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
The Dolphin project has ore reserves of 4.43-million tonnes at an average grade of 0.92% tungsten.

The project entails the development of the Dolphin mine and the construction of a comminution-gravity-floatation scheelite processing facility on site.

The project will mine and process an estimated 400 000 t/y of ore for 14 years to produce an estimated 3 500 t/y of tungsten concentrate.

Ore will be crushed and processed, primarily through a gravity circuit supplemented with a simple flotation circuit. Once in production, the processing plant may be expanded to increase plant recovery.

The project has the option to double the mine life through mining existing underground resources.

Potential Job Creation
The project could create up to 90 full-time jobs during construction and a further 55 ongoing full-time jobs on King Island.

Net Present Value/Internal Rate of Return
The project has an estimated pretax net present value, at an 8% discount rate, of A$241-million and  an internal rate of return of 43%, with a payback of 2.25 years.

Capital Expenditure
Startup capital is estimated at A$72.2-million.

Planned Start/End Date
The project is expected to take 15 months to complete, with mining scheduled to start 12 months after the final investment decision.

Latest Developments
The Tasmanian government will provide King Island Scheelite with a A$10-million funding package over a ten-year term to support the development of the Dolphin tungsten project.

The loan remains subject to formal loan and security documentation being agreed on and executed, and includes a number of conditions that must be satisfied prior to the release of funds, which is consistent with finance facilities of this nature, including all other capital raising necessary to deliver the project.

Key Contracts, Suppliers and Consultants
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).

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