Kalgoorlie Boulder Resources expands gold scoping study

Kalgoorlie Boulder Resources Ltd has commissioned engineering group Downer EDI , Element CMC and J Macintyre and Associates to conduct a number of additional technical studies for incorporation into its Norseman Gold Project scoping study.

Kalgoorlie-based KBRL said the expanded scoping study, due to be completed in March, would build on the previous exhaustive pre-feasibility studies carried out by Kinross Gold in 2001.

J Macintyre and Associates has been commissioned to re-evaluate previous work for Kinross Gold with the previous pre-feasibility studies, while Element CMC has been commissioned to manage the scoping study process.

Kinross commissioned extensive process plant design and capital cost studies with JR Engineering back in 2001, and because the company has since been acquired by Downer EDI, Downer has been retained to re-evaluate the previous capital costing studies in light of recent rises in materials and labour costs.

KBRL said a detailed feasibility study at Norseman was expected to be completed in the December 2008 quarter.

The Norseman Gold Project covers 124 square kilometres of the South Norseman-Wiluna Greenstone belt of the Eastern Goldfields.

The full KBRL announcement appears below:

Kalgoorlie Boulder Resources Ltd (ASX:KAL) is pleased to announce that the Company has commissioned Downer EDI Engineering group, Element CMC and J Macintyre and Associates to conduct a number of additional technical
studies for incorporation into the Norseman Gold Project scoping study.

This expanded scoping study will build on the previous exhaustive Pre- Feasibility studies carried out by Kinross Gold in 2001, which confirmed that the Mt Henry and Selene ore-bodies could be mined and milled in a stand-alone
process plant economically.

Although the project did not at that time meet the investment criteria of Kinross Gold at the then prevailing gold price of A$550/oz, the gold price has since strengthened significantly.

The spot price of gold yesterday reached a record of US$990.40 per ounce, or A$1054.35 per ounce, and has risen approximately 45 per cent over the last six months.

This fundamental strengthening of the gold market will have a significant positive impact on the economics of the Norseman Gold Project.

The use of the previous studies will mean that significant components of the scoping study will be estimated at pre-feasibility study or better levels of accuracy.

This will facilitate completion of the final feasibility study planned for later this year.

Kinross commissioned extensive process plant design and capital cost studies with JR Engineering, in 2001. JR Engineering has since been acquired by Downer EDI, and so has been retained to re-evaluate the previous capital
costing studies in light of recent rises in materials and labour costs.

Downer EDI are one of the largest mineral process plant designers and builders in Australia having been involved with the construction and commissioning of some of the largest gold process plants in Western Australia.

The Norseman process plant design incorporates a Carbon-in-Leach plant that was designed specifically for the Mt Henry and Selene ore types but which also allows flexibility to process other ore-types as well.

J Macintyre and Associates has been commissioned to re-evaluate previous work for Kinross Gold with the previous Pre-Feasibility studies, including the metallurgical test-work and reports that formed the basis for the design work by
JR Engineering. J Macintyre and Associates will conduct the process cost studies, based on the original JR Engineering process plant design and will update the labour and consumable costs with current prices.

J Macintyre and Associates have been involved in the metallurgical and mineral processing industry for several years conducting studies in Gold and Nickel processing plants for several goldfields companies.

Element CMC has been commissioned to manage the scoping study process, having been involved with a number of major project studies, including process facilitation work and Feasibility study for Iluka Resources Ltd mineral sands plant upgrade.

The team at Element CMC has also assisted a number of major gold mining companies to conduct feasibility studies and process plant upgrades.

These appointments follow the significant progress achieved by Kalgoorlie- Boulder Resources since it took over the Norseman project last year.

In that time, the company has significantly upgraded the JORC resources at both the Mt Henry and Selene deposits, increasing the combined resource inventory by over 40 per cent to 1.44 Moz from 1 Moz using a more robust cut-off grade of 1.0 gram per tonne.

These upgraded resources will form the basis for the scoping study financial model, which will incorporate current financial constraints and quantify the economic potential of the project.

This scoping study is designed to determine the best path for the economic development of the project in the future. The study, which is expected to be complete by the end of this month, will lead to a formal feasibility study
expected to be completed in the December Quarter of 2008.

Any further drilling at Mt Henry and Selene will be undertaken based on the completion of economic studies into the mining of these deposits.

The Scoping study is due to be completed in the first Quarter of 2008, which will then lead to a Full Feasibility study.