| Mon 11 Jun 2007, 10:01 | | TBX - Thabex - Resources update: Salt River Base M |
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TBX
TBX
TBX - Thabex - Resources update: Salt River Base Mineral Project
THABEX EXPLORATION LIMITED
("Thabex" or "the Company")
Registration No 1988/000763/06
(Incorporated in the Republic of South Africa)
JSE share code: TBX
ISIN Code: ZAE000013686
Young Lions Exploring Africa
RESOURCES UPDATE: SALT RIVER BASE MINERAL PROJECT
Shareholders are referred to the SENS announcement of 24 April 2007 and 30 May
2007 relating to the Salt River Base Mineral Project ("Salt River Project") and
the Company`s provisional results for the period ended 28 February 2007,
respectively.
Thabex is pleased to report that the revised Mineral Resources for the Salt
River Project has increased by 32% from an Indicated Resource of 42.5Mt to a
Measured Resource of 14.6Mt and an Indicated Resource of 41.7Mt or a Total
Mineral Resource of 56.1Mt.
A summary of the updated Mineral Resources is listed below:
Mineral Mt Grade Cu Estimated
Resources value
As at 7 June Zn Cu Pb Ag Au Equivalent US$/t* US$bn
2007
Cut-off at 1.0% % % % g/t g/t %
Zn
Indicated 14.13 1.78 0.66 0.35 18.86 0.69 1.90 144.16 2037
Resources
Measured 9.97 1.83 0.46 0.55 21.35 0.45 1.83 138.92 1385
Resources
Total 24.10 1.80 0.58 0.43 19.89 0.59 1.84 138.84 3322
*Using 7 June 2007 metal prices (zinc US$3690/t; copper US$7559/t; lead
US$2315/t; gold US$660/oz and silver US$13.15/oz).
Dexter Ferreira of Lower Quartile Solutions (Pty) Ltd compiled the Mineral
Resources figures. Mr Ferreira, a senior geostatistician with over 16 years
experience in mineral project evaluation throughout South America and Africa, is
a member of the South African Council for Natural Scientific Professions
(SACNASP no 40048/03)) and qualifies as an `Expert`, `Competent Person` and
`Qualified Person` as defined in National Instrument 43-101, the SAMREC code and
the JORC code.
The Department of Mineral and Energy has granted Prospecting Rights and accepted
further applications for Prospecting Rights on the Salt River Project area of
interest in the Northern Cape Province. The area has increased, from 3037ha to
46043ha or about 1400% (a total of 460km2). It is expected that the substantial
increase in the Salt River Project area will further enhance the Mineral
Resources of the project in the future.
Thabex is at present conducting a pre-feasiblity study and the initial
indications are that a new mining operation would be viable on a portion of the
Salt River Project area. Using the following assumptions; an estimated
production level of 200000 tonne per month, a total capital expenditure
requirement of R1.4 billion (2007 terms), present metal prices, a steady state
cash cost of R281/t, a R/$ exchange rate of R7.20 and at a real discount rate of
10%, the Net Present Value of the Salt River Project calculates to R1.24 billion
with a RIRR of 35.6% and a payback period of about 5.5 years.
The Company welcomes Dr Craig McClung, with a wealth of experience and
specialist knowledge relating to the geology of the Northern Cape and base
mineral deposits similar to the Salt River Project, as Senior Exploration
Geologist to the Thabex team.
Intention to issue Thabex share options
On completion of the acquisition of Minnex Exploration Ltd, Thabex intends to,
subject to all regulatory requirements, publish revised listing particulars in
order to issue share options to all shareholders. The strike price, term and
ratio of the proposed share options issue have not been determined. Shareholders
will be informed once the terms of the options have been finalised.
Proposed listing of Salt River Resources Ltd ("SRR")
(formerly Thaba Egoli Mining & Exploration Ltd)
Thabex also proposes to list SRR in a separate listing on the JSE in order to
raise suffcient funding to complete a bankable feasibilty study. The details of
such a proposed listing will be provided in a prelisting statement. Shareholders
will also be informed once the terms of the proposed new listing have been
finalised.
Senior personnel and directors of Thabex will be travelling to London at the end
of June to attend the Omega Investment conference on Capital-Raising for Mid-Cap
Mining Companies on 26 June 2007. On returning Thabex will also present SRR to
local institutions and private investors.
Marius Welthagen MEng (Mining), MPhil (Mineral Economics), Hons BCom
(Economics), MECSA, FSAIMM, FGSSA) was responsible for compiling this update
report. As Chief Executive of Thabex he has sufficient experience relevant to
the style of mineralisation, type of deposits under consideration, activities
undertaken, evaluation and valuation thereof to qualify as a Competent Person in
terms of the SAMREC Code.
All updates about the Salt River project are available on the Company`s website
http://www.thabex.com - News releases and on request by e-mail info@thabex.com
Johannesburg
11 June 2007
Date: 11/06/2007 10:01:01 Produced by the JSE SENS Department.
