Name of the Project
Dolphin opencut tungsten project.

Location
The project is located on King Island, Tasmania.

Project Owner/s
King Island Scheelite.

Project Description
A feasibility study has derisked the Dolphin project technically and commercially.

At a 0.2% tungsten cutoff, the project contains three-million tonnes of Joint Ore Reserves Committee-compliant probable reserves at an average grade of 0.73% tungsten.

The feasibility study details the development of the Dolphin mine and construction of a comminution-gravity-floatation scheelite processing facility on site.

The study envisages that the project will mine and process an estimated 400 000 t/y of ore for eight years to produce an estimated 3 500 t/y of tungsten concentrate.

This concentrate will be sold into a market with strongly growing demand and constrained supply.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pregeared and pretax net present value, at an 8% discount rate, of A$146-million and an internal rate of return of 47%, with a payback of 2.75 years.

Capital Expenditure
Capital investment of A$65-million.

Planned Start/End Date
Production commissioning is expected to take place within 15 months after achieving financial close.

Latest Developments
None stated.

Key Contracts and Suppliers
Xenith Mining, Gekko Systems and other independent consultants (feasibility study and revised mineral reserve estimate); Resource and Exploration Geology (resource and reserve estimation); Xenith Consulting (mine planning and cost estimation); PSM (geotechnical assessment, tailings storage facility, membrane wall); ALS (metallurgical testwork); Asther (metallurgical testwork, plant design and cost estimation); Gekko (plant design and cost estimation); e3 planning (environmental surveys and permitting application); Bill Meynink (tailings storage facility); GHD (tailings storage facility); BR Design (site infrastructure design and cost estimation); SEMF (waste rock assessment); Pit and Sherry (waste rock disposal study); Consulting Environmental Engineers (coastal process study); Ernst Friedlander (membrane wall design); ARGUS (marketing and financial analysis); and Brendan Walpole (financial model).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
King Island Scheelite, tel +61 2 86622 1402 or email info@highlandcopper.com.