Gippsland Limited : Quarterly Activities Report
07/18/2012 | 03:53am US/Eastern
FOURTH QUARTER ACTIVITIES REPORT
Period: 1 APRIL - 30 JUNE 2012
Release Date: 18 JULY 2012
The Directors of Gippsland Limited ('Gippsland' or 'the Company') [ASX: GIP, FRA: GIX] provide the following Activities Report for the period April to June 2012, together with details of events up to the date of this report.
• First cassiterite shipment despatched from Abu Dabbab Alluvial Project;
• Concentrate sales contract signed with Malaysia Smelting Corporation Bhd;
• 5,000 metre reconnaissance RC drill programme to test coincident VTEM and gravity anomalies in Eritrea has commenced.
EGYPT - ABU DABBAB TANTALUM-TIN PROJECT Project Debt Finance
Discussions with major banks and sovereign funds located in the Middle East and North Africa region are ongoing.
Project Environmental Approvals
As reported previously, the updated Environmental Social Impact Assessment ('ESIA') has been submitted to the Shore Protection Agency and Ministry of Water and Irrigation for approval.
Abu Dabbab Alluvial Project
During the quarter, mining of the Wadi Quaria placer tin deposit continued and whilst the ramp up to full production has been slower than expected, the first product despatch from the mine site was completed on Thursday 28 June 2012.
Also during the quarter, Gippsland's 50% owned subsidiary, Tantalum Egypt JSC, entered into a contract with Malaysia Smelting Corporation Bhd for the sale of tin concentrates from the Abu Dabbab Alluvial Project.
It is likely that the project will receive its first revenue from the June shipment in August, allowing for transit time and payment terms, which is four months later than initially expected, and therefore, the projected revenues used to evaluate the economics of the project, as previously disclosed, will be delayed by a similar period.
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Details of the first shipment are presented in Table 1.
Table 1. Shipping Details
Despatch date from site
28 June 2012
Total wet mass
Provisional grade, %Sn (*)
* Grade of 46% was originally determined by averaging 9 Niton hand-held XRF readings for each of 12 bags containing 750kg concentrate/bag, and rounded down to zero decimal points. The final grade per the above table was determined by the independent superintendence laboratory using XRF.
ERITREA (ADOBHA PROJECT)
Gippsland's 100% owned subsidiary Adobha Resources (Eritrea) Pty Ltd holds the Adobha Exploration Licence covering 2,100 km2 and the Gerasi South Exploration Licence covering 100 km2 in the highly prospective Adobha region in the State of Eritrea.
After successfully completing a programme of airborne geophysics followed-up with gravity surveys, geochemical surveys and geological mapping, the company identified a number of favourable targets for drill testing. The drilling programme, which was expected to have commenced in May, was initially delayed due to the Eritrean authorities changing the visa requirements for foreign drillers and technical workers entering the country, and further delayed when a drilling rig being mobilised to site was washed off a causeway by a flash flood. The Company is pleased to advise that there was no harm to Gippsland employees or contractors as a result of the incident, and there is no repair cost to Gippsland arising from the incident.
A replacement drilling rig was contracted and on 6 July the Company announced that a drilling rig was being mobilised to the Adobha Project site to commence drilling the Versatile Time Domain Electro Magnetic system ('VTEM'), gravity and geochemical targets. Despite some logistical difficulties caused by the start of the wet season the drilling commenced on the 13 July and is progressing well.
The drilling programme will involve up to 5,000 metres of reconnaissance reverse circulation drilling to test high-priority targets following the completion of a gravity survey within the Adobha Project. The gravity survey was conducted over twelve electromagnetic anomalies including six high and medium to high ranked electromagnetic anomalies previously identified from an airborne survey flown by Geotech Airborne Limited using a VTEM during 2011. The gravity survey results were particularly useful in more closely defining the VTEM anomalies due to the difficulty in distinguishing VTEM anomalies related to graphitic rock types.
The drilling will comprise a series of inclined holes to depths of 60 to 80m to test each of the anomalies. A Niton portable XRF analyser has been purchased to enable onsite base metal determinations to be made during the course of the drilling in order to optimise the programme.
Geological mapping and drainage geochemical sampling is continuing in other parts of the project area.
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Sale of Unmarketable Parcels of Shares
As part of a capital management programme, during the previous quarter Gippsland established a sale facility for unmarketable parcels of Gippsland shares.
The sale process in relation to the unmarketable parcels was completed in July and the sale proceeds have been sent to the holders of the unmarketable parcels.
Ian Gandel Chairman Gippsland Limited
For further information, please contact:
T: +61 8 9340 6000
In accordance with Listing Rule 5.6 of the Australian Stock Exchange Limited, the geological information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on data compiled by Dr John Chisholm, a Fellow of The Australasian Institute of Mining and Metallurgy. Dr Chisholm has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Chisholm consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
3 GIP ASX Qtrly Activities April - June 2012
Received on Thu Jul 19 2012 - 22:28:04 EDT