of 42,980
tonnes RE2O3 at an average grade of 0.264%,
plus an additional inferr ed resource of 3560
tonnes at an average grade of 0.204%.
Stans has hir ed a former engineer who
worked with the Russian institutes that designed
and built the complex as its new dir ector general.
Leonid A Bulyonkov is recognized as a rare
metals and radioactive processing specialist.
Stans’ CEO Robert Mackay says, “The completion
of this transaction is a crucial step towards
achieving our goal of becoming a major
46 | ASIA Miner | July/August 2011
player in the heavy rare earth elements market.
We are fortunate to add Mr Bulyonkov to our
team as head of operations and we are confident
he will be able to use his extensive experience to
efficiently reestablish a rare earth production line
at the facility. He’s already initiated plans for design
and capacity upgrades to the plant.”
Stans will use advice fr om the Russian institutes
which initially designed the facility to
help with the redesign and refurbishment of
the Kashka REE plant. Robert Mackay says
they will cr eate a new and mor e efficient
source of rare earth supply and improve the
plant’s efficiency using new technologies.
When the facility was last in operation in
1991 it comprised four individual plants, one
Centerra Gold’s Kumtor project is in the Tien Shan belt in the Kyrgyz Republic.
of which has been decommissioned and
won’t be used in the re-design. Much of the
technology used in plant 1 is now redundant
as newer Sorption technology is now mor e
efficient and less damaging to the envir onment
as a method of r emoving radioactive
materials. The second plant will be r efurbished
and reassembled by Stans for separating
the mixed rar e earth solution. The
equipment for this plant has been stored at a
nearby location along with parts from plant 4.
Plant 3 separated the middle rare earth and
the heavy rare earth concentrates into final oxides,
metals, alloys and nitrate solutions. This
plant was never used to its full capacity by the
Soviet government and is in good working
condition. A feasibility study will determine
whether Stans will need to reassemble plant 4
to produce final oxides from plant 2, or whether
it will simply sell light rare earth concentrate directly
derived from the second plant.
Report says extend Kumtor
AN updated technical r eport for Centerra
Gold’s Kumtor project in the Kyrgyz Republic
recommends extending open pit and milling
operations to 2021. The new report includes
data from drilling exploration programs in the
first half of 2011 and is based on open-pit
mineral reserves. Holes were drilled at the
Kumtor central pit as well as the northeast
and southwest deposits, with regional drilling
completed at the Kumtor concession area at
the Petrov and Muzdusuu prospects.

News 3_Layout 1 6/17/11 4:53 PM Page 47
Eighteen holes were completed up until June
this year as part of the company’s $34 million
exploration program for 2011. Five of these drill
holes returned significant intercepts at section
38. One hole intersected 2.4 grams/tonne gold
over 11.9 metres and 8.6 grams/tonne gold
over 38.6 metr es. Three holes intersected
lower grades of mineralization on section 62,
including 2.2 grams/tonne over 51.2 metres.
Four underground exploration holes wer e
also completed to test for extensions of the
stock work zone below the pit. One of these
holes intersected low grade mineralization over
58 metres including 2.7 grams/tonne gold over
4.1 metres and 2.1 grams/tonne gold over 8.7
metres. Further drilling to test the strike and
depth extensions of the SB zone is continuing.
Kumtor is the largest open pit gold mine
operating in Central Asia by a wester nbased
company. It is about 350km southeast
of the Kyrgyz capital Bishkek and about
60km north of the Chinese border. The deposit
is in the T ien Shan Metallogenic belt
which traverses 1500km thr ough Central
Asia. Kumtor produced 678,941 ounces of
gold in 2010 and is expected to produce up
to 600,000 ounces this year.
Consolidated gold production for the first
quarter of 2011 totaled 180,716 ounces,
which is lower than the 211,039 ounces r eported
in the first quarter of 2010. However ,
gold production exceeded plans as a result of
higher than anticipated inventory accumulated
at the end of the fourth quarter of 2010 which
was drawn down in the first 2011 quarter.
Kumtor also pr ocessed higher than expected
gold grade thr ough the mill with its
associated higher than anticipated metallurgical
recovery in the quarter. A 5% reduction
in mill throughput during this quarter was the
result of a four-day shut-down to replace the
SAG mill feed end liners and the discharge
trunnion liners.
Centerra’s CEO Steve Lang says “I am
pleased with our first quarter operational and
financial results, we ar e on track with our
2011 plan and continue to enjoy the benefits
of the rising gold price.”
Karchiga resource boosted
INFILL drilling results for an ongoing definitive
feasibility study at Orsu Metals’ Karchiga Copper
Project in northeast Kazakhstan has seen
the company increase the indicated mineral resource
to 7.1 million tonnes @ 1.85% copper
for 131,860 tonnes of contained copper metal.
Central Asia
This updated estimate is for the sulphide min -
eralization in the central and northeast lodes of
the deposit. The inferred estimate is now 1.2
million tonnes of ore @ 1.68% copper containing
19,860 tonnes of copper metal.
The project is covered by a 47.3sqkm licence
along the Rudny Altai polymetallic belt.
The volcanogenic massive sulphide style of
mineralization at Karchiga is hosted along the
contacts between the shallow dipping alternating
amphibolite and quartz mica schist
units. The two lodes have a strike length in
excess of 1km and have been intersected
down to depths of 200 metres.
UK-based consultants SRK interpreted and
modelled a series of narr ow mineralized
lenses with varying dips in the central and
north east lodes using a nominal 0.1% copper
cut off for the indicated mineral resource
estimate. The previous estimate was completed
with a 0.34% copper cut of f grade.
The SRK study was also done without dilution
and loss while the 2010 study allowed for
a 5% mining loss and 5% mining dilution.
Orsu’s exploration dir ector Dr Alexander
Yakubchuk says “While the 2011 and 2010
mineral resource estimates and study were prepared
using two different methodologies, they
July/August 2011 | ASIA Miner | 47

News 3_Layout 1 6/17/11 4:53 PM Page 48
Central Asia
have revealed comparable r esults which
demonstrate once again the robustness of the
Karchiga mineral resource. We are pleased they
have revealed an increase in both the resource
tonnage and contained copper metal which will
increase the life of the mine to 11 years.”
Metallurgical test work staged in thr ee
phases on 1.5 tonnes of samples fr om drill
holes was completed earlier this year . The
work included froth flotation and heap leaching
where a significantly improved copper recovery
into concentrate was discovered. The figures
for the main composite show an increase
from 91.05% to 95.76% for copper recovery.
In addition, the gold grade in the main composite
concentrate was 1.57 grams/tonne
gold with 50.44% recovery. Results from the
heap leaching test work demonstrate the efficiency
of bacterial leaching for the ore found
at Karchiga. After 100 days, the central lode
sample had achieved 68% copper recovery.
New Dombraly zones
DRILLING at Alhambra Resources’ Dombraly
resource in Kazakhstan has r evealed four
new zones of mineralization as well as significant
gold in low-grade stockpiles and the
open pit backfill of the former mine. Dombraly
is part of the company’s 9800sqkm Uzboy licence
within the central Asia-Chinese Altayshan
gold belt in norther n Kazakhstan, a
rapidly emerging significant gold tr end. The
former Soviet open pit gold mine is about
60km north of the city of Stepnogorsk which
is the company’s Kazakhstan operating base.
The new zones of gold mineralization south
of the Dombraly open pit have incr eased the
strike length of the overall zone by 300 metres.
Diamond drill r esults show mineralization is
mainly oxide with average gold grades ranging
The Dombraly and Shirotnaia deposits are part of Alhambra’s Uzboy project.
48 | ASIA Miner | July/August 2011
from 0.45 to 3.95 grams/tonne gold. Ther e’s
also a high peak sulphide gold grade of 40.50
grams/tonne over 1 metre. One new zone located
north of the mine is estimated to be
more than 100 metres long and between 9 and
14 metres wide. The mineralization in this zone
is sulphide with average gold grades of between
0.48 grams/tonne gold over 10 metres
and 4.08 grams/tonne gold over 4.3 metres.
There were 37 RC drill holes between 40
and 57 metres deep that intersected significant
gold mineralization in both the low grade
stockpile and the material used to back fill the
open pit, with results ranging from less than
0.1 to 19.3 grams/tonne gold. This material
was generated by a mining company in the
mid-1980s and was drilled to validate and reclassify
the historic r eserve data. The gold
grades in the stockpile are not evenly distributed,
however the back fill has a mor e homogenous
distribution of gold concentration.
The drilling program covered 8511 metres
from core and non-core drill holes.
Alhambra’s CEO John Komarnicki says the
discovery of the new zones of gold mineralization
has exciting implications for the Dombraly
resource. “This was one of our 2010 priority
exploration targets and will continue to be a
priority for 2011. The positive r esults should
allow us to re-classify the historical Soviet resource
and reserve data into a compliant NI
43-101 resource estimate for Dombraly.”
The company is also completing follow up
core drilling at its Shir otnaia gold pr oject
within the Uzboy licence. Analyses fr om a
drilling program at the site in 2010 have r evealed
that its three zones of gold mineralization
are the northern extension of the Aksu
and Quartzite Hills deposits which host an estimated
15 million ounces of gold.
Gedabek drilling program
A DRILLING pr ogram of 17,500 metr es is
under way at Anglo Asian mining’ s flagship
Gedabek copper and gold mine in Azerbaijan
Republic. The program aims to increase the
confidence of the resource estimate and to
increase the resource base. The defined exploration
strategy at Gedabek is aimed at increasing
the life of the r esource which
currently stands at 6 years, with a target production
in excess of 300,000 ounces of gold.
Gedabek is 55km from Azerbaijan’s second
largest city Ganja and began operation in
May 2009. It is in the company’s 1062sqkm
contract area along the Tethyan tectonic belt,
which is one of the world’s significant copper
and gold bearing areas. This area is one of
the company’s priorities for exploration in the
region as it works to establish itself as a leading
gold producer in Central Asia.
Gold production for the first quarter of 2011
is already 3% higher than during the same period
in 2010, despite extreme winter conditions
resulting in the leaching pr ocess becoming
sluggish. The gold grade for this period, however,
has decr eased to 3.32 grams/tonne
compared to 4.79 grams/tonne last year . In
2010 the company exceeded its forecast gold
production by 11% with a total of 67,267
ounces of gold produced at an average cash
operating cost of US$358 per ounce.
Copper production began in February 2010
with a total of 182.5 tonnes of copper ,
46,940 ounces of silver and 833 ounces of
gold produced. Copper and silver r ecovery
from the operation has impr oved during the
first quarter in 2011 with copper concentrate
produced containing 104 tonnes of copper
and 24,499 ounces of silver.
Anglo Asian’s chief executive Reza V aziri
says these encouraging results are proof the
company is on target to becoming a debtfree,
profitable gold producer by 2012. He
says the portfolio of highly pr ospective advanced
projects could also be developed into
new revenue streams.
Exploration of the company’s portfolio of
gold and copper assets in Azerbaijan remains
a priority in its gr owth strategy. Anglo Asian
has two other grassroots contract areas near
Gedabek which have the potential to r eplicate
its underground mining success. A diamond
drilling program at the Gosha contract
area is already being planned, while the Or -
dubad area contains numerous targets within
a 5km radius which warrant further exploration
that has been planned for early 2012.

News 3_Layout 1 6/17/11 4:53 PM Page 49
SAIL will seek bids fr om global mining firms
to operate a number of its ir on ore and coal
mines in India in order to introduce the latest
mining techniques with the least amount of
waste and the best environmental practices.
The move will help SAIL get the most possible
from its mineral deposits, ther efore
strengthening its raw material security.
SAIL will initially seek tenders for its Rowghat
iron ore project and the recently allotted Tasara
high-grade coal blocks, and is also talking to
big players for the Chiria iron ore project.
Although the company has not named potential
partners, Indian sour ces say big
names, including Rio Tinto and BHP Billiton,
could be expected to bid for the projects.
Rowghat has 500 million tonnes of highgrade
iron ore reserves and SAIL plans to initially
tap up to 5 million tonnes annually for
supply to the Bhilai Steel Plant. The company
hopes to increase production up to 15 million
tonnes annually in the future.
SAIL plans to mine about 5-7 million tonnes
of high-grade iron ore annually from the three
blocks at Chiria, which hold about 1.2 billion
tonnes of r eserves. A two-phase Rs 3500crore
plan to expand mining and set up a beneficiation
plant in the area is being proposed.
The company’s chairman CS V erma says
“We need about 39 million tonnes of ir on ore
once modernization is over as against a current
requirement of 23.2 million tonnes. Consequently,
besides ore, we are planning to use
the fines from our mining projects to generate
about 10 million tonnes of iron ore pellets that
will be used to meet ore requirements.”
SAIL plans to set up a 4 million tonne pelletization
plant near IISCO’s Gua mines and
three pelletization plants of 2 million tonnes
annual capacity at other sites.
CS Verma says “We also need to secur e
coal requirements … right now we sour ce
about 3.5 million tonnes of coal fr om within
the country and 10.5 million tonnes via imports.”
For this reason it intends to appoint
global miners to operate its T asara mines,
where quality is supposed to be better than
other indigenous sources it has.
“We have also signed a deal with Indonesia
promising to set up a 3 million tonne steel
plant in exchange for high quality coking coal
mine there and are in talks for a similar deal
in Mongolia.”
New managing director for India
PARSONS Brinckerhoff has appointed infrastructure
expert Allen Gale as managing director
for the company in India. He is based
in the company’s New Delhi office.
Parsons Brinckerhoff’s Australia-Pacific, Asia
and Southern Africa chief operating oficer and
president Stuart Glenn says Allen Gale has the
depth of experience required to drive strong
growth. “Mr Gale has more than 40 years’ experience
in project delivery, including senior
roles in India, China, Hong Kong, Brunei, Pakistan,
Malaysia, Singapore, Fiji and the USA.
He also has the integrity and experience to
excel in leading large consulting teams on a diverse
range of infrastructure projects in India.
“In addition to his management and pr oject
delivery expertise, Mr Gale has an acute understanding
of client needs and how to meet them.
I am confident in his capacity to oversee the
sustainable growth of our people and operations
throughout India. Mr Gale will work closely
with the Balfour Beatty Group and its newly-appointed
India country manager Mike Shaw.”
Allen Gale says he sees further opportunities
for Parsons Brinckerhoff to contribute delivery
of high quality infrastructure required for India’s
emergence as a world power . “Parsons
Brinckerhoff is already at work on signatur e
projects across the country. These include the
Delhi International Airport, the Kolkata Airport,
metro projects for Delhi, Mumbai, Chennai,
and the Abir thermal power station.”
India
SAIL LOOKS TO GLOBAL MINING FIRMS
Parsons Brinckerhoff managing director for India Allen Gale.
Prior to joining Parsons Brinckerhof f, Allen
Gale was managing director for SMEC India
and regional manager India for SMEC International.
Before this role, he held positions including
general manager – technical services
for Goulburn Valley Water, regional manager
for URS in Western Australia, and group principal
and environmental manager for SKM.
The company has also appointed Paul Turney
as new general manager for power in
Australia and the Asia-Pacific r egion. Stuart
Glenn says Paul Turney is well-equipped to
champion the company’ s next phase of
growth in this sector. “Mr Turney has an impressive
background of 25 years in senior
management positions. In his car eer he has
also created successful new businesses in
power generation, oil and gas and operations
and maintenance. This experience spans
work in many countries and crosses diverse
sectors of the industry – most recently in renewable
energy in particular.” He is based in
the Singapore office.
Parsons Brinckerhoff is a leading planning,
environment and infrastructure consultancy
with more than 14,000 staff based in offices
across six continents. It is part of Balfour
Beatty, the international infrastructure group
operating in professional services, construction
services, support services and infrastructure
investments.
Firms eye off Afghanistan
A CONSORTIUM of 15 Indian steel and mining
companies may be formed to invest in
iron ore mines in Afghanistan, including the
large Hajigak deposits in Bamiyan pr ovince,
130km west of the Afghan capital Kabul.
Steel Authority of India Ltd (SAIL) said in a
press release issued after a recent meeting of
the companies: “Indian contenders for the Hajigak
deposits discussed the major concer ns
and identified the issues to be discussed with
the Afghan and Indian governments.”
SAIL chairman CS Verma says the group has
until August to submit bids, and that SAIL is interested
in building a steel plant as well. “According
to estimates, the mine should be good
to produce up to 1 billion tonnes of steel.”
The Hajigak deposits hold 1.3 billion tonnes
of iron ore. Afghanistan’s Minister for Mines
Wahidullah Shahrani pitched these mines as an
investment destination during a visit to India.
July/August 2011 | ASIA Miner | 49

News 3_Layout 1 6/17/11 4:53 PM Page 50
South Pacific
STANS COMPLETES RARE EARTHS PLANT PURCHASE
Bonanza trenching grades at Tuvatu
LION One Metals has reported bonanza grade
gold results from the first 1200 metr es of
trenching on its Tuvatu Gold Project on the Fijian
island of Viti Levu. A selected sample returned
an impressive 1715 grams/tonne gold and significant
intervals included 8.7 grams/tonne
across 4.8 metres from the surface expression
of the north-west striking Tuvatu Lode.
Strong gold prices have paved the way for
Lion One’s testing of br oad zones of low
grade mineralization which have the potential
for surface mining methods.
Canada-based Lion One embarked on the
trenching program in mid-January this year .
Five samples fr om the tr enching included
grades over 100 grams/tonne gold, including
210 grams/tonne gold acr oss 0.05 metr es,
188 grams/tonne gold across 0.87 metres and
188 grams/tonne gold across 0.70 metres. Of
the 187 rock samples taken from the trenching,
15 graded between 0.4 grams/tonne gold
and 1 gram/tonne gold, while 22 samples
graded over 10 grams/tonne gold.
Geologists have now embarked on a test
program to determine whether br oad zones
of lower grade, near surface gold mineralization
exist in the hanging and foot walls of the
many high grade gold veins either exposed
on surface or in historic drill holes.
In the past, former operators needed to
concentrate on the underground exploitation
of the high grade, narr ow vein mineral r esource,
with an average grade in excess of
8 grams/tonne gold.
50 | ASIA Miner | July/August 2011
In addition to trenching, surface mapping and
sampling, prospecting and stream sediment
sampling programs are ongoing. A first-phase
diamond drill program, designed to test several
of the recently identified, near-surface targets,
is scheduled to commence soon.
Seventy-nine of the rock samples from the
recent trenching program were from the 135
metre-long, Bench 5 W est, where a br oad
zone of alteration and mineralization up to 60
metres wide is exposed. This structural corridor
consists of mineralized veins and veinlets within
a weathered and hydrothermally altered, quartz
monzonite host. Mineralization predominately
consists of black, crystalline quartz, calcite,
chlorite, pyrite and chalcopyrite.
Intervals grading 1.5 grams/tonne gold across
20 metres, 1.19 grams/tonne gold acr oss 11
metres, 0.66 grams/tonne gold across 7.5 metres
and 0.68 grams/tonne gold across 3.8 metres
were exposed. Individual samples graded
up to 24.3 grams/tonne gold across 0.33 metres.
These results give a strong indication of the
existence of a near surface, lower grade, oxide
envelope surrounding a high grade core.
Technical staff observations can be confirmed
once the planned core re-logging and
re-sampling program has been completed,
covering selected portions of the existing
core from previous drilling stored on the site.
The incorporation of a significant volume of
lower grade material is expected to significantly
increase the mineral resource while enhancing
the open pit viability of the project.
Gold Ridge producing again
ALLIED Gold has re-opened the Gold Ridge
gold mine on Guadalcanal, Solomon Islands,
after investing $150 million to r efurbish and
redevelop the mine which will annually pr oduce
120,000 ounces of gold. First gold was
poured in March, with 1563 ounces yielded
during that month and production now being
ramped up to full capacity.
The official re-opening in March was attended
by local political, community and
landowner leaders, and it is expected that
Gold Ridge will account for one quarter of
Solomon Islands’ gr oss national pr oduct.
The project has 600 mining and operational
employees with 85% being residents of the
Solomon Islands.
Allied’s executive chairman Mark Caruso said
the company had delivered the redevelopment
ahead of time and on budget, with no fatality
or serious injury to any employees. “A year ago,
at a ceremony to mark the start of the redevelopment,
Allied Gold undertook to the people
of the Solomon Islands and to our shar eholders
to rebuild and refurbish Gold Ridge.”
Mark Caruso also said that Allied’ s agreements
and commitments, including the pr ovision
of local jobs, had been honoured. “And we
hope our success in redeveloping Gold Ridge
will help restore the reputation of the Solomons
and send a clear message to the inter national
investment world that the Solomon Islands is
open for business and welcomes and supports
investments in the mining industry.
“The challenge for us all now is to build on
the momentum of this positive start. With the
success and new wealth that will be created
comes responsibility to manage and invest
wisely for the next generation, and that must
now be the focus for the Solomons.”
Allied Gold acquired Gold Ridge in 2009-
10 when it took over T oronto-listed Australian
Solomons Gold. Gold Ridge has not
operated since 2000, when it was closed
amidst the Solomons’ political and social
upheaval of that time. It is expected to yield
an average of 120,000 ounces annually for
a minimum of 10 years.
Relocation of villages affected by mining activities
is continuing, with 95 new homes
handed over and 329 residents resettled from
the mining area. At a reconciliation ceremony
which was held as a precursor to the re-open-

News 3_Layout 1 6/17/11 4:53 PM Page 51
ing, the company assur ed landowners and
local residents that it is committed to the healing
process after the ethnic violence that br ought
the country to a standstill 10 years ago.
High grade WKP results
GLASS Earth Gold has confirmed significant
high grade gold mineralization following the
completion of two more drill holes on its WKP
West gold-silver project near Waihi, on New
Zealand’s North Island. Results fr om one diamond
hole confirm previous finds of significant
intersections of gold mineralization consistently
greater than 150 metr es, with narrow highgrade
zones in the 1-2 ounce gold range.
The hole returned 152.4 metres from 129
metres @ 1.16 grams/tonne gold and 2.2
grams/tonne silver, including 1.4 metres from
181.4 metres @ 30.7 grams/tonne gold and
77.7 grams/tonne silver, and 1 metr e from
197.8 metres @ 7.61 grams/tonne gold and
11.4 grams/tonne silver.
The West prospect is a joint ventur e with
Newmont Mining, of which Newmont has a
65% holding and Glass Earth 35%.
Glass Earth Gold president and CEO Simon
Henderson said that the success of last year’s
drilling on three preceding holes demanded fur-
ther examination. “Both Newmont and Glass
Earth have been very keen to pr ess forward
with additional drilling and we are confident that
this exploration phase will provide further substantial
insight into the characteristics of WKP
West and the overall WKP prospect.”
Glass Earth is one of the largest New
Zealand-based gold exploration companies,
A section of the plant at the Gold Ridge project of Allied Gold on the Solomon Islands.
South Pacific
and is exploring across the North and South
islands. Efforts on the North Island ar e focused
on large epithermal gold systems in
the Hauraki/Central volcanic region, which is
host to Newmont’s 10 million-ounce W aihi
Gold Mine. Waihi is 5km fr om the Golden
Cross deposit, which pr oduced 634,000
ounces of gold in the 1990s.
July/August 2011 | ASIA Miner | 51

News 3_Layout 1 6/17/11 4:53 PM Page 52
Australia
MT CORNELL SURVEYS CONFIRM ANOMALIES
STRONG, legitimate bedrock conductors consistent
with the pr esence of major sulphide
anomalies have been confirmed at Global
Nickel’s Mt Cornell gold and nickel pr oject in
Western Australia. The project is at the northern
end of the Jutson Rocks Greenstone Belt
about 125km northeast of Laverton.
Follow-up ground-based fixed loop exploration
has been completed with a total of 10
FLTEM surveys consisting of 57 survey lines
and 36.7 line kilometres of coverage. These
surveys have further defined the eight air -
borne electromagnetic VTEM anomalies
identified in December 2010. The gr oundbased
surveys confirmed the bedr ock conductors
and enabled constrained modeling of
the depth/location/orientation of each
bedrock source and also the true strength or
conductance of each target.
Four of the eight anomalies have been assessed
with three of them located on gabbr o
and pyroxenite, one of which is spatially associated
with a copper-in-soil anomaly located
within the keelof plunging syncline in gabbr o.
The fourth anomaly is in a sand covered area.
These anomalies ar e being r efined with the
input of the company’s geophysicist to optimize
drill hole design. Drilling will begin shortly,
once clearance processes are complete.
Global Nickel’s executive director Andrew
Mortimer says the overall results are very encouraging.
The eastern targets have modeled
conductance levels of above 10,000s.
Bedrock conductors at two other targets ap-
A view over EMA’s Mulga Rock uranium project in Western Australia.
52 | ASIA Miner | July/August 2011
pear to show good corr elation with anomalous
copper in historic soil and auger sampling.
Historic rock chip sampling results from
Mt Cornell include 8.4 grams/tonne gold,
3.2% copper, 1.31 grams/tonne platinum
and 0.769 grams/tonne palladium.
In addition to the drilling targets generated
by the geophysical survey, three geochemical
programs are under way. Two conventional
soil sampling programs will extend and infill
two significant copper-in-soil anomalies in the
Mt Cornell area. The soil grids of 300 samples
each will cover areas of about 2.5 x 1.5km on
400 x 100 metre sample spacing.
Detailed analysis of geochemical data collected
by Global Nickel and previous explorers
has highlighted a pr onounced gold-anomalous
trend through the centre of the Greenstone
belt which is traceable for mor e than
30km as discrete anomalies variously determined
from soil, auger and vacuum programs.
This ‘gold corridor’ is consider ed an exciting
target for detailed exploration.
The company is also completing FL TEM
surveying at the nearby Mt V enn project,
which was delayed earlier this year by wet
weather. This is aimed at providing further refinement
to the five priority VTEM anomalies
delineated in December 2010.
Mulga Rock mining applications
IN a major milestone for W estern Australia’s
largest independent uranium developer, Energy
and Minerals Australia (EMA) has lodged
two mining lease applications for its Mulga
Rock deposit. This step secur es the company’s
progress towards commencing production
at the site in 2014.
The Mulga Rock deposit is about 770km
east-northeast of Perth and about 240km
northeast of Kalgoorlie-Boulder , which
means there is good access to all r equired
infrastructure for development. The deposit
is within a small sedimentary basin known
as the Narnoo Basin.
There are three separate deposits named
Ambassador, Emperor and Shogun making
up one of Australia’ s largest undeveloped
uranium resources. The deposits also show
evidence of nickel, cobalt, rar e earth elements,
scandium, vanadium, copper , zinc
and gold. EMA says some of these commodities
may be produced as by-products to
uranium production from open-pit mining.
Uranium production by insitu r ecovery from
sandstone-hosted mineralization pr esent at
botVBh the Mulga Rock deposit and elsewhere
is also anticipated. Results from a scoping study
last year indicated the project has a minimum 12
year life with 1200 tonnes produced annually.
EMA’s managing director Chris Davis says
unusually high rainfall in the first quarter of
2011 occurred at the project area. Another
delay resulted from a high court appeal by
Yarri Mining to overturn the validity of the exploration
licences for the Mulga Rocks Deposit
but this was refused in April, paving the
way for exploration activities to continue.

News 3_Layout 1 6/17/11 4:53 PM Page 53
Historic drill hole data has been r e-logged to expand the ar ea of
known mineralization which was described in October 2010 as between
7600 to 13,000 tonnes of sandstone-hosted uranium mineralization
at grades of 240 to 650ppm. Results fr om 15 new drill holes
have been added to the data from 149 historic holes.
Analysis of 5000 historic duricrust geochemical samples obtained
by vacuum drill was carried out using a portable XRF tool to provide
leveled base metals values to account for variations in the concentrations
of specific major elements known to scavenge heavy metals
in regolith. Limited chemical analysis of these samples has shown that
they can provide useful vectors to uranium and base metals mineralization.
Chris Davis says field work and budgeting is ongoing as the
company moves forward with its pre-feasibility study.
CST revises Lady Annie plans
PLANS at CST’s flagship Lady Annie copper cathode project have been
revised, after unusually high rainfall earlier this year delayed mining operations.
The Asia Pacific’s newest copper mining company’s Aus$28 million
exploration program for 2011 is expected to reveal a higher resource estimate
at the pr oject about 100km north of Mount Isa in northwest
Queensland. Updated overall resource estimates for the nearby Mount
Clarke, Flying Horse Anthill, McLeod Hill and Swagman copper prospects
in December 2010 saw a 34% increase over previous estimates.
Copper outcropping and rubble at CST’s Lady Annie project in Queensland.
The revised mining plans include reversing the mix of tonnages to
mine the highest grade ore zones first in order to build up the copper
inventory in the heaps. The wet weather in February and March forced
more overburden removal and mining at higher bench levels wher e
the ore grade was lower than ore zones deeper in the pits.
There are more than 82,000 tonnes of contained copper in the transitional
ore beneath the existing Mount Clarke, Flying Horse and Lady
Annie pit shells. Transition ore is a mixture of oxide and sulphide or e
laying between the oxide and sulphide mineralization of those deposits.
CST has begun a metallurgical drilling pr ogram to get samples
needed for leaching metallurgical test work on these transitional
zones, with preliminary results expected by September. The company’s
CEO Damon Barber says those results will help CST to understand
the economics of leaching these or es. Five drill rigs are being
used at the site and an additional Rotary Air Blast (RAB) drill has just
arrived to help with the program.
Australia
July/August 2011 | ASIA Miner | 53

News 3_Layout 1 6/17/11 4:53 PM Page 54
Australia
Drilling at Lady Annie is targeting oxide r esource
extensions and delineation of sulphide
ore. Eight new staff have been recruited to
take the exploration team to a total of 17 geologists
and 18 field assistants who’ll undertake
the large number of drilling targets.
Total copper cathode production in the five
months ending March 31 was 5907 tonnes,
which is on track to meeting the company’ s
2011 target of 24,000-25,000 tonnes. The
company’s overall ramp up schedule is to annually
see up to 30,000 tonnes of copper cathode
production.
An automatic cathode stripping machine
has arrived on site and should be commissioned
by July. All 100 cells in the number
one cellhouse are fully operational and the refurbishment
of the cathode blanks for the 58
cells in cellhouse number two is now completed
for commissioning in July. This second
cellhouse will expand the plating capacity of
the Lady Annie operation.
中科矿业修改了Lady Annie项目的计划
中科矿业集团有限公司的旗舰项目Lady
Annie电解铜项目的计划由于今年早些时候
不寻常的庞大降雨量推迟了采矿运营而被修
改。这个亚太地区最新的铜矿公司2011年
投资2800万澳元的勘探活动计划预计将为
该项目披露一个较高的矿产资源量估计,该
项目位于昆士兰州西北部的Isa山脉北部大
约100米处。附近的Mount Clarke、Flying
Horse Anthill、McLeod Hill 和Swagman铜矿
权地在2010年12份更新的总矿产资源量估
计比之前的提高了34%。
修订后的采矿计划包括修改吨位数组合,
为了恢复堆场的铜资源存量需要首先开采最
高品位的矿石区域。由于2月份和3月份气
The crushing and beneficiating facilities at Atlantic’s Windimurra Vanadium Project.
54 | ASIA Miner | July/August 2011
候潮湿,需要移除更多覆盖岩层,以及于较
高标准层面上开采,当中的矿石品位低于矿
坑下的矿石地带。
现有Mount Clarke、 Flying Horse及 Lady
Annie矿坑下的过渡矿石含有8.2万吨以上的
铜。过渡矿石为氧化矿及硫化矿的混合物,
储藏于那些矿床的氧化及硫化矿化带。
冶金钻探项目已开始取得所需样本,在这
些过渡地带进行堆浸冶金测试工作,预期于
9月前完成初步测试工作结果。公司的首席
执行官Damon Barber先生称,这些结果将有
助于中科矿业了解堆浸这些矿石的经济效益
。该矿区使用了5个钻机,另外,一个回旋
式空气喷射(RAB)钻机已经运抵,协助钻探。
Lady Annie项目的钻探作业主要目的是扩
大氧化物资源及圈定硫化矿。现已招聘8名
新地质学家使勘探组成员增加,目前共有
17名地质学家和18名矿场助理,他们将对
众多的勘探靶区负责。
截至3月31日结束的5个月内电解铜总产量
为5907吨,是公司完成2011年2.4-2.5万吨
产量目标的一部分。公司总体的产量增长计
划是每年增加3万吨电解铜产量。
自动电解铜剥离机现已运抵现场,计划在
7月份投入运作。在一号电解厂内的全部
100个电解冶金槽均全面运作,而二号电解
厂内58个电解冶金槽的阴极种板也按计划
翻新,预计在7月份投入运作。二号电解厂
将扩大Lady Annie的电镀产量。
Vanadium resource up 30%
ATLANTIC Limited has increased the JORC
compliant ore reserve estimate at its
Windimurra Vanadium Project by 30% to 128
million tonnes. The pr oposed annual vanadium
output has also incr eased by 10% to
6300 tonnes and this is expected to meet 7%
of worldwide demand.
The project, which is expected to begin production
in the next few months, is about
600km north of Perth and 80km by road from
Mt Magnet in W estern Australia. The vanadium
and hematite ore deposit lies within the
eastern flank of the 2000sqkm Windimurra intruded
layered gabbro complex which is part
of the regional Murchison granite-greenstone
province. It’s being explor ed by Atlantic’ s
wholly-owned subsidiary Midwest Vanadium.
Atlantic’s managing dir ector Michael Minosora
says the increase extends the potential
life of mine to 28 years. “The reserve increase
also delivers the tangible potential for an increase
in vanadium output fr om our nearly
completed plant. A r evised life of mine plan
shows we will process ore with a head grade
of 0.51% vanadium, an increase from 0.47%
and which is sustainable for a 10 year period.
“With improvement in head grade and
process optimizations, we also expect an improvement
in operating costs which will become
evident as we ramp up production.”
With the increased output capacity, Atlantic
has begun to bring online the existing vanadium
pentoxide circuit which was a legacy of the project’s
previous owners. Michael Minosora says
the vanadium pentoxide market has pr ovided
an attractive option for the company.
Vanadium demand is directly linked to global
steel consumption, with about 90% of global
vanadium production consumed in the steel industry.
It’s primarily used as an alloy to steels
in order to increase the strength and improve
the high temperature performance of steels.
The project is expected to be a low-cost operation
because of Atlantic’s negotiations during
its acquisition of Windimurra. It acquired the

News 3_Layout 1 6/17/11 4:53 PM Page 55
crushing and beneficiation plant as well as a
hematite by-product revenue stream opportunity
and has renegotiated key supply contracts.
The existing accommodation camp at the site
has also been acquired to allow management
of the construction and commissioning of the
project in the coming months. Structural, mechanical
and piping is under construction with
electrical and civil work proceeding.
The company has also pr ogressed implementation
of its strategy to monetize the
stockpile of hematite at W indimurra as well
as the expected one million tonnes of
hematite that will be produced annually once
the project is operational. Talks have been
held with logistic supply chain partners to deliver
the product into the world market.
Atlantic holds a further 23km of the highly
prospective magnetic signature to the south of
its current mining leases, which has been detected
from aerial geophysics techniques and
confirmed by land based mapping.
Farm-out boost for Dynasty
AN announcement on whether Dynasty Metals
will commit to a pre-feasibility study at its flagship
Prairie Downs iron ore project is imminent
while a farm-out agr eement with China Coal
Geology Engineering Corporation (CCGEC) has
allowed the company to take the next steps in
a strategic plan at its iron ore tenements.
The agreement covers Dynasty’s non-core
base metals tenements, including the uranium
tenements at Hector Bore and Mt Phillips and
its Hyden gold tenements. These have been
transferred into a separate legal entity for an
Aus$2 million interest from CCGEC.
Dynasty’s Prairie Downs pr oject is 40km
southwest of the Mt Newman township in
Western Australia’s Pilbara region. The company
is evaluating three types of mineralization
at the site including detrital channel ir on
deposits, iron-rich basal conglomerate deposits
and the Marra Mamba ir on deposits
with direct shipping ore grades of iron.
On a tenement holding known as the
Spearhole deposit, the company has identified
a 1.4 billion tonne detrital ir onstone deposit
and a 23 million tonne hematite deposit,
which includes 932 million tonnes at 27%
iron. Preliminary test work has indicated that
simple, low-cost processing can upgrade the
detrital iron to direct shipping ore (DSO). The
potential development of this deposit is likely
Australia
to benefit from a number of economic advantages
and its strategic location in the Pilbara.
Dynasty has undertaken investigations in the
first half of 2011 to form the basis of a pre-feasibility
study. These works include pr eliminary
mine planning and pit optimization studies,
process-route design, infrastructure, operating
and capital costs. Base line environmental and
native title studies have commenced to support
a mining lease application and approvals.
There were 20,000 metres drilled at Prairie
Downs during 2009 and 2010. Since then,
economic investigations suggest the Spear -
hole detrital iron deposit will annually produce
at least 15 million tonnes, with low mining costs
due to a low to negligible waste to ore ratio and
a free-digging, unconsolidated iron deposit.
Dynasty’s chief financial officer Michael van
Uffelen says the ore will require simple physical
processing to achieve marketable grades
of iron and silica.
“We consider there is scope to develop this
massive deposit and also to discover additional
ironstone deposits and additional
higher grade hematite deposits. Such additional
material will add to the economics of
the Spearhole deposit,” he said.
July/August 2011 | ASIA Miner | 55

News 3_Layout 1 6/17/11 4:53 PM Page 56
Pakistan
THAR COAL RESOURCES AND PAKISTAN ENERGY GROWTH
Special report by Waqas Abdul Aziz, geologist, Engro Powergen
PAKISTAN is currently facing a huge energy crisis
of around 5000 MW with fr equent power
cuts and this translates to an annual cost to the
country of around US$2.5 billion. Moreover, the
annual unemployment rate is touching high
peaks with a massive r eduction in annual exports.
Keeping in mind the current energy security
issues in Pakistan, utilization of its mineral
resources is of immense importance.
Pakistan has a huge coal deposit, Thar , in
the southern part of Sindh Pr ovince
(Tharparkar) about 400km from Karachi. The
terrain is sandy and r ough with sand dunes
forming the topography. As a result of widespread
drilling over the area of 9100sqkm, a
total of 176 billion tonnes of coal resource potential
has been assessed. The Thar lignite is
recognized as a major energy source, which
has potential to substantially support energy
production from an indigenous resource.
Figure 1: Regional stratigraphic details of the Thar Coal Field.
Figure 2: Coal resources of the various Blocks at Thar Coal Field.
56 | ASIA Miner | July/August 2011
From 1992 until 2010 several r econnaissance
and exploration programs have been
carried out and nearly mor e than 500 exploratory
drill holes have been sunk covering
an area of 700sqkm to determine the extent
of the lignite deposit. A detailed geological
assessment has been carried out in order to
define the blocks available to be mined. Many
drilling companies have been allotted exploration
licences in this domain.
The geology of the Thar Coal Field is not
very complex, having Aeolian sand overlaid
on alluvial limonitic siltstones. Coal is
bounded with unconformity fr om top and
bottom while the basement is granitic. The
only fault in the ar ea is Mainland Runn of
Kutch Fault and tectonically the area is considered
as passive. The stratigraphic succession
of the region can be seen in figure 1.
Based on these exploration results and geo-
logical assessments up to 2011, 10 blocks
have been developed at Thar. The lignite resource
estimation in the Thar region has been
based on various standards but mainly JORC,
USGS & GESCR (China). A number of the Thar
blocks with their resource figures and method
of estimation can be seen in figure 2.
During the extensive drilling thousands of coal
samples have been sent for proximate and ultimate
testing in different coal testing laboratories
around the country and overseas as well.
Thar coal is classified as lignite of ‘ASTM’ type
B. The quality tests for Thar coal r eveal higher
heating values (LCV) of about 12 Mj/kg with
total moisture of 47%, and low ash and sulphur
values, ie 6.5% ash on as r eceived basis and
1.09% total sulphur as received, which is comparably
better than lignite being used in Greece
and Germany for power generation.
In 2004 RWE-RE of Germany carried out a
detailed feasibility study for Block I while in parallel
Shenhua China carried out a detailed mine
and power plant feasibility study for Block II.
However, for Block I no adequate financing closure
could be established and for Block II project
agreement could not be reached.
In August 2010 Sindh Engr o Coal Mining
Company successfully completed a bankable
feasibility study for an open pit mine on Block II
with assistance of Shenhua and Sinocoal
Group of China and in consultation with RWE-
RE. This is now awaiting financial closur e. The
study also covered a detailed Environmental &
Social Impact Assessment (ESIA) Report which
was completed by SRK Consultants. Accor ding
to a precise estimate, development of Block
II alone would bring in investment of US$12 billion
and would be capable of pr oducing 5000
MW for 75 years of the mine. The study also revealed
a favourable stripping ratio of 6.5 cubic
metres/tonne, which is again comparable to different
operating mines in the world.
Considering the technical viability and existence
of enormous lignite deposits, Oracle
Coal Fields, a UK-based company, has leased
Block VI of the Thar Coal Field and is setting
up a feasibility study with and ESIA r eport,
which is expected to be completed in the middle
of this year. Proposed annual production
levels for this mine would initially be 2.5 million
tonnes rising to 3.5-4 million tonnes as the demand
for power generation starts up.

News 3_Layout 1 6/17/11 4:53 PM Page 57
Global MInES Sydney 2011, July 4-6.
www.acevents.com.au/mines2011
Iron Ore 2011, July 11-13, Perth, Western Australia.
www.ausimm.com.au
Mining Investment Fundamentals, July 12-14,
Singapore. www.mininginvestmentfundamentals.com
Mining the Pilbara, July 18-19, Port Hedland,
Western Australia. www.iir.com.au/conferences
India Coal 2011, July 26-27,
Kolkata, India. www.asappmedia.com/events
Water Management in Mining, July 26-27,
Brisbane Australia. www.watermgmtmining.com.au
Diggers and Dealers, August 1-3,
Kalgoorlie, Westernn Australia.
www.diggersndealers.com.au
8th International Mining Geology Conference
2011, August 22-24, Queenstown, New
Zealand. www.ausimm.com.au
Coaltrans Australia, August 23-24,
Brisbane www.coaltrans.com
Workforce Strategies, August 23-24, Perth,
Western Australia. www.iir.com.au/conferences
Mining for New Zealand, August 27-30,
Queenstown, New Zealand. www.ausimm.co.nz
Mining NSW, August 30-31,
Orange, NSW, Australia.
www.regionalminingevents.com.au
Financing & Investing in Coal, September 5-6,
Singapore. www.coaltrans.com
AIMEX 2011, September 6-9,
Sydney, Australia. www.aimex.com.au
McCloskey China Coal Import & Export Forum
and Asia Pacific Coal Outlook, September 6-7,
Beijing, China. www.conf.mccloskey.com
Discover Mongolia, September 8-10,
Ulaanbaatar, Mongolia.
www.discovermongoliaforum.com
2011 Calendar
Mining Indonesia 2011, September 21-24,
Kemayoran, Jakarta.
www.pamerindo.com/events/5
Miningworld Central Asia, September 21-23,
Almaty, Kazakhstan. www.miningworld.kz/en/
McCloskey India Coal Markets, September
28-29, New Delhi, India. www.conf.mccloskey.com
Coal Trading and Risk Management,
September 27-29, Singapore. www.coaltrans.com
Heavy Minerals 2011, October 5-6, Perth,
Western Australia. www.ausimm.com.au
Mines and Money Australia, October 10-12,
Sydney www.minesandmoney.com
Vietnam Investment Summit 2011,
October 19-21, Ho Chi Minh City, Vietnam.
www.terrapinn.com/2011/vis
Explo 2011, October 27-28, Melbourne, Victoria.
www.ausimm.com.au
July/August 2011 | ASIA Miner | 57

Legally Speaking_Layout 1 6/17/11 4:54 PM Page 58
Legally Speaking
ASIAN JUNIORS: RAISING CAPITAL IN EVOLVING MARKETS
By Sean Twomey, Norton Rose Group, head of business development-Asia
CONSOLIDATION amongst stock exchanges is
at an unprecedented level in a commodities-fuelled
race to become the premium global minerals
exchange. Exchanges are merging, forming
strategic partnerships, and developing new and
tailored listing rules in order to offer more opportunities
and sources of finance. What ef fect will
these changes have on miners seeking capital?
BACKGROUND
2009 was a tough year for junior miners.
While the challenging market conditions led
to majors deferring capital expenditur e, juniors
found their ability to raise funds in an illiquid
market severely curtailed.
Fast forward to 2011 and the mining industry
is roaring ahead while global commodity prices
are high. Some of the largest recent IPOs and
secondary listings have been by mining companies
- Glencore, Tahoe Resources, Pretium
Resources, Aston Resources and Vale.
Mining equity financings in 2010 with the figures representing billions of Canadian dollars.
The number of mining listings in 2010 on various stock exchanges.
58 | ASIA Miner | July/August 2011
MORPHING AND CHANGING
As investors demonstrate their enthusiasm
for the mining industry, so the resource-heavy
stock exchanges have started a r ound of
jockeying for position. Proximity of market to
mine is no longer the primary driver for r esource
companies - access to capital, sophistication
of investors, valuation levels and
suitability of listing requirements are now as
important as geographical considerations.
Toronto Stock Exchange (TSX)
and TSX Venture Exchange (TSX-V):
With thousands of juniors listed on the exchange,
a sophisticated pool of analysts, a
good supply of experienced bankers, lawyers
and accountants supporting the industry and
access to North American capital, the TSX and
TSX-V have reputations as the leading global
mining exchanges. Valuations by analysts who
understand the political risks faced by Asian
juniors are typically high, and the flexible two
tier system with tailored listing requirements offers
straight forward and swift access to capital
for early stage exploration companies and
smaller financings. Over the last 5 years, more
than 80% of all mining equity financings wer e
carried out on the TSX or TSX-V.
London Stock Exchange (LSE)/Alternative
Investment Market (AIM):
The LSE is home to some of the world’s largest
mining companies - 2010 saw the financings of
Rio Tinto and Xstrata - and has much to of fer
mining majors in terms of profile and access to
capital. However, geographical considerations
and the LSE/AIM’s historical links to Africa and
Russia mean that it may not be the first market
an Asian miner will look to for finance.
In April 2011, the TSX and LSE announced
a merger aimed to create a ‘global resources
powerhouse’. It will be some time before regulators
announce their decision. Meanwhile,
the LSE has announced a strategic partnership
with the Mongolian Stock Exchange
(MSE) to r estructure and develop its exchange
by advising on market rules and procedures
and developing a market index.
Australian Securities Exchange (ASX):
Junior miners have historically made up a
large proportion of the listings on the ASX,
and this board has long been attractive to
Asian miners due to its geographical proximity
and established mining credentials. However,
the ASX’s traditional position as primary
destination for Asian juniors is subject to challenge
from Canada and, potentially , Hong
Kong. It is currently carrying out a review and
consultation to establish how it might increase
its appeal to r esources companies
outside the top 200.
Singapore Exchange (SGX):
The SGX is going to some eforts to develop
its reputation as a destination for mining exploration
companies. In February 2011, it introduced
the new Catalist rules in an ef fort
to attract early stage mineral, oil and gas
companies. Amongst other things, the new
(Continued on p.60)

Legally Speaking_Layout 1 6/17/11 4:54 PM Page 59
THE Indonesian Government has recently issued
a Moratorium Instruction and 2 Regulations
on Forest Area Utilization. The matters
are of considerable interest to existing and potential
investors in Indonesia’s mining industry.
Indonesia-based Christian Teo Purwono &
Partners has provided executive summaries
based on its understanding of these Pr esidential
regulations. Many of the points made
in the summaries are necessarily speculative
in nature and subject to further clarification
and confirmation. Accordingly, it would be
prudent not to rely solely on the summaries
but, rather, to seek specific legal advice.
Presidential Instruction re Moratorium on the Granting
of New Licences and the Improvement of Primary
Natural Forest and Peat Lands Management:
1. For the purpose of reducing Greenhouse Gas
Emissions, the President has instructed various
authorities to take all necessary action to
support a moratorium on the issuance of new
licences for the utilization of Primary Natural
Forests and Peat Lands except in the case of:
(i) Applications that have already received
an Approval in Principle Licence fr om
MoFor;
(ii) The implementation of vital national
development, such as geothermal, oil
and gas, electricity, rice and sugar cane
fields;
(iii) Extension of existing Forest Utilization
Business Licences and/or Forest Area
Utilization Permits (ie, Rent Use Per -
mits) provided that the r elevant business
licences (eg, IUPs/CCoWs/CoWs)
are still valid; and
(iv) Ecosystem restoration.
2. ‘Primary Natural Forest’ is a term which is
commonly understood as referring to natural
forest areas which have never been
the subject of any logging activities. However,
there is no legal definition of ‘Primary
Natural Forest’. Accordingly, the determination
of whether or not a For est Area is
Primary Natural Forest is to be made by
having regard to the indicative map attached
to Presidential Instruction 10/2011.
3. The indicative map is to be r evised and
updated every 6 months.
4. The indicative map is not at all clear.
5. It is tolerably clear, however, that all types
of Production Forest, as well as Areas for
Other Purposes, may include areas of Primary
Natural Forest. Accordingly, President
Instruction 10/2011 will pr event the
issuance of Rent Use Permits for mining
activities in that part, if any, of Production
Forests and Ar eas for Other Purposes
which comprise Primary Natural Forest or
Peat Lands.
6. The moratorium is for 2 years fr om May
20, 2011.
Presidential Regulation re Underground Mining
in Protected Forests:
1. Mining activities may be carried out in Protected
Forest Areas by way of under -
ground mining so long as this does not
alter the main purpose and function of the
Protected Forest Areas.
2. In order to be able to utilize Protected Forest
Areas for underground mining activities,
the holders IUPs/CoWs/CCoWs must
apply for and obtain Protected Forest Rent
Use Permit from the Minister of For estry
(MoFor).
3. MoFor will, first, issue an Approval in Principal
Licence to the applicant for a Pr otected
Forest Rent Use Permit, with a
maximum initial validity period of 2 years
but which is extendable, subject to evaluation
by MoFor.
4. The Approval in Principal Licence will
specify a number of obligations that
must be fulfilled by the Protected Forest
Rent Use Permit applicant in or der to
obtain the Protected Forest Rent Use
Permit.
5. Once the Appr oval in Principal Licence
holder fulfils the Approval in Principal Licence
Obligations, MoFor will issue the
Protected Forest Rent Use Permit.
Legally Speaking
FOREST MORATORIUM COMMENTS
6. Protected Forest Rent Use Permits will be
initially granted for a maximum period of
20 years but be extendable in accordance
with the validity period of the underlying
IUPs/CoWs/CCoWs and subject to evaluation
by a Monitoring & Evaluation Team.
7. Protected Forest Rent Use Permits ar e
transferable subject to MoFor’s prior written
approval.
8. Protected Forest Rent Use Permit holders
are prohibited from carrying out under -
ground mining activities which may cause
land surface subsidence or permanent
change to the purpose or function of Protected
Forest Areas.
9. A Protected Forest Rent Use Permit may
be revoked by MoFor if its holder (i) does
not fulfil certain obligations under the Protected
Forest Rent Use Permit or (ii) violates
Presidential Regulation 28/2011.
Ministry of Forestry Regulation on Guidance
re Rent Use Permits for Forest Areas:
1. Rent Use Permits authorize the utilization
of (i) Production Forest Areas and (ii) Protected
Forest Areas for non-forestry activities,
including general mining activities.
2. Rent Use Permits ar e now divided into 2
types being:
(a) Rent Use Permits for Survey or Exploration
Activity (Exploration Rent Use
Permits), which ar e valid for 2 years
(and extendable); and
(b) Rent Use Permits for Other Activities
(i.e., exploitation activity) (Exploitation
Rent Use Permits), which are valid
for the same period as the underlying
business licence (eg, IUP, or CoW).
3. Except in very limited situations, Rent Use
Permits are issued by MoFor.
4. According to MoFor, there is no express
limitation on the size of the area which may
be covered by an Exploration Rent Use
Permit. However, certain limitations may
apply, on a case by case basis, subject to
evaluation and consideration by MoFor.
July/August 2011 | ASIA Miner | 59

Legally Speaking_Layout 1 6/17/11 4:54 PM Page 60
Legally Speaking
5. In order to obtain a Rent Use Permit, a
party must, first, submit an application to
MoFor and fulfil a number of administrative
and technical requirements.
6. If the Rent Use Permit applicant fulfils the
subject administrative and technical r equirements,
MoFor will issue to the Rent
Use Permit applicant, in the first instance,
an Approval in Principal Licence with a
maximum validity period of 2 years which
is extendable, subject to evaluation.
7. The Approval in Principal Licence is to be
issued within 3 to 4 months of completion
of the administrative and technical r equirements.
8. The Approval in Principal Licence will specify
a number of obligations that need to be
fulfilled by the Rent Use Permit applicant
for the purpose of obtaining the Rent Use
Permit. Once the Approval in Principal Licence
holder fulfils the obligations stated
in the Approval in Principal Licence, MoFor
will grant a Rent Use Permit to the Approval
in Principal Licence holder.
9. The Rent Use Permit is to be issued following
submission of an application after
fulfilment of the Appr oval in Principal Licence
obligations and in (i) 4 months for
Exploration Rent Use Permits and (ii) 2
months for Exploitation Rent Use Permits.
10. A Rent Use Permit applicant must meet a
compensation requirement as follows:
(a) If the total Forest Area in the relevant
province, where the target forest
area is situated, comprises less than
30% of the total Provincial land area (including
islands and rivers), then the applicant
must pr ovide compensation
land in certain ratios depending on the
purpose of the activities to be conducted
in the forest area; and
(b) If the total forest area in the relevant
province, where the target forest area
is situated, comprises more than 30%
of the total pr ovincial land ar ea (including
islands and rivers), the applicant
is obliged to pay Non T ax State
Revenue in respect of Forest Area Utilization
and carry out r eforestation in
certain ratios depending on the pur -
60 | ASIA Miner | July/August 2011
pose of the activities to be conducted
in the forest area.
11. In the case of a Pr oduction Forest Area
that is already the subject of a Forest Utilization
Business Licence, Rent Use Per -
mits for mining activities may only be
granted for a maximum of 10% of the total
area covered by the For est Utilization
Business Licence.
12. In the case of a Pr oduction Forest Area
that is not the subject of any For est Utilization
Business Licences, Rent Use Permits
for mining activities may only be
granted for a maximum of 10% of the total
Production Forest Area.
13. Rent Use Permits for mining activities, in
a Protected Forest Area, may only be
granted for a maximum of 10% of the total
Protected Forest Area.
14. The ‘10% r estriction’, in points 11, 12
and 13 above, does not apply to Rent Use
Permits in respect of exploration activities.
15. In addition to the relevant utilization activities
(ie, general mining activities), a Rent
Use Permit also gives the holder the right
to carry out land clearance and deforestation
activities.
16. A party is not allowed to transfer its Rent
Use Permit to another party without prior
approval from MoFor.
17. Transfers of Rent Use Permits will be approved
within 2 months of the transfer application
being submitted.
18. Renewals of the Rent Use Permits will be
approved within 2 months of the r enewal
application being submitted.
19. MoFor Regulation 18/2011 is intended to
remove much of the uncertainty and r educe
much of the delay which is presently
associated with obtaining a Rent Use Permit.
However, whether or not these objectives
are realized depends very much on
how MoFor Regulation 18/2011 is implemented
in practice.
Please contact Bill Sullivan, licensed foreign
advocate, Christian Teo Purwono & Partners,
+62 21 515 0280 or bsullivan@cteolaw.com
(Asian Juniors - from p.58)
rules introduce disclosure and transparency
standards in line with inter national
practice.
Hong Kong Stock Exchange (HKEx):
Hong Kong has overtaken London and New
York as the primary destination for large
scale listings (IRC Ltd’s IPO, Vale SA’s secondary
listing, Glencore’s IPO, UC Rusal’s
listing, Agricultural Bank of China’s dual listing,
SBI’s secondary listing) but it has not
historically been an obvious choice for junior
mining companies seeking capital. In June
2010, the board changed its listing rules to
make it easier for mining companies to raise
capital for discoveries already made. In April
2011 the HKEx announced the establishment
of the Hong Kong Mer cantile Exchange,
a commodities exchange designed
to meet the rising commodities demand
from China. These developments, together
with its access to Asian capital and proximity
to resource markets, may see the HKEx
emerge as an incr easingly attractive exchange
for the junior mining sector.
Indonesia Stock Exchange (IDX):
A small number of domestic mining companies
have elected to list on the IDX, such
as Bumi Resources and Adaro, but to date
there has been little precedent for non-Indonesian
juniors listing on the IDX. Contributing
factors may include the language
barrier, the lack of a substantial institutional
investor base and consequent level of liquidity
when compared to the HKEx, ASX
and the SGX.
THE FUTURE
The TSX/TSX-V and ASX r emain established
markets for Asian juniors. Developments
on the HKEx, pr opelled by
investment appetite from the mainland, are
likely to increase its attractiveness to juniors
seeking capital on the Asian markets.
Singapore’s Catalist is in the early stages
of its development as a mining, oil and
minerals hub, and the MSE may be a longterm
watch.
Sean Twomey is based at Norton Rose (Asia)
LLP in Singapore, phone +65 6309 5451 or
email sean.twomey@nortonrose.com

Legally Speaking_Layout 1 6/17/11 4:54 PM Page 61
CHURCHILL Mining’s appeal has been
filed to the Administrative High Court in
Jakarta, Indonesia. The company has been
caught up in a major legal battle over the
future of its flagship East Kutai coal mine
development after an attempt by r egional
authorities to cancel the licences that host
the project.
Previously the East Kutai Regent (Bupati),
an authority that governs the East Kutai administrative
region of the East Kalimantan
Province, had purported to have cancelled
the four mining licences.
Churchill subsequently referred the matter
to administrative tribunal in Samarinda, the
province’s capital city. It was an attempt to
have the original cancellations of ficially expunged
from the record because they considered
that the Bupati had violated a number
of administrative pr otocols. In Mar ch the
Samarinda tribunal ruled against Churchill.
The company has now confirmed that its
Field work at one of Churchill Mining’s tenements in Kalimantan.
Indonesian partner Ridlatama has filed
Memoranda of Appeal with the Administrative
Court in Samarinda and the appeal will
be heard by the Administrative High Court in
Jakarta. Churchill says that the Administrative
High Court will advise the parties of its
decision in due course.
The AIM-listed firm’s chances at appeal
received a major vote of confidence recently
as two new Indonesian partners invested
£7.7 million and subscribed for shares in the
company. Analysts believe the two influential
business people Churchill has brought
on board could provide some much needed
local expertise.
Northland Securities analyst Andr ew
McGeary says that Churchill shares are still
trading at good ‘recovery levels’ under the
circumstances. “The company has rallied
strongly since its private placement with a
local investor raised £7.7 million. W e welcomed
this move which pr ovided a much
Legally Speaking
CHURCHILL FILES EAST KUTAI APPEAL
needed fillip,” he said in a note to clients.
“However, we view the legal pr ocess as
high risk and therefore maintain caution on
the shares which are trading at good recovery
levels under the circumstances.”
Churchill Mining is an AIM-listed mining
company with a significant thermal coal development
project in the East Kutai Regency
where to date more than 2.73 billion
tonnes of coal resource has been defined to
JORC standard. The project feasibility study
has been completed, indicating an economic
and desirable project and the study
forms the platform for the next stage in the
development of the project.
In addition to the East Kutai pr oject,
Churchill has interests in the Sendawar Coal
Bed Methane Pr oject in East Kalimantan
and a strategic holding in Spitfir e Resources,
which is developing the South
Woodie Woodie Manganese Pr oject in
Western Australia.
July/August 2011 | ASIA Miner | 61

Grinding Mills_Layout 1 6/17/11 4:29 PM Page 63
ACCORDING to Xstrata T echnology, its
IsaMill horizontal grinding mill has gained
ground in the tertiary grind and the r egrind
markets. Originally developed for fine grinding
down to 7 µm for lead/zinc or es, Xstrata
Technology says the IsaMill has also established
itself in coarser applications for a variety
of ore types that include copper, nickel,
platinum group minerals, industrial minerals,
gold and lately, molybdenum and magnetite.
According to the company, which is a subsidiary
of Xstrata plc, mor e than 90 IsaMills
have been installed worldwide since the first
installation in 1994, with mor e than 140 MW
of power employed in grinding minerals. The
majority of the mills operate using ceramic
media, providing an iron-free grinding environment
to allow better contr ol of downstream
flotation and leaching operations due to no ferric
ions being generated by the media.
The other big advantage of the mills, said
Xstrata, is energy efficiency due to the abrasion
and attrition grinding action of the
media on mineral particles. The high media
load in the mill, agitated by high-speed
grinding discs, ensur es minimal energy
waste and provides high energy efficiency.
The IsaMill also incorporates a pr oprietary
particle separator, minimizing overgrinding
of the particles as the ground particles pass
through the separator, while reticulating the
oversize material back into the mill.
An IsaMill can be pr ovided as part of a
complete grinding plant for pr ojects, which
reduces the installation time for the pr oject.
Steve Schmidt, operations manager–mineral
processing at Xstrata Technology, said customers
are interested in this approach, as it
minimizes risk and includes mills, surr ounding
steel work, feed and discharge pumpboxes
and pumps and the media charging
system as well as commissioning crews.
Schmidt said the large number of IsaMill circuits
Xstrata Technology has designed and installed,
from the smallest M250 and M500
circuits to the largest M10000 cir cuits with
multiple mills, ensur es that key information
from development of previous circuits is used
in any current project, leading to trouble-free
operation when the circuits are commissioned.
Projects in various stages of study or development
that will include IsaMill technology
include the Endako molybdenum pr oject,
where three M1000 IsaMills powered by 500kW
(670-hp) motors ar e being installed. A
larger M3000 IsaMill will be installed at a Vale
nickel concentrator in a br ownfield application,
using ceramic media to assist in downstream
nickel flotation. Both pr ojects are in
IsaMill circuit including IsaMill, pump boxes and the new IsaCharger media handling system.
Grinding Mills
ISAMILLS ROLL INTO NEW
GRINDING APPLICATIONS
Initially designed for ultrafine grinding, IsaMills have taken on a number of new fine
and coarse grinding tasks in a wide variety of ore types
Canada, with Xstrata Technology’s Vancouver
office managing IsaMills installations.
Xstrata Copper’s recently approved Las
Bambas Project also will feature IsaMills. The
project is located in the Apurímac Region of
Southern Peru, and is expected to be one of
the biggest greenfield copper mines to come
on stream globally in the next decade. Xstrata
Technology will provide three M3000 IsaMills
in the regrind circuit of the new concentrator.
Each mill will be powered by 1500-kW (2,000hp)
motors and will use ceramic media.
The new concentrator will be designed to
treat 140,000 mt/d of ore in a two-line operation
and will initially pr oduce 400,000 mt/y
of copper in concentrates. The IsaMills will be
included in the concentrate regrinding circuit,
and like Xstrata Copper’s Antapaccay installation,
will incorporate Xstrata Coppers’ standard
concentrator design concept.
Bob Drabik, executive general manager of
Xstrata Copper Project Development–South
America, said: “We chose IsaMill technology
for our Antapaccay and Las Bambas projects
July/August 2011 | ASIA Miner | 63

Grinding Mills_Layout 1 6/17/11 4:29 PM Page 64
Grinding Mills
Xstrata Technology’s new IsaCharger is a media addition system for IsaMills; it has no moving parts and uses water
induction to transfer media to the mill.
in southern Peru because of the equipment’s
energy efficiency and ability to deliver a pr ecise
size distribution curve with minimal overgrinding,
which in tur n helps to r educe
excessive circulating loads.
“A primary consideration when developing
our new projects is to seek ways to minimize
our environmental footprint and IsaMill technology
helps us to achieve this due to its
smaller size than other comparable mills.”
The IsaMills ar e being supplied as a full
package, where Xstrata Technology will be
responsible for the supply of the mills, steelwork,
feed and discharge pumpboxes, as
well as the new proprietary IsaCharger media
transfer system. The M3000 IsaMills will include
the new High Flow design that permits
high tonnage throughput, and still delivers superior
energy efficiency. Commissioning of
the mills is planned for 2014.
NEW DEVELOPMENTS
Iron Ore Applications
The newest application for the IsaMill is in
magnetite grinding. An M10000 is being installed
at Xstrata Copper’s Ernest Henry mine,
in Queensland, Australia, where a new circuit
at the plant will use magnetite-rich tailings from
the copper concentrator to pr oduce a highgrade
iron concentrate for export.
An M10000 IsaMill will be installed in the circuit
to reduce magnetite-bearing material down to
40 µm for production of higher-value concen-
64 | ASIA Miner | July/August 2011
trate. Total production from the circuit is planned
to be 1.2 million metric tons per year (mt/y).
John Twomey, manager—magnetite project
for Xstrata Copper, said that Xstrata Technology
will provide an M10000 IsaMill package to the
Ernest Henry site, which includes the IsaMill,
powered by a 3-MW motor, as well as feed and
discharge pumpboxes, steel work and media
addition system. The Installation of the mill at the
site is planned for the first half of 2011
IsaCharger
Xstrata Technology also notes that a new
media handling system for the IsaMill has
been undergoing development over the last
several years, r esulting in r elease of the
IsaCharger, which has no moving parts and
uses a high-capacity water induction feeder,
a fully integrated media collection system,
pipework, valving and instrumentation to eficiently
add media to the IsaMill. The
IsaCharger has been designed to operate in
two modes: the first is to add media at low
rates to maintain the grinding power on the
mill. However, it also can be set to r efill the
mill quickly after maintenance at much higher
addition rates. This reduces the media handling
and enables the mill to operate at higher
power much quicker than previous methods,
minimizing downtime.
High Flow Range
The IsaMill design was r ecently improved to
incorporate High Flow models. Based on
DEM computational modelling, the mill design
was modified to allow for higher throughputs
to be achieved in the mill, impr oving
power draw and power efficiency. The basic
shape, footprint and auxiliaries around the mill
remain the same as the previous model, and
ceramic media is still used in the mill.
Information for this article was provided
by Xstrata Technology.
This 3,000-kW M100000 IsaMill was installed at PanAustralian’s Phu Kham copper operation in Laos in 2007. In October
2010, the company approved a $110-million investment to increase capacity of the Phu Kham process plant to annual
copper production of 65,000-70,000 mt starting in mid-2012. The scope of the upgrade includes an increase to a
nominal 16 mt/y of ore from the current rate of 12 million mt/y.

Grinding Mills_Layout 1 6/17/11 4:29 PM Page 65

Supplier-Product News_Layout 1 6/17/11 4:34 PM Page 66
Product News
MINES MUST UNIFY FUEL SUPPLY FROM
By Bill Clifton, Banlaw chief executive officer
FUEL is one of the major
costs for mining opera -
tions, accounting for up to
40% of the total cost of
1. GET THE MEASURE OF YOUR FUEL USE
You can’t manage what you can’ t measure.
To make sure that a mine is getting what it
pays for it is essential to have inward flow metering.
This gives managers a baseline measure
of what comes into the site.
On site fuel measur ement is now an easy
and powerful pr ocess for contr olling costs.
Many mining companies are wasting significant
money because they cannot measur e fuel
wastage or fuel shrinkage. Precise monitoring,
reconciliation and centralized reporting is possible
for all hydrocarbons dispensed by vehicle,
tank and distribution points.
The benefits of such systems extend far
beyond fuel security. They assist with environmental
compliance, stock reconciliation,
maintenance scheduling, cost analysis, the
Banlaw urges mine operators to adopt a unified fuel management approach.
66 | ASIA Miner | July/August 2011
equipment operation. Particularly in an environment
of rising fuel prices, mine managers
can enjoy significant efficiency savings by taking
a unified fuel management approach from
calculation of burn rates, fuel or dering and
the correct claiming of tax credits.
2. FILTRATION PREVENTS CONTAMINATION
Reducing contamination is a key to enhancing
the life of capital equipment - another
major cost input for mines. Fuel quality is also
critical in optimizing the efficient operation of
that equipment. Clean air and fuel can improve
fuel economy in equipment by between
5% and 8%. Having a clean fuel
supply to begin with is important but a mine
site generates plenty of water and dust par -
ticles that can quickly contaminate fuel supplies.
A leading mining company r ecently
carried out a global study of its fleets and determined
that it had between 200 and 300
tonnes of dirt in its equipment fuel tanks.
‘buy’ right thr ough to ‘bur n’. Here are five
areas that are critical for effective unified fuel
management that will save mines money and
improve productivity in the long term:
Data suggests that up to 70% of lubricated
equipment failure is attributable to contamination.
Water and particle contamination significantly
reduces the longevity of the major
mechanical components in the engine. It also increases
fuel injector degradation. Proper injector
operation is, of course, vital for optimum combustion,
economy, emissions and lubrication.
While cutting costs and corners in filtration is a
false economy the solution is not always buying
more equipment or upgrading to mor e expensive
synthetic base lubricants. The solution often
lies in establishing contamination control measures.
There have also been significant improvements
in oil transfer fittings in r ecent years to
ensure a cleaner, more reliable connection. Very
low cost solutions like ensuring tank vents have
robust and serviceable seals as well as making

Supplier-Product News_Layout 1 6/17/11 4:34 PM Page 67
PAID ADVERTISEMENT

Supplier-Product News_Layout 1 6/17/11 4:34 PM Page 68
Product News
sure dust caps are on when couplings aren’t in
use can all help to make fuel inputs cleaner.
Another issue affecting mines is new emission
control standards that will continue to be
strengthened as governments and industry respond
to climate change. OEMs are already introducing
more stringent fuel cleanliness
requirements. Unfortunately, this means that in
many mines we are seeing modern mining vehicle
engines not able to perform as they ar e
designed using current grade fuel. A common
mistake is to simply buy a filter but if it is not the
right one for the job it can lead to other costly issues
such as r educed fuel flow. I have seen
fuel-flow rates drop by 50% because a mine
has inserted a filter into a fuel line to meet OEM
specifications. Filtration must be designed to reduce
contamination and maintain flow rates.
New filtered tank vents are coming on to the
market offering substantially finer tank filtration
while ever the tank is br eathing. Rates of 10
micron absolute can now be achieved as opposed
to current rates of 30 micron nominal filtration.
These fine filtered vents also have the
added advantage of a separate exhaust path
which doesn’t allow the filter elements to be
damaged or compromised by overfilling.
3. TANK LEVEL MONITORING
An often overlooked aspect of unified fuel
management is fuel tank level monitoring.
68 | ASIA Miner | July/August 2011
Monitoring is essential for water detection
which, as discussed above, is a real issue in
terms of contamination of fuel stocks.
With proper fuel tank monitoring in place
mines can also look at ef ficiencies gained
through fuel companies managing site fuel
stocks. With web-based monitoring it is easy
to ensure that tanks don’t get below 75% full.
Monitoring also provides opportunities for consignment
stock and the charging of third parties
working on the mine site for fuel used.
here are simple tank systems that can be
installed to ensur e zero overfill, zer o tank
pressure and zero spillage during refuelling.
Mines no longer need to have the unsafe and
costly practice of manually checking tank levels.
Creating zero tank pressure also extends
the working life of the asset and r educes
maintenance costs. Reducing spillages
makes for a cleaner, safer workplace.
4. FASTER, SAFER FUEL DISPENSING
Being able to reduce the downtime associated
with refuelling vehicles and equipment can bring
significant savings and ef ficiencies to a site.
Using nozzles with the highest possible flow
rate is one solution. Ther e are now refuelling
nozzles and systems that can deliver flow rates
of up to1000 litres per minute. Many mines are
achieving rates of just 500 litr es per minute,
when they could be halving refuelling times.
Pioneers of Unified Fuel Management
As the pioneers of Unified Fuel Management, Banlaw
employs a unique end-to-end fuel management
process called Fuel-Pro3. With integrated fuel
management hardware, end-to-end fuel asset management,
consulting and training, Unified Fuel Man-
Unified Fuel Management makes fuel use more efficient at mime sites.
agement delivers productivity, reconciliation and cost
reduction like no competing solution. Its products
and systems are now used in 29 countries. Visit
www.banlaw.com or see Banlaw representatives at
the AIMEX convention in Sydney.
Speeding up the pumping of fuel is only
part of the solution and may prove ineffective
if the other equipment mounted components
are not suitable. An equipment suitability
audit is a simple way to ensur e the different
OEM components and systems used to r efuel
mining vehicles ar e customised to suit
the application and site requirements.
5. FACILITY MANAGEMENT
When it comes to our health we all know prevention
is better than cur e. A ‘healthy’ mine
site is one wher e assets are monitored and
protected to ensure their day-to-day reliability.
Proper programmed maintenance ensur es
mines gain the maximum benefit from their unified
fuel management systems. Having experts
from external companies on site as r equired,
rather than employing staf f, can provide efficiencies
here. Our clients also enjoy the added
benefit of a 24-hour help desk, an incr easingly
important requirement for mines operating
around the clock. Mine managers don’ t want
down time when paying overtime rates!
An example of the importance of maintenance
is the calibration of diesel meters. This
not only ensures that a vital piece of equipment
is working accurately; it is also a legal requirement.
Australia’s National Measurement
Institute recommends all meters be inspected
and calibrated on a six monthly basis.
1. GET THE MEASURE
Banlaw FuelTrack– Precise monitoring, reconciliation
and centralized reporting of fuel use.
2. BEAT CONTAMINATION
Banlaw LubeCentral- Makes oil and fluid
transfer a clean, efficient and safe operation.
3. TANK LEVEL MONITORING
Banlaw FillSafe- Fully electronic and automatic
system with flow rates of up to 1000
litres per minute with zero tank pressure and
zero overfill.
4. FUEL DISPENSING
Banlaw Refuelling Systems- At rates of up
to 1000 litres per minute. Drybreak refuelling
nozzles, receivers, vents, caps, br eakaway
valves and check valve receivers.
5. FACILITY MANAGEMENT
Programmed Maintenance Services
Audit and Consulting Services
Diesel Meter Calibration Services

Supplier-Product News_Layout 1 6/17/11 4:34 PM Page 69
LUDOWICI is set to revolutionize the mining industry with its latest technologies
in fine coal beneficiation known as the Reflux Classifier or RC,
which was developed thr ough a joint ventur e with the University of
Newcastle. This new equipment can be configured for separating fine
particles on the basis of either density or size. As of ficial licensors of
this technology internationally, no other company may promote or lay
claim to the technology without Ludowici’s undertaking.
The company says the Reflux Classifier is the perfect alternative to
spiral technology and has a footprint up to six times smaller than spirals.
Used in coal and minerals pr ocessing, it combines three technologies
- a Lamella Settler, an Autogenous Dense Medium Separator
and a Fluidised Bed Separator. It comprises inclined lamellar channels
that deliver better hydraulics compared to conventional technologies.
Ludowici’s Classifier technology has already been proven with the
RC300, RC600 Mk2 and RC2020 units applying the latest in gravitybased
separation engineering. The RC2020 model has been enhanced
for fine coal and minerals applications and comprises a more
easily scalable design incorporating a new ‘laminar high shear rate’
mechanism. Ludowici will unveil the RC2020 at this year’s AIMEX at
Sydney Olympic Park from September 6-9.
Ludowici’s Reflux Classifier technology can be ‘test driven’ thr ough
the smaller, pilot RC300 scaled unit. The RC300 is designed for in-plant
test work in coal and minerals applications and pr ovides an excellent
opportunity for engineers to observe how RC technology is one of the
more exciting developments in mineral processing for decades.
Ludowici has RC300 pilot units used in minerals field-testing
throughout Australia, North America, China, India and South Africa.
The Reflux Classifiers offer enhanced functionality with featur es incorporating
a new cone-shaped base for impr oving underflow, a
round mixing section, additional wear -resistant lining as well as improved
internal launder adjustment and instrumentation.
Ludowici was founded in 1858 and is one of Australia’ s most established
companies. Today it is a world leader in the design, manufacture
and supply of minerals pr ocessing and materials handling
equipment. Products servicing the mining industry include vibrating
screens and feeders, the patented Reflux Classifier , centrifuges,
screening media and consumables, various piping solutions and wear
resistant materials.
Ludowici’s managing director Patrick Largier says the diverse suite
of products and services is testimony to the company’s reputation for
innovation founded more than 150 years ago with continued dedication
to manufacturing quality and service excellence. “Ludowici is
trusted in international markets and our vision is to build an inter national
business by innovating for our customers, sharing the knowledge
of our people and developing our own technology.”
From its head office in Brisbane, Ludowici’s global footprint now includes
wholly-owned subsidiaries in South Africa, Chile, Peru, USA,
China, India and agents in other mining r esource countries. Patrick
Largier says Ludowici has placed special emphasis on driving sales
growth in Asia through its operations in India and China, its agents in
Indonesia, Vietnam, Philippines and its customers in Thailand, Laos
and PNG. “Ludowici continues to target sales gr owth as the mining
industry expands in the region.”
Product News
PROVEN CLASSIFIER TECHNOLOGY
He says Ludowici products are widely recognized for their quality
and value, and are backed by significant investments in research, development
and service. “Ludowici represents leading edge innovation
for our customers, sharing the knowledge of our people and developing
our own technology.”
These values were recognized when Ludowici was announced as
winner of Ai Group's 2011 Icon of Industry award at the Queensland
Gala Dinner on May 5, 2011. This awar d was presented to Patrick
Largier by Queensland Pr emier Anna Bligh, who made the announcement
in front of almost 300 business and government leaders.
The technology was also recognized by the IChemE2010 Awards in
the UK, winning the Cor e Chemical Engineering category for maximizing
resource efficiency.
Queensland Premier Anna Bligh presents the Ai Group's 2011 Icon of Industry award
to Ludowici managing director Patrick Largier.
July/August 2011 | ASIA Miner | 69

Supplier-Product News_Layout 1 6/17/11 4:34 PM Page 70
Product News
PITRAM OPTIMUM FOR DAMANG
MICROMINE, a provider of intuitive software solutions
to the exploration and mining industry, has
been selected by Gold Fields Ltd to implement
its mine control and management reporting solution,
Pitram Optimum, at the Damang Gold
Mine in Ghana. The company says Pitram Optimum
will allow Damang to incr ease production
efficiencies by capturing data in real-time and improving
the site’s reporting capabilities.
MICROMINE says Pitram is a mine control and
management reporting solution that provides the
tools needed to make informed production and
safety decisions, and run shifts more effectively.
Comprised of intuitive asset, personnel and material
tracking; safety; grade and stockpile management;
real-time viewing; planning and
optimization; and reporting and analytics capabilities,
Pitram offers mining operations of all sizes
a scalable and flexible solution for maximizing
profitability and driving continuous improvement.
CYTEC Industries have intr oduced its latest
ACORGA OR15 and ACORGA OR25 extractants
which are specifically formulated to provide
extra oxidative degradation protection.
Cytec’s Asia Pacific r egional sales manager
Shane Wiggett says, “Our ACORGA extractants
enable customers to limit the ef fects of high
70 | ASIA Miner | July/August 2011
Pitram Optimum is one of four solutions that
comprise the Pitram product suite, which provides
a unique upgrade path from the entry level
Pitram Report solution, to the Pitram Control Solution,
then to the fully automated Pitram Fleet
Manager and Pitram Optimum Solutions.
The super pit at the Damang Gold Mine in Ghana.
The implementation of Pitram Optimum at
Damang, an open-pit gold mine in southwest
OXIDATIVE DEGRADATION PROTECTION
manganese oxidation, r educe organic losses
and impurity transfer, and improve stage efficiency.
Ultimately, this results in an improved and
efficient extraction process with a higher yield.”
Cytec offers two extraction product families
- hydroxyoxime extractants under the name
ACORGA and organo-phosphorus deriva-
Ghana, began in early May 2011 and is expected
to be complete in mid-September. MICROMINE
has also been contracted by Gold Fields to provide
the wireless network that communicates, in
real-time, the information captured by Pitram.
MICROMINE’s business solution manager
Kyle van der Berg explains, “Because Pitram
Optimum integrates production planning and
optimization, Damang will see a significant
improvement with regards to the execution of
mining plans and the maximization of asset
utilization and efficiency.
“Damang’s management will be able to compare
actuals against plans and will have the ability
to correct deviations from plans. Also, through
intuitive equipment allocation, Damang can optimize
production, reduce wait time and execute
shift plans according to design or blending r equirements.
This will allow business targets to be
achieved at the lowest possible cost”.
tives under the name CYANEX.
The ACORGA NR and ACORGA OR series
expand Cytec’s line of solvent extraction products
for copper solvent extraction. They help
protect against degradation of solvent extractant,
particularly that caused by exposur e to
high nitration or oxidative conditions.
This is a significant challenge for mining companies,
many of which have more than $1million
invested in extractants that their pr ocess
uses over and over again. The Cytec products
result in substantial cost savings by r educing
extractant replacement costs and impr oving
the operational reliability of a processing facility.
CYANEX 600 allows mining companies to
extract valuable molybdenum from their copper
solvent extraction process. Molybdenum
also exists at varying levels in most or e
processed for copper extraction. By extracting
this metal during their copper solvent extraction
process, mining companies can gain an
additional revenue stream from their existing
operations. Molybdenum is in high demand for
use in alloys that are used in applications that
require high-strength, high pressure, high temperature
or high corrosion resistance. Cytec’s
CYANEX 600 allows selective extraction, purification
and concentration of molybdenum
from low concentration acidic streams.

Supplier-Product News_Layout 1 6/17/11 4:34 PM Page 71
CONVEYOR safety for moving bulk materials in
mining and manufacturing operations is critical
and there are few more dangerous environments
than conveyors. It’s reasonable for employees to
expect that the workplace will be clean and safe,
free of spillage from conveyors. If this is not a priority
and employees ar e expected to work in
poor conditions then staff turnover will be high
and worker safety will be compromised.
Kinder & Co’s K-Self Aligning Idlers for both
trough and return applications are used to
overcome belt miss-tracking. They are made
to suit the existing belt pr ofile and are constructed
using a centre pivot bearing.
The most common type is the ‘pivoting base
style and this type of K-Self Aligning Idler , in
both trough and return applications, automatically
provides belt centring. The outboard servo
rollers cause the idler frame to pivot as they
contact the belt edge and this swivel action
causes the belt to realign automatically.
When considering the ef fects of conveyor
miss-alignment, the consequences of required
manpower to corr ect the situation or the
spillage are significant.
Misaligned conveyor belts ar e potentially
the cause for many problems associated with
the conveying of bulk materials. This includes
material spillage and reduced life to conveyor
Product News
AVOID BELT MISS-TRACKING
Kinder and Co’s K-Self Aligning Idlers overcome conveyor belt miss-tracking.
belting and conveyor structure.
The goal in achieving pr oper and consistent
belt tracking is to ensur e safe, consistent,
trouble-free, economical conveyor
system operation.
July/August 2011 | ASIA Miner | 71

Supplier-Product News_Layout 1 6/17/11 4:34 PM Page 72
Supplier News
CONTITECH CHINA ACQUISITION
GERMANY’S ContiTech Conveyor Belt Group
has strengthened its position in China and
northern Asia through the acquisition of Tianjin
Xinbinhai Conveyor Belt Co. ContiTech plans to
expand the Tianjin-based company’s production
facilities and to produce its industrial conveyor
belts for Asian markets from the plant.
The transaction was finalized on May 28
when ContiTech’s mining world segment head
Claus Peter Spille and T ianjin Xinbinhai Conveyor
Belt’s future general manager Dr Hongbin
Dong signed the contracts closing the deal
with the local sellers. Both sides have agr eed
not to disclose the purchase price.
ContiTech Conveyor Belt Group’s general
manager Hans-Jürgen Duensing says, “This
move gives us a new market in an up-andcoming
region and strengthens ContiTech’s
position in China. W e already manufacture
conveyor belts for industrial applications at a
number of locations worldwide. Now we can
supply the Chinese market with pr oducts
made right in the country. We are set to further
expand the plant.”
Situated in the port city of T ianjin, 120km
southeast of Beijing, the plant pr oduces
mainly conveyor belts for metal and cement
processing and mining, as well as for power
plants, port operations and the automotive
industry. It has a workforce of around 150.
ContiTech, which is based in the norther n
A NEWLY refurbished geological laboratory in East T imor will boost
the fledgling country’s research capacity and help geologists better
understand its complex geology. A joint project involving The University
of Western Australia (UWA), East Timor’s National Petroleum Authority
(ANP) and State Secretariat for Natural Resources (SERN), and
Italian-based international oil and gas company Eni, the r enovated
building was opened during a cer emony in the capital, Dili.Pr oject
manager John Williamson, of UWA’s School of Earth and Envir onment,
was responsible for designing and implementing the pr oject,
with UWA professors Myra Keep and David Haig. Pr ofessor Keep
said the university had been asked to submit a pr oposal to turn the
existing lab into a hi-tech facility for rock preparation and petrology.
“The new lab boasts some of the latest technologies in preparing geological
materials and production of petrographic thin sections. It has
the capacity to operate as a one-stop shop for housing of geological
sample collections and their pr eparation on site for further analyses,”
she said. “The lab can be used for storing equipment and materials for
processing paleontological samples as well as curating and storing rock
72 | ASIA Miner | July/August 2011
German centre of Northeim, has been active
in China already for 30 years. ContiTech has
2100 employees in China and currently produces
hose line systems, vibration components,
air springs, surface materials,
conveyor belts, drive belts, coated fabrics,
and other components and systems locally
at nine modern production plants.
It is thus able to very successfully serve the
needs of automakers, machine and plant engineering
and construction, mining, the printing
industry, and rail transportation.
康迪泰克增强了在中国的地位
总部设在德国的康迪泰克输送带集团通过收
购天津鑫滨海输送带有限公司,巩固了其在
中国和亚洲北部的地位。康迪泰克计划扩建
这个天津公司的生产设备,为中国市场提供
用于工业领域的输送带。
收购合同于5月28日,由康迪泰克采矿业
务单元主管Claus Peter Spille和即将出任天
津鑫滨海输送带有限公司总经理一职的董宏
斌博士,以及卖方代表一同签订。双方协商
同意不透露收购价格。
康迪泰克输送带集团总经理Hans-Jürgen
Duensing表示,“通过此次收购,我们将在
新兴地区开发一个新市场,同时增强在中国
的市场地位。我们已在全球许多生产基地制
造用于工业领域的输送带。现在,我们能够
为中国市场供应本土生产的产品,并且将继
续扩建这一生产基地。”
EAST TIMOR LAB REFURBISHED
天津鑫滨海公司位于中国港口城市天津,距
离北京东南120公里。该公司生产的输送带主
要用于金属、水泥和采矿工业,以及发电厂、
港口作业和汽车工业。公司约有150名员工。
康迪泰克位于德国北部的中心诺特海姆
县,进入中国市场已经有30年的时间。康迪
泰克在中国拥有2100名员工,目前,公司
在中国建有九座现代化的生产工厂,分别生
产管路系统、振动元件、空气弹簧、表面材
料、输送带、传动带和涂胶布材料等产品。
能够全面满足汽车业、机器与设备制造业
与施工、建筑业、采矿业、印刷业以及铁路
运输业等领域的需求。
ContiTech will produce industrial conveyor belts for Asian
markets from its plant in Tianjin.
specimens collected during mapping and exploration trips.”
UWA has also helped train SERN technicians to operate the new facility
and equipment. Pr ofessor Keep said geological sample pr ocessing
was highly skilled and r equired specialist training and
constant practice.
Eni Timor Leste country representative Tony Heynen said the refurbishment
was the r esult of common inter ests between Eni T imor
Leste, SERN and ANP to build capacity in the petr oleum sector. He
said Eni held four production sharing contracts in the Timor-Leste Exclusion
Area and was committed to providing support for petroleum
infrastructure projects in the region. “Eni committed over US$1.1 million
to this project and we thank SERN and ANP for entrusting us with
this contribution and UWA for fully delivering the pr oject in time and
within budget.”
East Timorese company RMS Constructions carried out the r efurbishment
with more than two-thirds of the workforce employed locally
and sourcing 60% of goods from within East Timor.
FOR MORE INFORMATION ABOUT UWA: WWW.UWA.EDU.AU

Supplier-Product News_Layout 1 6/17/11 4:34 PM Page 73
ESCO Corporation, a designer, manufacturer and provider of highly
engineered wear parts and replacement products used in mining and
infrastructure development, has appointed Stonetec Industrial Supplies
as its distributor in Tasmania, Australia.
Located in Hobart, Stonetec Industrial Supplies is a leading local
supplier of mining and construction equipment, and is well positioned
to serve ESCO’s customers in this region.
ESCO Asia Pacific operations managing director Jeff Kershaw says,
“We are very excited to have Stonetec as a partner in Tasmania. With
more than 30 years of experience in the mining and construction industry,
the Stonetec team is known for its outstanding product knowledge
and superior customer service. They ar e a key addition to
ESCO’s global network of distributors in Australia.”
Stonetec will offer a complete range of ESCO Pr oducts including
SV2 and Ultralok ground engaging tools, Universal W ear Solutions
and ESCO blades following expiration of ESCO’s licence agreement
with Bradken on June 30.
ESCO is also expanding its presence in Australia with a new sales
and service location in the Hunter Valley region of New South Wales.
Jeff Kershaw says, “ESCO Rutherford represents a crucial step forward
in our efforts to directly serve Australian customers with quality
ESCO products and support services.”
When fully operational on July 1, 2011, the Rutherford location will
be home to local sales and service personnel, and will offer a full line
Supplier News
ESCO EXPANDS IN AUSTRALIA
of ESCO ground engaging tools, including the SV2 and Ultralok tooth
systems, buckets and related wear parts, as well as a complete range
of manganese crusher products, and bi-metallic wear buttons and
blocks. ESCO Rutherford will also sell the new ESCO truck bodies.
ESCO's director of sales for Australia Steve Lennard says, “ESCO
Corporation’s investment in a Rutherford facility provides a vital connection
to our customers in the Hunter Valley region. We look forward
to serving these key customers with r obust customer support and
immediate access to ESCO products and services.”
July/August 2011 | ASIA Miner | 73

Supplier-Product News_Layout 1 6/17/11 4:34 PM Page 74
Supplier News
ISAMILLS FOR PERU PROJECT
XSTRATA Technology’s IsaMill, the energy ef ficient
grinding technology, has been selected for
the Xstrata Copper’s Las Bambas Project. The
project, owned and operated by Xstrata Copper,
is in the Apurímac Region of southern Peru, and
will be one of the biggest greenfield copper mines
to come on stream globally in the next decade.
Xstrata Technology will provide three M3000
IsaMills in the regrind circuit of the new concentrator.
Each mill will be power ed by 1500kW
(2000hp) motors and will use ceramic media.
The new concentrator will be designed to tr eat
140,000 tonnes/day in a two line operation and
will initially produce 400,000 tonnes of copper
in concentrates annually. The IsaMills will be included
in the concentrate regrinding circuit and
like Xstrata Copper’s Antapaccay installation, will
incorporate Xstrata Copper’s standard concentrator
design concept.
Xstrata Copper Project Development South
America executive general manager Bob Drabik
says: “We have chosen IsaMill technology for our
Antapaccay and Las Bambas projects in southern
Peru because of the equipment’s energy ef-
74 | ASIA Miner | July/August 2011
ficiency and ability to deliver a precise size distribution
curve with minimal over-grinding which in
turn helps to reduce excessive circulating loads.
A primary consideration when developing our
new projects is to seek ways to minimize our environmental
footprint and IsaMill technology helps
us to achieve this due to its eficient energy usage
and smaller size than other comparable mills.”
Xstrata Technology’s IsaMills were retro-fitted to Anglo
Platinum’s Waterval project.
Xstrata Technology’s operation manager –
mineral processing Stephen Schmidt says the
IsaMills are being supplied as a full package,
where Xstrata Technology will be responsible for
the supply of the IsaMills, steelwork, feed and
discharge pumpboxes, as well as the new proprietary
IsaCharger media transfer system. Importantly
the M3000 IsaMills will include the new
High Flow design that permits high tonnage
throughput, and still delivers superior energy efficiency.
The commissioning of the mills is
planned for 2014.
Xstrata Technology will manage the pr oject
from its Vancouver office, as well as pr oviding
project support and commissioning services
from the Santiago office.
Meanwhile, Xstrata Technology has opened
its newest mineral processing base in London
as it expands its technology development and
marketing offering for the global mining, mineral
processing and metals extraction industries further
into Europe. Xstrata Technology’s Rakan
Rahbani will be based in London from where he
will focus on the European, Russian and Commonwealth
of Independent States (CIS) mar -
kets. The London base complements Xstrata’s
global network of offices in Chile, South Africa,
Canada and Australia.

Supplier-Product News_Layout 1 6/17/11 4:34 PM Page 75
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ADVERTISING INDEX
AEL Mining Services ......................37
Aimex 2011 ...................................15
Ashland Hercules Water Tech.........69
Atlas Copco...................................29
Baldor............................................FC
Banlaw ..........................................67
Banpu Public Co. Ltd.....................9
Coaltrans Australia.........................23
Edge 5...........................................74
ElectroMagnetic Imaging................31
ESCO Corp....................................BC
Eurotire, Inc....................................47
Fluidcon .....................................33, 35
Fugro Airborne Surveys..................71
Geometrica....................................13
GPX Surveys..................................74
Haulmax ........................................41
Hexindo .........................................74
Jeffrey Rader Corporation ..............73
Joy Mining Machinery ....................5
Linatex/Weir...................................11
Logantek .......................................73
Ludowici Australia Pty Ltd..............7
Marengo Mining Limited.................74
MHE Demag ..................................71
Mining Indonesia............................21
Mining Investment Fundamentals ...25
Ravensgate....................................57
Resourceful Events ........................27
Sandvik..........................................IBC
Steinert ..........................................51
Sustainability..................................73
The Redpath Group .......................53
Titan Wheels ..................................45
Triton Gold Limited.........................74
Vermeer .........................................IFC
Weir Minerals .................................3
World Mining Congress..................55
World Renewable Energy Congress...65
July/August 2011 | ASIA Miner | 75

Exploration_Layout 1 6/20/11 9:58 AM Page 1
Exploration
STRONG GOLD-COPPER INTERSECTIONS AT WONOGIRI
AUGUR Resources has intersected br oad
zones of gold-copper mineralization in diamond
drilling at Randu Kuning pr ospect within the
Wonogiri joint venture project in Java, Indonesia.
A recent intersection of 105.5 metr es @ 0.95
grams/tonne gold and 0.24% copper fr om 14
metres included 2 metres @ 6.06 grams/tonne
gold and 1.0% copper from 40.5 metres.
While this zone began at 14 metres, anomalous
gold was detected from surface which
indicates further mineralization may exist to
the west of the hole. Another hole drilled
about 60 metres to the west r eturned 59.1
metres @ 1.31 grams/tonne gold and 0.30%
copper from 8.2 metres.
Augur and joint venture partner PT Oxindo
have also received assays from the first 92.5
metres of another hole drilled to the west of
and below an earlier hole that r eturned 37
metres @ 1.23 grams/tonne gold and 0.44%
copper. The recent work detected two zones
of mineralization, including 32.5 metres from
5 metres @ 0.66 grams/tonne gold and
Core samples from the Wonogiri project of Augur Resources.
76 | ASIA Miner | July/August 2011
0.13% copper, and a further 43 metres from
49.5 metres @ 1.55 grams/tonne gold and
0.27% copper.
Additional mineralized areas exist around
Randu Kuning. Augur has escalated its
trenching program after identifying a number
of additional targets and is undertaking detailed
assessments of each with the aim of
drill testing the most promising zones during
the remainder of 2011. It is focusing initial
drilling at Randu Kuning with the intention of
estimating an initial JORC-compliant r esource
by the fourth quarter.
Wonogiri is in the Sunda Banda Arc which
also includes Newmont Mining’s Batu Hijau
and Elang projects and Intrepid Mines’ Tujuh
Bukit. It is 30km south of the provincial city of
Solo in central Java and easily accessible by
daily flights fr om Jakarta. Augur has an
agreement to earn a 51% interest after expenditure
of US$1.5 million by December 15,
2011, and can earn an 80% if it spends a further
US$2 million by the same date in 2012.
Weishan zones identified
FOUR major zones of mineralization have
been identified in an exploration concession
in Weishan County, Yunnan Province, China,
hosting gold, copper, lead-zinc, iron and antimony
mineralization. South American Iron &
Steel (SAIS) is set to purchase an 11.25% interest
in the concession for US$1.2 million.
In 2009 Weishan Feiste Mining Company
was granted the 48.15sqkm concession,
which was historically exploited by local artisanal
miners. Targeted costeaning, tunnelling
and drilling are expected to go ahead soon.
The Sichuan Metallurgical Geological Bureau
606 Survey Institute’ s previous work
program identified the zones – north and
south extensions of the Zacun gold mine
area, the Ganjiaping zinc-lead zone, the
Miaojiacun copper zone and a zone containing
antimony in the north-west.
Geochemical soil sampling was conducted
in the copper zone and the north and south
extensions to the gold zone, to mor e accurately
define the major mineralized systems.
The bureau also completed geological mapping
across the region surrounding the Zacun
gold region, where six gold mineralization
belts were defined.
Surface sampling and tunnelling has r evealed
near-surface gold mineralization. The
surface sampling, trenching and tunnelling
work along strike to the north and south of
the Zacun gold mine reveals highly prospective
gold mineralization.
The bureau initially defined a mineralization
zone 200 metres-long and 150 metres-wide
in the Ganjiaping zone. Costeans and tunnelling
revealed five mineralized belts, thr ee
of which have been further defined thr ough
shallow engineering work.
In the Miaojiacun zone, mineralization is in
the core of a fragmented zone, distributed
north-south on the short axis of an anticline.
The brecciated zone is over 40 metres wide.
Hydrothermal copper mineralization appears
as multiple narr ow veins and stockworks.
Massive chalcopyrite deposits have been observed
in numerous samples.
The transaction by ASX-listed SAIS involves
the purchase of 15% of the shares in
Hong Kong company Ample Success Investment,
whose sole asset is a 75% interest
in the concession.

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