PERTH, Western Australia, Sept. 28 /CNW/ - Tiger Resources Limited (ASX / TSX: TGS) ("Tiger" or the "Company") is pleased to announce the issuance today of the Company's annual report for the year ended 30 June 2009, including the Company's consolidated audited financial statements. An Operations Review Summary is set out below, and the full text of the report is available on the Company's website www.tigerresources.com.au and under the Company's profile on SEDAR at www.sedar.com.
Operations Review Summary
The Company's principal assets are the Kipoi and Luputo (Sase) Projects, located in the Katanga Copper Belt of the Democratic Republic of Congo.
The Company has a staged development strategy for the Kipoi Project. Stage 1 involves processing high grade oxide copper mineralisation through a heavy media separation ("HMS") plant to produce the equivalent of 116,000 tonnes of copper (Cu) in concentrate over a three year period. Tiger is targeting mid 2010 as the date for commencement of 25% Cu concentrate production.
Stage 2 of the development is proposed to be the construction of a Solvent Extraction and Electrowinning ("SXEW") plant to produce cathode copper. The intention is to complete construction of a 25,000tpa (scaleable) SXEW by 2014. The expanding mineral resource base at Kipoi has the potential to support a 100,000tpa SXEW production capacity.
Significant copper drilling intersections from an initial diamond drilling programme at the Sase Project were also reported during the year. Mineralisation has been identified over a strike length of 600m that varies in width between 50 and 200m. Oxide mineralisation extends to 120m in depth and overlies deeper sulphide mineralisation. Sase is one of a number of copper mineralised zones the Company has discovered within the Lupoto Project. Lupoto is 100% owned by Tiger and is located approximately 15km to the south of the Kipoi Project.
Significant Milestones - Kipoi Project Development
Stage 1 Revised Definitive Feasibility Study
Arccon Mining Services ("Arccon") completed an independent review of a revised Stage 1 feasibility study. The proposed Stage 1 development at the Kipoi project now comprises an HMS and spirals plant treating 900,000 tpa of high grade +5% Cu oxide and transition ores to produce approximately 116,000 tonnes of contained copper in concentrate over a period of approximately three years.
Capital expenditure for this development is estimated by Arccon to be USD$30 million. Arccon have estimated cash operating costs to be in the order of USD$0.34/lb. At a copper price of US$2.50/lb the project NPV (at 10%) is USD$96.5 million, IRR is 130% and project cash flow is USD$146 million. The Company is investigating the possibility of further improving the cash flow of Stage 1 by producing a cobalt concentrate.
The Company is planning for the US$30 million Stage 1 development of the Kipoi Project to be primarily debt funded.
In September 2009 the Company mandated Nedbank Capital (the Investment Banking Business of Nedbank Group Limited), to act as exclusive arranger of an Export Credit Insurance Corporation of South Africa Limited ("ECIC") supported US$16 million debt facility, for use in the Stage 1 development. The Company has also received indicative debt (up to US$15 million) and offtake proposals from metal trading groups seeking to secure rights to acquire the copper concentrate to be produced.
The DRC government review of Kipoi Mining Contract was completed in January 2009 after a revised agreement was signed with La Générale des Carrières et des Mines ("Gécamines", a DRC State-controlled mining company) in respect of the contractual arrangements governing the Kipoi Project. This brought to a conclusion the review by the Government of the DRC of the contractual arrangements governing the Kipoi Project.
Company website: www.tigerresources.com.au
Scientific or technical information in this report has been prepared by or under the supervision of Mr David Young, Managing Director and a full-time employee of the Company and a member of the AusIMM. Mr Young has sufficient experience which is relevant to the style of mineralization under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code and to qualify as a "Qualified Person" under NI 43-101. Mr Young consents to the inclusion in this news release of the matters based on his information in the form and context in which it appears.
Caution Regarding Forward Looking Statements and Forward Looking Information: This news release contains forward-looking statements and forward looking information, which are based on assumptions and judgments of management regarding future events and results. Such forward-looking statements and forward looking information, including but not limited to those with respect to the development of a Stage 1 mining, HMS and spiral system operation and a Stage 2 SXEW plant at the Kipoi Project, and its plans to secure project finance for the Stage 1 Project, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual market prices of copper, cobalt and silver, the actual results of current exploration, the availability of debt financing for a company that does not have any producing properties, the volatility currently being experienced in global financial markets, the actual results of future mining, processing and development activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's Annual Information Form, under the heading "Risk Factors". The Company's Annual Information Form is available under the Company's profile on SEDAR at www.sedar.com.
SOURCE Tiger Resources Limited
For further information: For further information: in respect of the Company's activities, please contact: David Young, Managing Director, Tel: (+61 8) 9240 1933, Email: firstname.lastname@example.org; Reg Gillard, Chairman, Tel: (+61 8) 9240 1933, Email: email@example.com; Patrick Flint, Director, Tel: (+61 2) 9212 7999, Email: firstname.lastname@example.org