Name and Location
Mba Delta iron sands project, Viti Levu, Fiji.

Client
Amex Resources.

Project Description
The project has an indicated Joint Ore Reserves Committee-compliant resource of 220-million tonnes at 10.9% iron.

The project covers more than 132 km2 at the mouth of the Ba river, on the north-western coast of Fiji’s main island, Viti Levu. The resource occurs as a simple flat-lying blanket of fine to coarse magnetite-bearing sand, about 15 km long and up to 4 km wide. It is developed from the surface to depths of up to 9.4 m and averages 4.3 m in thickness. Geological and mineralisation continuity of the deltaic sand deposit is excellent and much of the surface of the resource is exposed at low tide.

The iron sands operation is planned to produce an initial 750 000 t/y of magnetite concentrate and will act as a stockpiling area for the magnetite concentrate prior to final treatment and export.

The project will consist of a dredging operation adjacent to the mouth of the Ba river, a floating concentration plant, barging of the iron sand concentrate to Lautoka port, washing the concentrate at the port to remove sea salt and exporting the product in Handymax vessels.

The project is expected to have a 20-year mine life.

Value
The project is estimated at $60-million.

Duration
Production is expected to start in September 2014.

Latest Developments
Amex has executed an $80-million funding agreement to fund the develop its Mba Delta iron sand project.

The facility comprises a $30-million loan and an underwritten agreement for a further $50-million during the 18-month construction period of Mba Delta.

The facility has been engaged primarily to fund a plant and design-build Fédération Internationale Des Ingénieurs-Conseils (FIDIC) contract, which Amex hopes to sign this month.

The $30-million loan will be drawn down, following the signing of the FIDIC contract, at an interest rate of 18% a year. The loan will have a 12-month term, with a further 12-month option at Amex’s discretion.

Interest for the initial term will be paid upfront and, in addition, Amex will issue ten-million fully paid ordinary shares and ten-million unlisted options at an exercise price of 80c each for a three-year term.

The underwritten agreement will have a two-year term and an interest rate of 18% a year and, should alternative finance be sourced by Amex during the term, no break fee will be payable.

Key Contracts and Suppliers
ProMet Engineers (prefeasibility study and bankable feasibility study); Allied Mineral Laboratories (metallurgical testwork); and Southern Mining Consultants (initial financial modelling).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Amex Resources tel +618 9480 0455, fax +618 9321 0320 or email email info@amex.net.au.