03/09/2008 - 06:37

Globe Metals 'extremely positive'

03/09/2008 - 06:37

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West Perth-based Globe Metals & Mining has announced the commencement of a pre-feasibility study on its 100 per cent-owned multi-commodity (niobium, uranium, tantalum and zircon) Kanyika Project in Malawi.

Globe Metals 'extremely positive'

West Perth-based Globe Metals & Mining has announced the commencement of a pre-feasibility study on its 100 per cent-owned multi-commodity (niobium, uranium, tantalum and zircon) Kanyika Project in Malawi.

The pre-feasibility study began following "the extremely positive" recently announced results of the scoping study, carried out by Coffey Mining, which indicate that the Kanyika Project has the potential to become a very profitable operation with at least a 20-year mine life.

Globe Metals & Mining's managing director Mark Sumich said: "The commencement of...work marks the next stage in our rapid development of the Kanyika Project."

"It is a very large deposit; the scoping study confirmed that it has the potential to be very profitable, so we are moving immediately on to the next step.

"The resource upgrade drilling and metallurgy are already underway, so this announcement formalises our commencement of the pre-feasibility study."

The company believes the project could generate $US3 billion in revenue and $US1 billion in cash flow over the expected 20-year life of the mine, at 4,000 tonnes a year Nb metal production.

Mr Sumich anticipates high operating margins of about $US93 million in one year, averaging $US77 million for the life of the mine.

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