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PAM
PAM
PAM - Palabora Mining Company Limited - Announcement
PALABORA MINING COMPANY LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1956/002134/06)
JSE code: PAM & ISIN: ZAE000005245
("Palabora" or "the company")
ANNOUNCEMENT
Shareholders are advised that the board of directors of Palabora has approved
funding of R 200 million during 2008 towards the order of magnitude study of
additional underground reserves (R 150 million) and a pre-feasibility study of
expanding current magnetite output (R 50 million).
The following two underground areas will be investigated:
1) The area known as the West Extension, an addition of three crosscuts to
the western area of current crosscut 20. This would entail adding
crosscuts 21 through to 23. The development of this area has the
potential to add three years to the life of mine.
2) The area known as Lift II is the copper mineralisation area below the
current footprint. This area is very large and requires considerable
diamond drilling to confirm its tonnage and grade. The Lift II area has
the potential to add at least ten years to the life of mine.
Approximately 75% of the funds to be used during 2008 on underground
development projects, will go towards the work on the West Extension, with the
remaining funds earmarked for diamond drilling in the Lift II area.
The company intends to validate the feasibility study performed in the last
decade to determine the optimal means of enhancing its revenue stream by
utilising its magnetite stockpiles. Palabora is estimated to possess 240
million tonnes of magnetite.
Commenting on the expansion, Keith Marshall (Managing Director) remarked:
"Having stabilised the underground operations, we have now embarked on the
process of identifying opportunities to extend the life of mine and
opportunistically exploit all the surface materials that have become
commercially viable as a result of the commodity boom."
Palabora, a member of the Rio Tinto Group of Companies, situated in the Ba-
Phalaborwa area of Limpopo, operates a large block cave copper mine and
smelter complex.
Phalaborwa
6 December 2007
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 06/12/2007 17:00:04 Produced by the JSE SENS Department.
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