Carpentaria Exploration Limited (ASX:CAP) Receives A Boost By Addition Of A$8 Million Funding For Hawsons Iron Project
Sydney, July 16, 2010 AEST (ABN Newswire) - Carpentaria Exploration Limited (
ASX:CAP) announced today the receipt of the final Stage 1 payment of A$2 million from Bonython Metals Group (BMG) as part of the A$81m Hawsons Iron Project joint venture near Broken Hill, NSW. The Company has now received A$13 million from BMG, comprising A$5 million in cash and the remainder funding exploration and pre-feasibility work aimed at defining up to 1 billion tones of Inferred Resource at EL 7208 (Burta).
The Company is also pleased to announce virtually full take up of all the Carpentaria Options that fell due on June 30th 2010 realizing A$6,204,000.00. This boosts Carpentaria's cash reserves to A$20.1M.
At the Hawsons Iron Project two Reverse Circulation rigs and one diamond rig are operating on the Burta JV, as part of the 4,000 metre drilling program planned in the initial phase. The magnetite occurs in a siltstone and is very soft, allowing for low-cost mining and crushing in a favorable location for infrastructure just 60 kilometers from Broken Hill. These results will be announced at the completion of the program and when assay and analysis results are obtained.
Carpentaria's Executive Chairman, Nick Sheard, said he welcomed BMG's commitment to the JV as shown by their financial backing and was very pleased with the take up of the options. This gives Carpentaria the financial resources to maintain a strong exploration program and seek more mature opportunities.
"Carpentaria is excited by the potential for the Hawsons Iron Project and is determined to quickly move the project towards pre-feasibility status, backed by the latest funding from our joint venture partner. Assuming a positive pre-feasibility outcome, which is anticipated early next year, the project will move to Stage 2 in which case BMG will pay Carpentaria an additional A$25 million to vest 51% in the project," Mr. Sheard said.
"Ultimately, Carpentaria will retain a 20% free carried interest up to the targeted production of 20 million tons per annum of iron ore concentrate, giving shareholders a low-cost entry to a producing iron ore mine."
He said the latest payment from BMG and the option take up payment would be used to boost exploration at the Company's other attractive projects in eastern Australia, including drilling at the Euriowie tin project (100% CAP) and Panama Hat JV gold project in August; and also at the Combaning gold/nickel project (100% CAP). Drilling is continuing at the Hughenden Coal Project in Queensland with promising initial results, while drilling is set to start in late August at the Glen Isla gold joint venture.
"Carpentaria's aggressive exploration program has already achieved two discoveries, Hawsons and Euriowie, and we are confident of adding to our promising project pipeline. With A$9 million committed towards exploration this calendar year and additional funding anticipated from BMG at Hawsons, Carpentaria has the necessary financial and geotechnical resources to achieve further success and make the transition from minerals explorer to mining house."
About Carpentaria Resources Ltd
Carpentaria Resources Ltd (ASX:CAP) is focussed on delivering the best quality iron concentrates into the growing premium end of the iron ore market.
The Company aims to build a long term, low cost premium quality iron ore business from the development of its flagship asset, the Hawsons Iron Project, utilising existing infrastructure.
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