FINDERS RESOURCES LIMITED For ASX Market Release: 30 October 2015
Quarterly Activities Report - September 2015
HIGHLIGHTS
Wetar Copper Project
Copper cathode produced for the quarter was 425 tonnes. Sales were 406 tonnes at an average price of US$2.38/lb
Earthworks completed on a number of major structures
Coastal infrastructure construction progresses rapidly
25,000 t.p.a. copper cathode SX-EW plant remains on track for commissioning in Q1 2016
The 12 month rolling LTIFR and Injury Severity rates remain at zero
Corporate
A further US$35.0 million drawn under the Term Loan Facility and VAT Working Capital Facility
Hedge book (copper and diesel fuel) valued at US$30.6 million as at 30 September 2015
At 30 September cash on hand was AUD$38.9 million and unused project finance facilities were US$108.0 million
Managing Director Barry Cahill commented: 'It is pleasing to report the significant progress made on the expansion project during the quarter, which remains on budget and on track for production in Q1 2016. During the December quarter, the expansion project will really take shape as we advance into an intensive construction phase on the 25,000
t.p.a SX-EW plant.'
Contacts: Mr Gary Comb
Non-Executive Chairman
Mr Barry Cahill Managing Director Mr James Wentworth Chief Financial Officer
Phil Retter Investor Relations NWR Communications
phil@nwrcommunications.com.au
T: +61 407 440 882
Perth Office: Level 1, 5 Ord Street West Perth WA 6005 T: +61 8 6555 3996
F: +61 8 6555 3998
E: info@findersresources.com
ASX Code: FND
www.findersresources.com
WETAR COPPER PROJECT (FINDERS 72%)
3,000 t.p.a. SX-EW plant Production Report
The 3,000 t.p.a. plant operated as expected during the quarter as summarised in the following table.
Table 1: Wetar Quarterly Copper Production
Full Year 2014 Total | March 15 Quarter | June 15 Quarter | September 15 Quarter | YTD 2015 Total | ||
Ore stacked | t | 139,587 | - | 44,540 | 42,898 | 87,438 |
Grade | % Cu | 2.42 | - | 1.72 | 1.59 | 1.65 |
Metal stacked | t Cu | 3,385 | - | 764 | 682 | 1,446 |
Copper stripped | t Cu | 1,416 | 104 | 203 | 425 | 732 |
Copper sold | t Cu | 1,306 | 127 | 76 | 406 | 609 |
Copper sale price | US$/lb Cu | 2.88 | 2.63 | 2.77 | 2.38 | 2.48 |
Good progress was made on the Gold Pit Leach Pad (GPLP) during the quarter with 42,898 tonnes ore stacked. Stacking on the GPLP will be suspended after commissioning of the new crusher in October as the focus switches to stacking the KKV Heap leach Pad in readiness for the commissioning of the 25,000 t.p.a. SX-EW plant.
Temperatures on the GPLP heaps are within the required range and work continues on neutralising the acid in solution. The success of these efforts is reflected in the improved production performance (copper stripped) in the Table 1.
Image 1 - Stacking on the GPLP heaps
The new crusher arrived on site at quarter's end and was in the process of being commissioned on the KKV Heap Leach Pad during October. Commissioning involved crushing the bedding layer prior to ore stacking.
Image 2 - New crusher being commissioned on KKV leach pad
Copper cathode produced has continued to be exported as LME Grade A copper cathode without any issues during the quarter.
25,000 t.p.a. SX-EW plant Construction Progress
Mine construction and related activities advanced in accordance with expectations during the September quarter.
Earthmoving activity increased following mobilisation of a second earthmoving fleet, with Stormwater Pond Three advancing to the floor of the underdrainage. Once the underdrainage is installed, the dam walls will be shaped and compacted to allow installation of the liner.
The first cell of the KKV Heap Leach Pad, which is the largest pad adjacent to the 25,000 t.p.a SX-EW plant site, is lined and the new crusher is currently crushing the initial bedding layer.
Earthworks at Stormwater Pond Two have been completed and the pond is currently being lined. Once completed the pumps and necessary pipework will be installed and the pond will be ready for use.
The 25,000 t.p.a. SX-EW plant raffinate pond located adjacent to the plant site is lined and ready for use.
The final cut on the neutralisation pad is currently being undertaken prior to handover for the commencement for concrete work. The cut required widening of the main haul road to allow the pad to be enlarged. During the excavation of the open pit haul ramp onto the main access ramp a small quantity of additional ore was excavated from outside the ore reserve.
Image 3 - Lining of Stormwater Pond 2 commences
Pouring of concrete to establish the foundations for the 25,000 t.p.a SX-EW plant continued. Tank refurbishment has been completed on a number of the major tanks. The fibreglass contractor's focus has now turned to the construction of the new settler and the electrolyte recirculation tank. Refurbishment of the EW cells continues.
Image 4 - Foundations for the EW electrolyte circulation tank
The fibreglass contractor completed the refurbishment of the SX settler tanks and the lifting of these tanks into position on the SX site commenced during the quarter.
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