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 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. These factors include magnesium carbonate rock and energy prices and foreign exchange rates, which are outside the control of Korab Resources.

Latest Developments
Korab Resources has announced plans to fast-track the development of the Winchester project, with the company to divest of some of its other assets.

Korab in March this year announced a review of its Western Australian and Ukrainian operations, which considered joint ventures (JVs), as well as partial or outright sales.

The company has entered into discussions with a number of parties regarding the sale of its Bobrikovo gold/silver mine, the sale of its Pilbara conglomerate assets, and the sale or JV of its Mt Elephant project.

Korab has also added its Geolsec phosphate project, in the Northern Territory, to the review pile, with the aim of subleasing the quarry to another operator while retaining ownership of the project and the mining lease on which it is located.

The divestment of its other assets will allow for Korab to focus its resources on the Winchester project.
 

Korab will also place up to four-million shares, priced at 5c each, to raise capital to fast-track key milestones in the development of the Winchester project, including the preparation of a final mine management plan, arranging debt funding, and securing offtake partners for the direct shipping ore output from the project.

The remaining funds will be used to reduce the company’s liabilities, and for general working capital.

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.