03/10/2008 - 15:23

Volatile market prompts Vital slowdown

03/10/2008 - 15:23

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Subiaco-based explorer Vital Metals Ltd said it will reduce the pace of work on the feasibility study on its Watershed project in an effort to conserve cash in the current financial climate.

Subiaco-based explorer Vital Metals Ltd said it will reduce the pace of work on the feasibility study on its Watershed project in an effort to conserve cash in the current financial climate.

 

Below is the full announcement:

Vital Metals Ltd (ASX Code: VML) has decided to reduce the pace of the work being undertaken by external contractors on the Watershed Feasibility Study in an endeavour to conserve cash during the current period of significant volatility in world financial markets.

The scale back is in relation to current work being undertaken on the tails dam, plant and pit design work.

The Board of Directors believes it prudent to slow down expenditure in relation to external contractors and to concentrate on refining the current resource model for the Watershed tungsten project, located in far North Queensland.

The final hurdle to project start-up is dependent upon Queensland Government EPA approval, which is not expected until March 2009. Such approval is the basis upon which mining leases are granted and as such, this prudent approach is not expected to alter the current timelines for the Watershed project.

It remains the company's intention to undertake a test program of a bulk sample from the Mt Mulgine tungsten deposit in the next month. The Mt Mulgine deposit remains an important part of our current on-going exploration program.

The company currently has approximately $2 million in cash on hand, which is adequate for the near term.

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