Gippsland announced resource estimated and reserve at its Abu Dabbab and Nuweibi prospects. At Abu Dabbab, Mineral Resources (Measured+Indicated+Inferred) is estimated at 44.5 million tonnes gradind 250 d.t Ta2O5 and 0.09 million tonnes Sn.
Gippsland has completed a definitive feasibility study ("DFS") for Abu Dabbab based upon a mill feed rate of 2 million tonnes per year producing in excess of 650,000 pounds of tantalum pentoxide ("Ta2O5") which will make it the world's largest tantalum miner. The Abu Dabbab project will also produce approximately 1,530 tonnes of tin metal per year. Within approximately 2 years of start-up, the project is also scheduled to produce in the order of 1.5 million tonnes per year of ceramic grade feldspar which in turn will result in a tailings stream of less than 0.5 million tonnes per year greatly minimising the environmental impact of the project. Tantalum Egypt has executed a 10-year offtake agreement with the German tantalum refiner HC Starck GmbH for the supply of 600,000 pounds of tantalum per year in the form of a 20% Ta2O5 concentrate. Negotiations are presently in progress to adjust the offtake agreement to reflect the delivery of a high-grade synthetic concentrate ("SynCon") having a Ta2O5 content of >50%.
Gippsland announced the completion of a scoping study in relation to an extensive alluvial tin deposit contained within the Abu Dabbab tantalum-tin-feldspar project in Egypt. Based on exploration data gathered during the early 1970s and using a high tin cut off grade of 1.2 kg/m3, the company has estimated an inferred resource of 438,000 m3 of alluvium containing in excess of 760 tonnes of recoverable tin metal within the alluvial tin deposits explored.
Based upon the present tin price of US$11,500 per tonne, the scoping study indicated that the alluvial tin has the potential to generate an additional US$8.7 million revenue during the one year it will take to process the material and in doing so will generate a net cash bonus for the overall Abu Dabbab project of approximately US$5.1 million during the first year of operation.
Advanced or Above