Sydney, Aug 1, 2007 AEST (ABN Newswire) - Olympia Resources (ASX: OLY) announce a brief update on the current projects as part of the Fourth Quarter Activities and Cashflow Report.
For a full copy of the Report, please visit the website at:
http://www.olympiaresources.com
Harts Range Project
During the quarter an exploration and development drilling programme was completed on the bore field at Spinifex Bore. Drilling established sufficient water supply for the project and a final report on the bore field will be completed in August.
Olympia is discussing various funding proposals with financiers and once successful it is planned to start construction at Harts Range as soon as practicable. Olympia anticipates that construction at Harts Range will commence in the last quarter of 2007.
Northern Territory Uranium
During the quarter Olympia commissioned a paper study by an experienced uranium geologist, Vince Roberts, on the potential for uranium mineralisation on its Northern Territory leases. The study concluded that Olympia's tenements were prospective for Uranium. The uranium potential for the area is considered to be related to the Arunta metamorphics and Valley-fill type deposits as well as a prominent uranium anomaly in the Eastern portion of the tenement block.
Olympia will commence ground gamma surveys on target areas as soon as permission is finalised with the areas Traditional Owners. It is anticipated that the gamma surveys will identify targets for drilling.
Keysbrook Project
In late 2006 the Western Australian Environmental Protection Authority (EPA) requested Olympia to carry out further work with respect to the Keysbrook project.
Further Management Plans have been developed by Olympia which were submitted to the EPA late in the quarter.
Two production bores and three deep monitoring bores were drilled into the Leederville aquifer at Keysbrook. Pump test data was used to prepare a report outlining any potential affects Olympia's water use may have on other stakeholders and this was submitted to the EPA. In addition, an application for the extraction of 2 gigalitres of water annually has been submitted to the Department of Water.
A dust monitoring station was set up and measurements taken until mid April to assist in the establishment of baseline dust levels at the site.
A baseline radiation survey was completed, further potential acid sulphate soil samples were collected and analysed, additional fauna and vegetation surveys were also carried out. The Rehabilitation Management Plan was revised and updated with additional input and agreement from the landholders.
Following the extra work completed by Olympia it is expected that a recommendation by the EPA on the Keysbrook project will be made during the third quarter of 2007. After the recommendation by the EPA there will be a period for appeals to be heard before a final decision on approval is made by the WA Minister for the Environment. In addition, Olympia must also obtain shire approvals, so it is unlikely that all approvals will be obtained before 2008.
Kalimantan Zircon Project
During the quarter environmental approval was obtained for the Bati Bati processing plant. The mining licence and upgrade of the BKPM Licence were progressed with all approvals expected to be finalised in August. All separation equipment along with the drier, pumps, hoppers etc. has been purchased and is awaiting completion of all approvals prior to shipment to Kalimantan.
Trading into China continued during the period but will stop in July. An initial feed stockpile of concentrate will then be formed to feed PT Olympia's processing plant.
Eucla Basin Exploration
No activity was undertaken on the Eucla Basin tenements during the quarter.
Discussions were held with Mineral Sands Limited to form a Joint Venture which would allow Mineral Sands Limited to gain 80% of Olympia's Balladonia tenements through spending $360,000 on exploration on the tenements over the next two years. This agreement was signed post the end of the period. The agreement allows Olympia to maintain an interest in the Balladonia tenements while prioritising expenditure on development of the Harts Range, Keysbrook and Kalimantan projects. Although exploration will continue in the southwest of WA and in Kalimantan, moving our advanced projects into operation and cashflow is seen to be the best way of adding value for our shareholders.
Southwest Exploration
Exploration on the Capel South and Capel North Prospects continued. Further drilling will be undertaken as access becomes available. Several targets identified from the geomorphology study are being targeted. The process of obtaining access agreements with landowners, heritage surveys and approval from DOIR is in progress.
Kalimantan Exploration
Exploration commenced on a tenement in the Pujon area of Central Kalimantan during the period. Initial scout exploration found low grade zircon (up to 0.5%) mineralisation at surface. A more extensive auger drilling program has commenced looking for higher zircon and gold grades at depths of up to 12 metres.
Discussions are well advanced to gain access to explore on five other tenements in Central Kalimantan owned by Indonesian nationals.
An extensive drilling program is planned for the second half of 2007 on these tenements as access is gained for exploration.
Corporate Activities
The Company successfully completed a rights issue raising $3.23 million before costs with the placement of 32,289,438 new fully paid shares at $0.10 per share and 16,144,760 options ($0.20 expiring 30 June 2010).
On 21 June 2007, Mr Michael Walters was appointed to the board. Mr Walters has over 25 years experience in the global resources sector including marketing and trading industrial minerals, line management of mining operations, and strategic planning and project development. His experience in strategic planning and development and his knowledge of international marketing of mineral products will be of great value to the company as it embarks on the development phase of its industrial minerals and mineral sands projects.
About MZI Resources Ltd
MZI Resources Ltd (ASX:MZI) is a mineral sands company focused on the high value minerals of zircon, rutile and leucoxene based in Perth, Western Australia. Its flagship operating asset is the Keysbrook Mineral Sands Project, located 70km south of Perth. At the Keysbrook mine, mineral sands are mined and processed to produce heavy mineral concentrate (HMC) which is processed into final products under a toll treating arrangement with Doral Mineral Sands Pty Ltd at the Picton Mineral Separation Plant (MSP) near Bunbury.
The Keysbrook mine hosts a world-class zircon / leucoxene ore body with total Ore Reserves equivalent to over 15 years of production at design output rates, and total Mineral Resources equivalent to over 30 years of production. Production commenced in late 2015, making the Keysbrook Project Australia’s first – and the world’s largest - primary producer of high value leucoxene.
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