Name and Location
Perkoa zinc project, Burkina Faso.

Client
Blackthorn Resources, GlencoreXstrata and the government of Burkina Faso.

Project Description
The project involves the development of the first zinc mine in West Africa.

The project is located within the Proterozoic Boromo greenstone belt, about 120 km west of Burkina Faso’s capital, Ouagadougou, and has a Joint Ore Reserves Committee-compliant probable ore reserve of 6.3-million tonnes at a mine head grade of 13.9% zinc (at a 9% zinc cutoff), equating to 873 400 t of contained zinc metal.

The project includes:
• the extraction of silver and lead concentrate in a separate processing circuit by bulk mining the hanging-wall zone of the deposit;
• opencut mining of near-surface mineralisation, situated along strike and adjacent to the underground mining area; and
• increased throughput of the processing plant from 720 000 t/y to 1-million tonnes a year.

Value
$260-million.

Duration
The official opening ceremony of the Perkoa zinc project was held on site on January 19, 2013.

Latest Developments
Following its announcement in April this year, Blackthorn Resources has entered into a binding definitive sale and purchase agreement to sell its remaining 27.3% equity interest in the Perkoa project and its Burkina Faso exploration licences to wholly owned subsidiaries of GlencoreXstrata.

Blackthorn Resources will receive $12-million cash as consideration for the sale; $10-million for its interest in the Perkoa project and $2-million for the exploration licences.

In addition, Blackthorn will not be required to contribute its $9-million share of the $30-million working capital funding requirement for the project announced in August 2013.

The transaction is subject to the approval of Blackthorn Resources' shareholders.

If Blackthorn’s shareholders have not approved the transaction in 90 days, following the date of the agreement, or such later date as Blackthorn Resources and Glencore may agree, either Blackthorn or Glencore may terminate the agreement. Otherwise, completion of the share transaction, including payment of the $10-million purchase price, is to occur two business days following satisfaction of the conditions precedent, one of them being Blackthorn Resources' shareholders approving the transaction.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
The cost of the project has escalated from $140-million to $180-million.

Contact Details for Project Information
Blackthorn Resources, tel +226 50 31 66 35, fax +226 50 31 70 97 or email info@blackthornresources.com.au, or MD Scott Lowe, tel +61 2 9357 9000.
Glencore Xstrata, tel +41 41 709 2000 or fax +41 41 709 3000.