Name of the Project
Winchester magnesium carbonate project.

Location
The project is located south of Darwin in the Northern Territory, Australia.

Client
Korab Resources.

Project Description
A prefeasibility study (PFS) has determined that a two-stage, bench-by-bench mining method is the best option to develop the Winchester project.

The PFS envisages a conceptual mine that could operate at various capacity levels – 375 000 t/y, 750 000 t/y and one-million-tonnes-a year run-of-mine capacities.

The capacity of the project will ultimately depend on any offtake and/or long-term sales agreements.

The study has assessed the capital expenditure and operating costs of the Winchester project supplying direct shipping ore crushed on site to 25 mm and screened to separate fines of -6 mm.

The output from the quarry will comprise crushed magnesite rock and a waste stream consisting of magnesite fines, dolomite, talc and waste rock, including polymetallic ore that will be stored on site. The study has suggested that mining operations initially be undertaken by a mining contractor.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
Capital costs of the project have been estimated between $2.4-million and $2.5-million, including a 30% contingency.

Duration
The timeframe for project development and production will depend on the actual availability of funding; completion of sales and/or offtakes of magnesium carbonate rock; securing the required government and regulatory approvals; access to transport and market factors, such as magnesium carbonate rock and energy prices and foreign exchange rates, which are outside the control of Korab Resources.

Latest Developments
Korab is finalising the estimates of revenues and various additional material factors such as haulage costs, port charges, interest, debt repayment, royalties and overheads.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Korab Resources, tel +61 8 9474 6166, fax +61 8 9322 6333 or email information@korabresources.com.au.