Scoping Study - Barrow Creek 1
Darwin, April 22, 2013 AEST (ABN Newswire) - Rum Jungle Resources Limited (
ASX:RUM) is pleased to announce completion of its scoping study and preliminary economic assessment of the Barrow Creek 1 Phosphate Project, located in the Northern Territory. The scoping study presumes a capital and operating cost estimate to an accuracy level of +/- 35%.
The scoping study identifies three phosphate production and associated transport to railhead options as potentially economic and technically viable for the development of the Barrow Creek 1 Phosphate Project as a standalone operation with an operating life in excess of 25 years.
The scoping study recommends the commencement of a pre-feasibility study to further define the optimum development project for Barrow Creek 1 that would form the basis of a future bankable feasibility study.
David Muller, Managing Director of Rum Jungle Resources Limited, commented:
"We are very pleased with the progress of the Barrow Creek 1 Phosphate Project and the positive outcome of the scoping study highlighting the potential for Barrow Creek 1 to be developed on a standalone basis with an operational life well in excess of 25 years. It should be noted that the study has been conservative in its assumptions of project timing, capital and operating costs, phosphate recoveries and assumptions around long-run phosphate prices and exchange rates which create an opportunity for further upside in the economics. For example, our DSO start-up price assumption is at a discount of approximately 30% to the current FOB price of Moroccan + 30% phosphate rock. We will provide further details on timing of the next phase in due course when the scope of the proposed pre-feasibility study is fully determined."
The Scoping Study commenced in November 2012 and completed in April 2013. Arccon Mining Services, a wholly owned subsidiary of the Allmine Group (ASX code: AZG); acted as Study Manager.
A number of credible consultants including Coffey Mining, MPR Geological Services, Pegasus TSI (Florida), ALS Global, Groundwater Science and Origin Capital provided specialist input and analysis in support of the scoping study. Genesee & Wyoming and the Ports Corporation of Darwin provided commercial input regarding rail transport and port operations.
Rum Jungle Resources has a market capitalisation of over $45 million (at 19 April 2013), holds $14.65 million in cash at bank as at 31 March 2013 and has no outstanding debt.
About Verdant Minerals Ltd
Verdant Minerals Ltd's (ASX:VRM) strategic intent is to create shareholder value through the discovery, development and operation of fertiliser and industrial mineral projects, located in close proximity to existing transport infrastructure, with a primary focus on the Northern Territory of Australia.
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