TABLE OF CONTENTS
Northshore Mining Needs to Invest in Water Pollution Control Equipment
Triad Mining Agrees to Resolve Clean Water Act
Patriot Coal Agrees To Major Selenium Cleanup
EPA Seeks Coal Permit Revision for West Virginia Mine
Canada Lithium Secures C$75m Loan for Québec Project
China Shen Zhou is China's Largest Fluorite-Barite Deep Processing Center
Mindoro: Phillipines Pan de Azucar Project Exploration Results
Avion Gold Starts Underground Production at Mali Mine
Shandong Iron and Steel to invest US$1.5bn in Tonkolili, Sierra Leone
Base Resources, Aviva Hoping to Build Kenya's Mning Sector
Anvil Deal Proceeds on New Agreements
Rio Tinto US$3.4 billion Expansion of Iron Ore Operations in Western Australia
Xstrata Zinc: McArthur River Mine Expansion
Mawson Gains Permission to Drill at Rompas, Finland
Northshore Mining Company recently agreed to pay a $26,087 civil penalty to the Minnesota Pollution Control Agency (MPCA) for alleged water quality permit violations at its Peter Mitchell taconite ore mine near Babbitt, Minnesota. The company has completed one of the stipulation agreement’s requirements and must adhere to a compliance schedule to resolve the remaining violations.
The company’s National Pollutant Discharge Elimination System/State Disposal System (NPDES/SDS) permit authorizes Northshore Mining to pump water (effluent) out of its open pit mine and discharge it to surface waters. The permit requires the company to sample effluent from pump-out locations to ensure it is clean enough to meet its permit limits. Northshore must also monitor and meet required effluent limits at the mine’s domestic wastewater treatment plant.
The enforcement action covers effluent limit violations that occurred between October, 2009 and March 2011. The most frequently occurring violation was for failing to meet pH requirements in the water at four mine pump-out monitoring stations. Other violations were for total suspended solids and un-ionized ammonia levels. Three violations of biochemical oxygen demand also occurred at the facility’s wastewater treatment plant.
The agreement requires the company to investigate and install technologies that will adjust pH levels from the mine pump-out stations, as well as develop and implement plans for eliminating the other effluent limit violations. It also includes a corrective plan should violations occur in the future.
The U.S. Environmental Protection Agency (EPA) and U.S. Department of Justice (DOJ) announced that Triad Mining Inc., the owner and operator of 31 surface mines in Appalachia and Indiana, has agreed to pay a penalty and restore affected waterways for failing to obtain the required Clean Water Act (CWA) permit for stream impacts caused by its surface mining operation in Indiana. Since 2002, Triad's mining operation has resulted in the unpermitted excavation and filling of more than 53,000 feet of streams that flow into the White River.
“Protecting America’s waters is one of EPA’s top priorities,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement will ensure that waterways impacted by unpermitted mining operations are restored and can again benefit the state of Indiana and the surrounding communities.”
“With this settlement, Triad will achieve compliance with the nation’s Clean Water Act and be held accountable for its unpermitted discharges into streams of the White River watershed,” said Ignacia S. Moreno, assistant attorney general for the Environment and Natural Resources Division of the Department of Justice. “Triad must also undertake restoration efforts and mitigate impacts from its mining activities by enhancing stream beds and creating buffer areas that will benefit aquatic life and recreational resources for the people of Indiana.”
Triad, a subsidiary of James River Coal Company, obtained the required Surface Mining Control and Reclamation Act permits from the state of Indiana for its mining operations, but never obtained the required CWA permit for the site, despite the fact that its surface mining operation involved excavating coal seams located directly below stream beds.
On March 24, 2008, the Army Corps of Engineers issued a cease and desist order requiring Triad to stop its unauthorized stream-filling activities. Triad continued its mining practices until the Army Corps of Engineers sent a second order on June 24, 2009, which Triad complied with. Since the second order was issued, Triad has continued mining, but has avoided additional impacts to streams.
Under the settlement, Triad must restore 34,906 linear feet of streams and enhance 4,330 linear feet of stream bed to address and mitigate impacts to stream beds caused by its mining activities. Triad will also create and maintain 66 acres of forested buffer areas and nine acres of forested wetland to protect the restored streams. Triad will also pay a $810,171 civil penalty.
The proposed settlement, lodged in the U.S. District Court for the Southern District of Indiana, is subject to a 30-day comment period and final court approval.
More information on the settlement: http://www.epa.gov/compliance/resources/cases/civil/cwa/triadmining.html
Patriot Coal has agreed to a major legal settlement that will require the company to clean up dozens of illegal discharges of toxic selenium at three major mining complexes in Southern West Virginia, according to court records.
Attorneys for the Sierra Club and other groups negotiated the deal with Patriot to resolve ongoing litigation following a September 2010 federal court ruling that began forcing coal operators to deal with selenium violations around the state's coalfields.
The Patriot deal covers 43 pollution outlets associated with 10 water discharge permits at three of Patriot's mining complexes, Hobet 21 along the Boone-Lincoln county line, Samples in Kanawha County, and Ruffner in Logan County.
Under the settlement, Patriot must construct and operate new selenium treatment systems that will end ongoing water quality violations. Discharges must be brought into compliance with pollution limits in phases over the next two to five years, based on the water and pollution flow. Smaller outlets must be cleaned up first, with a limited number of larger discharges having the latest deadlines.
Patriot will also pay $750,000 in fines to the federal government and contribute $6.75 million to the West Virginia Land Trust.
The deal also includes a promise that Patriot will drop any future plans to mine on a controversial, permit at its Jupiter-Callisto Mine in Boone County, near the home of anti-mountaintop removal activist Maria Gunnoe. The deal needs approval from U.S. District Judge Robert C. Chambers and from the Justice Department.
It's not clear how much the selenium treatment will cost Patriot.
Financial disclosures from the company indicate that court-mandated treatment systems already under construction to clean up four other discharge outlets at two Patriot mines will cost the company at least $95 million.
One Patriot financial disclosure, filed with the U.S. Securities and Exchange Commission, estimated the company's total selenium treatment liabilities at nearly $400 million over 30 years. As of Sept. 30, 2011, Patriot said it had recorded a $143 million liability for selenium treatment, but it's not clear that figure accounts for more advanced -- and expensive -- treatment the settlement could require.
The Environmental Protection Agency (EPA) is asking West Virginia to respond to its concerns regarding the water quality impacts of a proposed large-scale Consol Energy surface mine in Logan County.
Because the Buffalo Mountain surface mine would be one of “the largest single mining projects ever proposed in Appalachia,” the agency's region III office in Philadelphia has asked the West Virginia Department of Environmental Protection (DEP) to address EPA's objections to the project's national pollutant discharge elimination system (NPDES) permit.
“The scale and magnitude of environmental and water quality impacts from the mine as currently proposed are as significant as any mining operation we have reviewed in the past 20 years,” said EPA's 20 January letter.
DEP is still reviewing the NPDES permit, which governs the discharge of pollutants into US waters. The agency sent a draft NPDES permit to EPA last November, and the state has already approved a five-year surface mining permit for Buffalo Mountain on 22 November.
According to DEP, Consol of Kentucky will use auger, area mine, contour, highwall miner, mountain top and steep slope methods to extract coal from the Buffalo Creek, Coalburg, Stockton, Winifrede, 5 Block, and Upper, Middle and Lower Kittanning seams.
The permit covers 2,308 acres and includes 13 valley fills.
Among EPA's concerns was a variance given to the mine which would no longer require the mine site to be reclaimed to the approximate original contour. The variance enables the miner to dispose of waste rock into adjacent stream valleys instead of returning the waste to the mountain as part of mine reclamation, EPA said.
“Nearly ten miles (51,000 feet) of high-quality headwater streams will be buried under waste rock and dirt in 13 valley fills at the Buffalo Mountain site,” EPA said.
EPA determined there is “reasonable potential” that discharges from the mine would cause or contribute to violations of the state's narrative water quality criteria.
The permit also does not have enforceable Whole Effluent Toxicity limits, and the permit does not properly apply the state's anti-degradation procedures as they pertain to selenium limitations, EPA said. The permit also includes less strict limitations for iron and aluminum at certain outfalls and those limitations are not justifiable, EPA said.
If DEP does not hold a public hearing on all the comments about the project, and if state regulators do not resubmit a revised permit within 90 days of receiving EPA's 20 January letter, then authority to issue the permit passes to EPA.
EPA added that its comments pertain to the NPDES permit and do not address the discharge of dredged or fill material into US waters, which is covered by the Clean Water Act Section 404 permit. The Army Corps of Engineers administers 404 permits and is presently evaluating the permit application for Buffalo Mountain.
As EPA and DEP hash out the NPDES permit, the Federal Highway Administration and the West Virginia Department of Highways have decided to prepare a supplemental environmental impact statement (SEIS) on a section of the King Coal Highway that will include impacts from the Buffalo Mountain mine, EPA said.
The King Coal Highway is a proposed highway that would stretch across 94 miles in southern West Virginia. It was established by the state legislature in 1999 and would run along the existing US Route 52.
Canada Lithium Corp has secured a C$75 million ($74.9 million) debt facility from the Bank of Nova Scotia and Caterpillar Financial Services to fund its open pit Lithium mine and processing plant in Québec.
Cat Financial is also providing lease financing of up to $17 million for mobile mining equipment. The five-year facility is being backed up by a partial financial guarantee from Investissement Québec.
Canada Lithium said the project is on track to be commissioned later this year. Once completed, the project is slated to produce over 20,000 tonnes of battery-grade lithium carbonate every year.
China Shen Zhou Mining & Resources, Inc. (NYSE Amex: SHZ), a company engaged in the exploration, development, mining and processing of fluorite, zinc, lead, copper, and other nonferrous metals in China, announced that its recent acquisitions of three mining companies in Guizhou province position the Company as China's largest fluorite-barite deep processing center.
Since the beginning of 2012, China Shen Zhou has acquired, through its subsidiary, Xiangzhen Mining Ltd., 60% ownership of the equity of Wuchuan Dongsheng Mining Company Ltd., Qianshi Resources Development Company Ltd. and Meilan Mining Company Ltd., all located in the Wuling mountain area in Guizhou Province.
The acquisitions of these three companies were strategically timed, as China's State Council has issued a number of articles further promoting the economic and social development of Guizhou Province and has also issued a series of tax, investment and finance policies intended to support companies working in the energy, resource processing, non-metallic chemical and barium carbonate industries in this region.
China Shen Zhou is building a barium salt and fine chemical production line and a fluorite-barite ore processing production line with 200,000 metric tons annual processing capacity in the Wuling mountain area. The fluorite-barite ore separation and processing project on a smaller scale has already been put into operation and acknowledged as a national leading project. China Shen Zhou is planning to build a barium salt and fine chemical production line and fluorite-barite ore processing production line of the same scale in Tongren area of Guizhou province. The three newly acquired companies have large prospective reserves of fluorite-barite mining resources, which are a diminishing, non-renewable resource. As market demand increases, the value of these fluorite and barite resources is expected to become more and more significant. Through these transactions, the Company will become China's largest fluorite-barite deep processing center and will be well positioned to enter the high-end fluorine chemical market.
Mindoro Resources Ltd (TSX VENTURE:MIO) (ASX:MDO) (FRANFURT:WKN 906167) recently announced a drill-defined Exploration Target on its 75% interest Pan de Azucar Project, Iloilo Province, Philippines, of 8 million to 12.7 million dry metric tonnes (DMT) in a grade range of 35% to 40% sulphur (70% to 90% pyrite), 0.4% to 0.6% copper and 0.5 g/t to 0.7 g/t gold. The sulphide also contains significant silver and zinc values. Preliminary metallurgical testing at Minercon in the Philippines (a non NATA accredited laboratory) indicates potential for pyrite thermal-oxidation sulphuric acid production of up to 1.3 tonnes of acid per tonne of ore feed; subsequent acid-leach/solvent extraction-electrowinning (SX-EW) copper recoveries of 93% to 97% and gold leach recovery after copper removal of up to 95%. There is also potential for power generation using high pressure steam from excess heat produced during the pyrite thermal-oxidation stage.
Mindoro CEO Jon Dugdale commented, "We are very pleased with the Exploration Target and preliminary metallurgical results for Pan de Azucar as it indicates potential for high-value production of sulphuric acid, high recovery of copper, gold and other metals, and strong synergies with our proposed Agata nickel acid-leach processing project located just 200 nautical miles to the southeast."
Avion Gold Corp said production has started at its newly developed underground mine at the Tabakoto gold deposit in Mali, West Africa.
The West Africa-focused company, which holds 80 percent of the Tabakoto and Segala gold projects in Mali, said the Tabakoto underground mine is scheduled to produce about 470,000 tonnes of ore in 2012.
"It (commencement of production) is an important step in the company's goal of achieving 4,000 tonnes per day of process plant capacity in 2012," Chief Operating Officer Andrew Bradfield said in a statement.
The increase in capacity is expected to achieve a run-rate of 200,000 ounces of gold per annum by the fourth quarter, Bradfield said.
Ore is currently being extracted from the stope, a steplike excavation made in a mine. The entire stope is estimated to contain 10,600 tonnes of ore at an average diluted grade of 4.11 gram/tonne of gold, the company said.
London-listed African Minerals Ltd said it received approval from China National Development for Shandong Iron and Steel Group (SISG) to invest US$1.5 billion in its Tonkolili iron-ore project in Sierra Leone.
SISG confirmed that testing of a trial shipment was successful and that the iron ore was of sufficient quality to meet the terms of an off-take agreement.
Receipt of the remaining Chinese government approvals is expected shortly and so closure of the transaction has been extended until the end of March, African Minerals said.
Frank Timis, chairman of African Minerals, said the company is well positioned to complete Phase I of the project, ramping production up to 20Mt/y by the end of 2012, and to start its Phase II expansion programme.
Kenya is looking to new mining ventures in industrial metals and gold to assist the country in its bid to diversify away from its traditional agricultural focus.
Site visits arranged around the Indaba Cape Town Mining Conference included the ASX listed Base Resource's Kwale mineral sands project south of Mombasa.
The project is relatively small in mineral sands terms with a resource base of 146mt at 4.9% heavy mineral content for its Central and South dunes (Kenmare's Mozambique operation-Moma mine-has almost a billion tons of proven and probable reserves) but the potential impact on Kenya's exports is significant.
The project, which is in its implementation phase, will see Kenya's mineral sector export earnings more than triple (US$1.9 billion in sales) and will replace coffee as the country's fourth largest sector in terms of export value.
The project front end cash flows, whereby the higher grade areas are to be exploited first, have an estimated total capital expenditure of US$256m and a payback period that is expected to be less than two years.
Price forecasts used in the definitive feasibility study are based on an April 2011 price outlook from TZMI (TZ Minerals International - an independent consulting and publishing company).
Long term prices used are as follows: rutile US$1000/t, ilmenite US$135/t and zircon US$1715/t.
In comparison, Iluka Resources recently hiked its outlook for rutile for 1H 2012 to US$2400/t. Base Resources see supply remaining tight and demand buoyant thus keeping prices high.
Over the first seven years of operations, production volumes are to average 330kt for ilmenite, 79kt for rutile and 30kt for zircon respectively. Over the final 6 years, production volumes are to average 200kt for ilmenite, 55kt for rutile and 19kt for zircon.
Rutile and ilmenite are traditionally used as feedstock in the production of titanium dioxide which in turn is used as a pigment to provide whiteness to products such as paints, plastics, paper, inks and toothpaste.
Production, using a dozer trap mining method, is scheduled to begin in the last quarter of 2013.
The Perth based company, with a market capitalisation of approximately A$212 million at $0.47 per share, has secured development financing (US$170m) for the project and has signed an off-take arrangement with DuPont Titanium Technologies.
The agreement requires DuPont to purchase a minimum average of approximately 72% of annual rutile production for a period of six years at prices to be derived from an agreed quarterly index of market prices.
An equity raising of A$163m was also completed in September 2011.
With the project being just 50km from Mombasa, the company has acquired land on the southern side of the Mombasa port and will construct a storage facility and jetty to export its product through Kenya's principal port facility. A congested but viable road from the operations to the port will enable the mine to truck product up the coast to Mombasa.
Power supply will come via a link up to a new substation built by the Kenyan government to upgrade supply to the area and water supply will be provided by the Mukurumudzi dam that Base Resources is in the process of constructing.
With the North sand dune yet to be included in the numbers, there is the potential to increase in resources by another 116mt. Further afield, the Kilifi and Mambrui dunes could also potentially add 1.4bn tons.
The project is breaking new ground in Kenya and will set the stage for future developments due to its high profile.
Meanwhile another ASX listed company, Aviva Corporation Ltd, is undertaking exploration drilling for gold North West of Nairobi near Kisumu in Kenya.
The company has a 51% interest in the West Kenya joint venture with Lonmin subsidiary, AfriOre and can earn up to 75% of the project should a pre-feasibility study be completed to demonstrate a pre-tax net present value of US$50m.
The areas under licence are vast (2800 square kilometres) and comprise of the Ndori Greenstone belt similar to the greenstone areas in Tanzania. Tanzania has significant gold with Geita (12Moz) and Bulyanhulu (12Moz) being some of the larger resources. A base metal precinct has also been identified in the area.
A site visit to the northern part of the licence area (Kakamega gold camp), where there is significant evidence of artisanal mining taking place, is significantly underexplored. The company is targeting a 350koz resource in the area at grades of between 3-4g/t.
Drilling at the Bushiangala prospect in the Kakamega camp has been a focus point and has shown drill results of 3m @ 2.5g/t from 82m, 7m @ 8.3g/t from 98m, 5m @ 3.7g/t from 44m, 17m @ 7.2g/t from 25m, 16m @ 5.9g/t from 58m and 20m @ 9.4g/t.
The company will look to raise capital in the second quarter of 2012 to further its exploration efforts.
With Kenya having put a new constitution in place and making an effort to stamp out corruption, the elections pegged to occur towards the end of 2012 may derail significant progress made should violence erupt.
Minmetals Resources Ltd’s C$1.3 billion (US$1.27 billion) purchase of Anvil Mining Ltd is to proceed, after Anvil negotiated agreements with both DRC state-owned La Générale des Carrières et des Mines SARL (Gécamines) and the privately-owned Mining Company Katanga SPRL (MCK), which had opposed the deal.
After Minmetals announced its intention to buy Anvil in September 2011, both the parties said their approval was needed before Minmetals could buy Anvil.
Gécamines holds a 30% stake in Anvil’s Mutoshi joint venture copper project, and the underlying mineral tenures to the Kinsevere copper operation, 95%-owned by Anvil’s DRC subsidiary. MCK holds the remaining 5% of Kinsevere.
In a recent announcement, Anvil said it had concluded new agreements with Gécamines which recognise Anvil’s title to Kinsevere and Mutoshi. Both Gécamines and MCK said they welcome the acquisition by Minmetals, and MCK agreed to suspend all claims for six months while the purchase is finalised.
Anvil will make a US$55 million payment to Gécamines if the deal goes ahead, which includes a part pre-payment of royalties, and will pay the state-owned company US$35/t for new copper reserves discovered at Kinsevere. Minmetals said its parent company, China Minmetals Non-Ferrous Metals Company Ltd, had now approved the deal.
Rio Tinto has committed a further US$3.4 billion (Rio Tinto share $2.9 billion) to the major expansion of its Pilbara iron ore operations in Western Australia.
The investment comprises:
• US$2.2 billion (Rio Tinto 100 per cent) to extend the life of the Nammuldi
iron ore mine. With this funding, the project to increase production capacity in
the Pilbara to 283 million tonnes a year (Mt/a) is now fully approved.
• US$1.2 billion (Rio Tinto share US$700 million) for Cape Lambert port and rail
early works needed for the proposed capacity expansion to 353 Mt/a. The 353 Mt/a
expansion is in final feasibility study, with a final investment decision
expected later this year.
Rio Tinto expects capital intensity of expansion from 220 Mt/a to 353 Mt/a to be
around mid-US$150s per tonne, on a 100 per cent basis (Rio Tinto share around
mid-US$130s per tonne).
Rio Tinto Iron Ore and Australia chief executive Sam Walsh said "We believe we
have the best quality iron ore expansion projects anywhere in the world. They
are high return, low risk investments that are highly value-adding for
shareholders.
"Today we are announcing another significant milestone in our drive towards a
more than 50 per cent increase in the size of iron ore operations in Western
Australia. The programme remains on track and we are bringing new iron ore
production on stream at a time when demand from Asian markets is forecast to
grow strongly, while industry supply growth remains constrained."
Production capacity of 283 Mt/a in the Pilbara will be reached in the second
half of 2013. The Nammuldi expansion will deliver first ore in the third
quarter of 2014, and there will be a transitional period until then in which ore
will come from other mines to reach 283 Mt/a.
The Nammuldi project will extend existing mining below the water table,
increasing the mine's life by 14 years, at a production rate of approximately 16
million tonnes a year.
The Cape Lambert funding follows other early works investments already underway.
Plans to increase capacity at the port have been enhanced by further plans to
replace an ageing car dumper with a new dual car dumper, contributing an
additional 20 Mt/a to take Cape Lambert capacity to 203 M/ta in 2015.
The works and plans remain subject to a number of joint venture and regulatory
approvals, including environmental clearances, which are expected later this
year.
Rio Tinto's schedule for expanding its integrated Pilbara operations is as
follows:
• 225 Mt/a - current operating capacity
• 230 Mt/a by end of Q1 2012 - Dampier port incremental (in implementation)
• 283 Mt/a by end of H2 2013 - Cape Lambert 53 Mt/a increment (in
implementation)
• 353 Mt/a by end of H1 2015 - Cape Lambert 70 Mt/a increment (in feasibility
study)
A Draft Environmental Impact Statement (EIS) for the proposed AUD270 million expansion of McArthur River Mining (MRM) has revealed the project would deliver more benefits for the Northern Territory than first thought, a press release on Xstrata’s website reports.
The press release states that the project will increase MRM’s operational workforce by 67%, creating 295 new jobs when in operation and bringing the total workforce to 735 at its peak by 2020, compared to initial estimates of 550 jobs. The expansion has been designed to sustain the long-term future of the mine at a higher rate of production. Our investment into the local, regional and national economies would increase commensurately, including a further AUD11.3 million of investment through the MRM Community Benefits Trust.
We lodged the draft EIS with the Northern Territory Government today. It proposes increasing capacity at the mine from 2.5 million tonnes of ore per annum to 5.5 million tonnes, producing approximately 800,000 dry metric tonnes per annum of zinc-lead concentrate for export markets.
Xstrata Zinc Australia Chief Operating Officer Mr Brian Hearne said: “Our earlier estimates have now gone through the robust process of an EIS and we’re looking at being able to offer more jobs, a longer mine life and greater financial investment into the community in which we operate and the Northern Territory and Australian economies.”
The project proposes:
Over its lifetime the project is expected to produce approximately 20 million tonnes of zinc-lead concentrate for export.
Mr Hearne said: “The expansion will enable MRM to meet demand for zinc in concentrates more competitively.
“Aside from the direct employment benefits, we will require a wide range of products and services from other business sectors, predominantly in the Northern Territory, to support and service an expanded operation.”
The project is expected to boost industry output by AUD8.4 billion within the Northern Territory economy and AUD9.3 billion nationally during the construction, operational and decommissioning periods. This includes the benefits of direct and indirect investment and employment as well as all goods and services procured.
As part of the comprehensive draft EIS, we completed more than 40 detailed baseline studies and assessments of flora, fauna, land resources, surface water, groundwater, air quality, noise, traffic and cultural heritage working with external experts.
“The project also provides opportunities to introduce advances in environmental management techniques, particularly in managing tailings and waste rock,” Mr Hearne said.
The public comment period begins on 4 February and ends on 16 March 2012. You can find the complete EIS online at www.mcarthurrivermine.com.au from 4 February 2012.
The proposed expansion of MRM is currently in the feasibility study stage and is subject to approval by Xstrata.
Mawson Resources Limited (TSX: MAW) (Frankfurt: MRY) President & CEO Michael Hudson recently announced that the company has signed a contract with a private landholder to diamond drill at Rompas, Finland.
Key points include:
· Contract entitles Mawson to diamond drill on private land that incorporates +500 metres of strike potential at South Rompas
· Diamond drill contractor has been identified and who will mobilize a drill rig to site in early March 2012.
The agreement covers two areas at South Rompas. The southern area (18.9 hectares) encompasses a 280m trend of the southern extensions of the known mineralized zone. The northern area (24.8 hectares) covers an area of 240m strike in the central zone of the South Rompas project area.
According to discussions with landholders, Mawson will commence drilling in the southern area first. The agreement has been made according to the Finnish Mining Act which allows for private agreements to be reached between explorers and landholders. Mawson will specifically drill for and target gold.
Mawson has also identified a diamond drill contractor to mobilize a drill rig to site in early March. An initial 3,000 metre drill program has been planned.
The average depth of drill holes will be 100 metres. Further information regarding the details of the program will be released when they are available.
Mr Hudson states: "This is a landmark moment for the Rompas project. The first deep drill hole program has been awaited for some time and although the permitted areas do not contain the highest priority drill targets, the results are expected to significantly enhance our understanding of the mineral system.
We shall apply world's best environmental practice as we conduct this first drill program at Rompas."
Mawson holds 833 claims and claim applications for 75,340 hectares at the Rompas Project. A total of 110 exploration claims that cover a surface area of 10,580 hectares and form the core claims at Rompas were granted on October 31, 2010 but do not come into legal force until after a standard appeal process. A key decision point on the appeal process is expected late Q1 2012. The known footprint of mineralization at Rompas is 6 km by up to 270 m wide.
McIlvaine Company
Northfield, IL 60093-2743
Tel: 847-784-0012; Fax: 847-784-0061
E-mail: editor@mcilvainecompany.com
Web site: www.mcilvainecompany.com