Gippsland Limited (GIP) – First Quarter Activities Report
Gippsland Limited (GIP) – First Quarter Activities Report
Highlights
ABU DABBAB
• 11% total Mineral Resource increase from 40 to 44.5 million tonnes
• 30% increase in total Measured and Indicated Resources
• Increase in tantalum grades
• Doubling of Ore Reserves from 14.6 to 30.24 million tonnes
• Confirmation of high grade 40% tantalum product
• Confirmation of low radioactivity tantalum product
• Environmental Impact Assessment Study update
• Receipt of EPCM offers
• Project funding progress
The prime assets of the company are the world-scale 44.5 million tonne Abu Dabbab and the 98 million tonne Nuweibi tantalum deposits located in Egypt. The Company, in which the International Finance Corporation part of the World Bank Group is a substantial shareholder, has completed a definitive Feasibility Study based upon a design mill-feed rate of 2 million tonnes per annum. It is scheduled to produce 650,000 pounds of tantalum pentoxide (Ta2O5), plus 1,530 tonnes of LME grade tin metal per year.
HEEMSKIRK TIN PROJECT TRANSACTION
During the Period, Gippsland and Stellar Resources Limited announced that Agreement has been reached to merge their respective Joint Venture interests in the Tasmanian Heemksirk Tin project (formerly known as the Zeehan Tin project) into Stellar’s subsidiary Columbus Metals Limited.
SUCCESSFUL PLACEMENT OF SHARES
During the period Gippsland completed a placing of 17,080,000 fully paid ordinary share to UK institutional investors and Australian investors at a price of 2.5 pence per ordinary share. The Placing, undertaken by one of the Company’s UK brokers Fox-Davies Capital Limited, raised the sum of UK£427,000 (approximately A$978,500) before costs.