Gippsland raises funds for Egyptian tantalite venture
Australia’s Gippsland posted a pro-rata non-renounceable entitlement issue to shareholders of 15,671,393 fully paid up ordinary new shares in the firm, raising a sum of $470,141. The funds raised shall in the main go towards funding the bankable feasibility study (BFS) currently being conducted upon the Abu Dabbab tantalite feldspar project in Egypt.
The company's 40 million ton Abu Dabbab project is located adjacent to the western shore of the Red Sea. The project is the subject of a 50:50 joint venture agreement between Gippsland and the Egyptian Geological Survey & Mining Authority, a state agency of the Egyptian Government.
The BFS, which is being undertaken by the engineering group Lycopodium, is proceeding to expectations and is progressively producing encouraging results. During the quarter, the scope of the BFS was expanded to consider the production of 800,000 tons of ceramic grade feldspar, a co-product to the tantalum pentoxide.
The BFS is proceeding based on an initial annual throughput of one million tons per annum. The initial metallurgical testwork programme produced encouraging results with respect to the recovery of ceramic grade feldspar and the metal oxides of tantalum, niobium and tin metal.
Some 80 percent of the ore mined will be converted to ceramic grade feldspar. The project's operation costs are likely to be well below those incurred by present tantalum producers both within Australia and elsewhere.
The Company has received strong interest from European ceramic manufacturers regarding the purchase of the feldspar output from Abu Dabbab. The Company has appointed an experienced feldspar sales agent to negotiate on the company's behalf in relation to these feldspar pre-sale agreements. — (menareport.com)
© 2003 Mena Report (www.menareport.com)