Perth-based RMA Energy Ltd has completed the acquisition and set up requirements at its tin and copper projects in North Queensland, putting it on track for production in the September quarter.
Perth-based RMA Energy Ltd has completed the acquisition and set up requirements at its tin and copper projects in North Queensland, putting it on track for production in the September quarter.
The full text of an RMA announcement is pasted below
9 August 2007 RMA on-track for Q4 production from highly prospective copper/ tin project with annual revenue expected to be approximately A$29m.
Key points:
- Rotary Air Blast ("RAB") drilling program to target significant JORC compliant tin resource at project nearing completion;
- Company to conduct bulk sampling of its tin and copper tailings stockpiles at project, to test the metallurgy and grade, in next six to eight weeks;
- RMA on track to commence `low impact' tin and copper production from its 100% owned McCauley Creek and Coane Range Projects in northern Queensland, in Q4 2007;
- Annual revenue from these operations expected to be approximately $29m;
- All necessary site infrastructure is in place and production plant nearing completion, in readiness for bulk sampling and future production;
Western Australian based diversified resources company RMA Energy Ltd ("RMA" or "the Company") has completed all acquisition and set up requirements at its 100% owned McCauley Creek and Coane Range Projects in northern Queensland in readiness for the commencement of tin and copper production in Q4, 2007.
We are targeting a significant resource, which the company is looking to prove up following the current RAB drilling program that is nearing completion.
Planned production will be in line with the requirements of a "low impact licence" which allows for the production of 1000 tons of metal per annum.
On current prices and at this tonnage RMA expects to yield an annual cash flow of approximately A$29m.
In preparation for this production RMA has procured all necessary plant and equipment and is finalising the fit-out of its processing plant, which is due for completion by October. Experienced contractor Harrington's has been secured to provide crushing and separation services as well as haulage to the processing plant.
In addition, the Company has secured all required regulatory approvals related to operating the processing facility.
RMA is now waiting the granting of its low impact mining licence for these Projects, which it expects to have awarded in the next eight to ten weeks.
The Company has made rapid progress towards achieving its objective of generating a sustainable cash flow since listing on the Australian Securities Exchange ("ASX") just two months ago.
RMA managing director Clive Triplett said the Company had made startling progress in pursuit of its production goals and to have all plant and equipment, and regulatory approvals in place at such an early stage underlined RMA's commitment to having the advanced projects in production by the end of 2007.
"We will soon complete the RAB drilling program to prove up a significant tin resource, and eagerly await the full results of this program." Mr Triplett said.
Prior to gearing up to maximum production, RMA will conduct bulk sampling of its tin and copper tailings stockpiles to test the metallurgy and grade, as well as the capabilities of RMA's processing plant.
"There is currently a significant supply-demand imbalance in the global tin market which has seen the tin price increase to a record high of almost A$20,000 per metric tonne," Mr Triplett said.
"Our aim is to be in production in Q4 this year so we can take full advantage of this imbalance for the benefit of our shareholders and the company.
"Under the terms of a `low impact' mining license we are able to extract 1,000 tonnes each of copper and tin per annum, which would gross us an annual revenue of approximately A$29 million.
"This would put the company in a very strong financial position in only its first year of trading." In the longer term RMA plans to utilise the cash flow from the McCauley Creek and Coane Range Projects to fund further drilling and development of its other highly prospective uranium and coal projects in Queensland.
