Olympia gives green light to Harts Range project

Herdsman-based Olympia Resources Ltd has given the green light to the development of its Harts Range abrasives project north of Alice Springs.

The company said it is in discussions with financiers.

Below is the full announcement:

The Board of Olympia Resources Ltd (ASX: OLY) has approved the development of the world class Harts Range Abrasives Project and is currently in discussions with financiers to secure a funding package.
Once funding has been finalised, Olympia will complete
detailed design work and begin construction as soon as possible. Olympia anticipates commencing production from Harts Range in late 2007.
Olympia's Managing Director Peter Gazzard stated he was very pleased to announce the go ahead for Harts Range which will provide Olympia with a regular cash flow for over 20 years, adding to planned cash flows from Olympia's Kalimantan and Keysbrook projects.
"The size of the Harts Range ore resource and the relatively modest planned mining rate of 125 Tonnes Per Hour (tph) provide possibilities of expanding operations to increase cash flow at a later date, as market conditions allow," Mr Gazzard said.
The Board's decision was based upon a positive feasibility study which shows a total net cash flow before interest and tax of $89 million over the 23 year project mine life.
It is estimated that the Harts Range Projects will produce 40,000 tonnes per year of garnet and 33,000 tonnes per year of Garnetblende abrasives.
The initial capital cost of the project is $9 million which will be used to develop the mine site and construct a processing and packaging plant on the Harts Range site.
The feasibility study indicates a capital pay back period of 3.25 years.
The Harts Range project is situated 120 km North East of Alice Springs in The Northern Territory of Australia on the Plenty Highway.
Olympia has obtained all approvals required to begin operations at Harts Range including an Indigenous Land Use Agreement (ILUA), Mining Lease and Environmental Approval.