Proactiveinvestors Australia

Finders Resources appoints new general manager

Fri, 04 May 2012 17:48:00 +1000

Indonesia-focused miner Finders Resources (ASX:FND) has appointed a new general manager for its Wetar Copper Project in southern Sumatra.

Finders has a 95 per cent interest in the Wetar Copper Project, which is currently being developed to reach 7,000 tonnes per annum capacity.

Newly appointed Garry Kielenstyn doubled production to 100,000 gold equivalent oz per year in his last role as the Indonesian general manager at PT Indomuro Kencana, which operates Mt Muro Gold Mine in central Kalimantan, Borneo.

Finders’ managing director Chris Farmer said Kielenstyn’s local knowledge and operational expertise would make him a valuable addition to Finders.

Farmer added: “We expect the Wetar copper project will receive final approvals in the near term and we are strengthening the team for commercial development.

“Garry has the right mix of skills to complement the existing team and is joining us at an exciting time.”

Finders also has a 72 per cent stake in the Ojolali Gold‐Silver Project in Sumatra, Indonesia.

Finders Resources secures A$8mln loan from major shareholders

Wed, 26 Oct 2011 01:56:00 +1100

Finders Resources (ASX:FND) has secured a loan of up to A$8 million from two of its major shareholders to maintain development momentum at its flagship Wetar copper project in Indonesia ahead of the main project funding.

Finders is currently arranging an additional project finance funding package of US$138 million with Credit Suisse, Standard Bank and Barclays, which are expected to seek credit committee approval in November.

The money secured from Finders’ shareholders Taurus Funds Management and Resource Capital Funds will be used for deposits and progress payments on Marine Fuel Oil (MFO) generators, the transportation and import of the Whim Creek SX/EW plant from Australia as well as for general working capital purposes.

Finders has signed a deal to buy six second‐hand refurbished generators from Royce Power Engineering, representing a total capacity of 19.7 megawatts (MW).

Use of MFO generators, which offer cost savings of 15 to 20 percent compared to high speed diesel, were a key component of the bankable feasibility study (BFS).

The Whim Creek SX/EW plant, which was purchased by Finders from Straits Resources in 2009, has a nameplate capacity of 18,000 tonnes per annum of copper. The company expects the plant to provide a significant capital cost saving relative to construction of a new plant.

“The MFO generators and the Whim Creek SX‐EW plant are both important parts of our development plan for the Wetar Copper Project. Shipping Whim Creek and securing long lead time equipment such as the MFO generators represent important development milestones,” said managing director of Finders Chris Farmer.

The loan is repayable on the earlier of either the project equity raising or 24 October 2012.

Finders Resources secures A$8mln loan from major shareholders

Tue, 25 Oct 2011 22:16:00 +1100

Finders Resources (ASX:FND) has secured a loan of up to A$8 million from two of its major shareholders to maintain development momentum at its flagship Wetar copper project in Indonesia ahead of the main project funding.

Finders is currently arranging an additional project finance funding package of US$138 million with Credit Suisse, Standard Bank and Barclays, which are expected to seek credit committee approval in November.

The money secured from Finders’ shareholders Taurus Funds Management and Resource Capital Funds will be used for deposits and progress payments on Marine Fuel Oil (MFO) generators, the transportation and import of the Whim Creek SX/EW plant from Australia, as well as for general working capital purposes.

Finders has signed a deal to buy six second‐hand refurbished generators from Royce Power Engineering, representing a total capacity of 19.7 megawatts (MW).

Use of MFO generators, which offer cost savings of 15 to 20 percent compared to high speed diesel, were a key component of the bankable feasibility study (BFS).

The Whim Creek SX/EW plant, which was purchased by Finders from Straits Resources in 2009, has a nameplate capacity of 18,000 tonnes per annum of copper. The company expects the plant to provide a significant capital cost saving relative to construction of a new plant.

“The MFO generators and the Whim Creek SX‐EW plant are both important parts of our development plan for the Wetar Copper Project. Shipping Whim Creek and securing long lead time equipment such as the MFO generators represent important development milestones,” said managing director of Finders Chris Farmer.

The loan is repayable on the earlier of either the project equity raising or 24 October 2012.

Finders Resources: finnCap analyst expects shares to increase in value

Fri, 01 Jul 2011 10:12:00 +1000

Mine developer Finders Resources (ASX:FND) announced this week it has completed its bankable feasibility study (BFS) for the Wetar copper project - confirming the ‘robust economic viability’ of the 95 percent owned project on the Indonesian island.

It comes after the award of the mining permit for the project earlier this month and the BFS - a review of the 2009 study - will now be used as the basis of a mandate for project financing. It plans to finalise the details with lead arrangers next month.

The BFS base case puts the project’s NPV (net present value) at US$304 million, which gives a 62 percent internal rate of return (IRR) and puts the project’s payback period at 0.9 years.

In a note to clients finnCap analyst Joe Lunn had said he expected the shares to increase in value, as mine development is de-risked further.

“The shares continue to trade on a 60 percent discount to the base case because of financing risk and the pending award of the forestry permit, but we expect both these risks to have been removed in July.

"Thereafter, we expect the shares to increase in value towards our fully diluted valuation of 77 Australian cents per share,” he said.

In a further research note, the analyst said: "The decision to use marine fuel oil as a cheaper alternative to diesel means that operating costs only suffer a 9 percent increase since the 2009 study and now average US$1.09/lb over the life-of-mine (LOM)."

He added that the 31 percent increase in capex to US$155 million was due to higher local currency costs, the bringing forward of previously deferred items, and decisions about purchasing rather than leasing items.

"However, the key point is that, at current copper prices, project payback is less than 1 year, with EBITDA margins exceeding 75 percent," he said.

Referencing financing, he said discussions with a number of banks have been ongoing for two years. "We understand that the banks have a history of providing new mine project finance in Indonesia so are comfortable with the macro risk profile," he said.

The analyst went on: "We expect copper cathode production at Wetar to restart in Q4 at a 5tpd run-rate. This run-rate will almost quadruple in Q3 2012 when the expanded demo plant goes live. Full production from the main plant has been increased by 2,000t to 25,000tpy and this run-rate will start at the end of 2013."

Finders Resources gets key mining permits for Wetar copper project in Indonesia

Wed, 15 Jun 2011 17:48:00 +1000

Finders Resources Ltd (ASX:FND) said it has been granted key mining permits for the development of the Wetar copper project in Indonesia, calling it a “major breakthrough”.

The permits, issued by the District of Maluku Barat Daya under the new Indonesian Mining Law, are valid for 20 years. Together they are equivalent to an Australian mining lease.

On issuing the permits, Drs Barnabas Orno, Regent of Maluku Barat Daya, Indonesia, said: “One of my priorities is a serious commitment to investors and entrepreneurs, both nationally and internationally, and to demonstrate that Maluka Barat Daya is very conducive for, and supportive of, investment.

“The Wetar copper project has shown a significant role in job creation and new economic activities for the local community. My request is that the issue of the Wetar copper operations permits will create momentum for the business community to increase participation in local development and will be seen as an encouraging message for investors.”

Finders managing director Chris Farmer said the permits are a major breakthrough for the development of the project.

“The Wetar project will be the first copper project in Indonesia which produces a value‐added product, LME grade A cathode, and the IUP processing and refining (permit) is the first of its kind to be awarded under the new Mining Law,” he said, adding: “The support for the project from the local community, government administration and members of parliament provides a firm basis for the commercial development of Wetar.”

Finders will be providing further updates in the near‐term regarding the results of the bankable feasibility study and the planned project timetable.

Subsidiary permits are required to utilize natural resources in the project area and commence building, however these are routinely issued post the mining permit and are not expected to materially delay the project timetable, the group added.

Finders is the operator of Wetar, with a 95 percent interest, and the Ojolali gold‐silver project, in which it holds 72 percent but with an option to acquire 100 percent, both located in Indonesia.

The Wetar project comprises two high grade deposits, Kali Kuning and Lerokis, which are located within 3 kilometres from the coast and suitable for open pit mining. The project benefits from having existing infrastructure in place, particularly a wharf, camp and roads and partially pre‐stripped copper ore bodies from a prior gold mining era.

Since February 2009, Finders has successfully operated a 5 tonne per day Solvent Extraction and Electrowinning (SX‐EW) demonstration plant. The demonstration plant produced and sold over 2,500 tonnes of LME Grade A copper cathode.

The development of Wetar comprises the brownfields expansion of the existing demonstration plant to 7,000 tonnes per annum capacity, followed by incorporation of the Whim Creek plant to lift production to 25,000 tpa.

Finders Resources in the final straight as it waits for the go-ahead for Wetar Project

Mon, 28 Mar 2011 20:23:00 +1100

Finders Resources (ASX: FND, LON: FND) has done all it can to prove the potential of its copper project on the Indonesian island of Wetar.

Its demonstration plant produced five tonnes of high quality copper cathode per day that was sold at a premium to the spot price.

Crucially the recoveries from the heap leach were 70% and sometimes as high as 80% before the operation was closed down at the end of last year.

Management, led by managing director Christopher Farmer, plans to bring Wetar into production in two stages, starting at 7,000 tonne per year from the second quarter of next year, ramping up 23,000 tonnes in first quarter of 2013.

Before that, however, it has two hurdles to clear. It has to find an estimated US$130 million needed to finance the project, while at the same time securing the go-ahead for Wetar from authorities.

Finders has lodged formal applications with the various regional and local government departments for a mining licence, which it hopes to receive by the middle of this year.

The only potential wrinkle is that recent regional elections have failed to return a winning candidate, leaving a political vacuum. That said, the interim regime has the power to issue the various permissions needed, analysts say.

The project also requires a forestry permit. “Indonesia differentiates between forests that have protected status and those that do not,” said Joe Lunn, of City broker FinnCap.

“The forests of concern are not protected so we believe it is a question of when, not if, the re-zoning occurs and the forestry permit is awarded.

“We understand that the forestry permit may be issued three months or more after the mining permit.”

It recently took full control of Wetar, which comprises two high grade copper deposits at Kali Kuning and Lerokis with a proved and probable ore reserve of 8.2 million tonnes at 2.5% at 0.5% cut-off grade.

The two are brown-field developments, though there are also a number of other exploration targets elsewhere on the island, including Meron, which is just 1 kilometre from where Finders plans to put the Kali Kuning leach pads.

The Wetar deposits are of the black smoker variety that typically have a black cap surrounded by a copper halo. Billiton mined out the caps at Kali Kuning and Lerokis, but left the copper.

The life of mine operating cost are expected to be US$1.06 per pound, which puts the project right up there with the world’s cheapest producers on a unit cost basis.

This of course is the result of the higher average copper grade, the low waste-to-ore strip ratio and the low cost heap leach flowsheet.

In 2013, FinnCap expects the company to be post EBITDA of US$146 million based on production of 23,000 tonnes of cathode copper at a price of over US$9,230 per tonne.

The figures are just as impressive out to 2016 when the analyst then reverts back to a price of US$6,500 per tonne of copper, which equates to the long-term price of the metal.

The capital cost of developing the fully-fledged Wetar project are put at comparatively modest US$130 million based on a November 2009 feasibilty study by Ausenco. FinnCap expects 60% of that figure will be funded by project finance.

“Finders is confident that sufficient information is available for the banks to conduct due diligence to their satisfaction,” FinnCap’s Lunn said.

“We understand that a number of banks have expressed an interest in project finance and have previously financed other mines in Indonesia so are comfortable with the geopolitical risk.”

The high copper grades, meanwhile, means that Wetar will be strongly free cash-flow generative.

“We estimate that, once the initial capital outlay has been sunk into the project, payback will be in about 12 months assuming current copper prices,” Lunn adds.

“We have assumed a relaxed debt repayment schedule over five years at an interest rate of 8%.”

Finders also owns a 72% stake in the Ojolali project in Sumatra with an initial resource of 175,000 ounces of gold oxide and plenty of exploration upside.

However, the current price of $0.43 a share in London fails to fully recognise the worth of the copper, let alone the gold assets.

The stock is currently valued at less than 0.4 times net asset value. FinnCap’s Lunn reckons Finders should be trading at closer to 0.8 times NAV, or $0.77 per share.

The analyst reckons the copper assets alone are worth $0.67, and Ojolali $0.05, leaving another $0.05.

“We continue to believe that Wetar is one of the best undeveloped copper projects in the world,” Lunn added.

Finders Resources takes full control of Wetar copper project ahead of commercial production

Sat, 22 Jan 2011 02:13:00 +1100

Finders Resources (LON:FND, ASX:FND) has restructured ownership of its flagship Wetar copper project, moving to full ownership of Banda Minerals to raise its economic interest in the project.

The company bought the remaining shares of Banda from its local Indonesian partner PT Batutua Kharisma Permai (BKP).

Finders called the deal an important step in a broader restructuring of the project as it approaches commercial production, adding that it also provides tax benefits.

As Finders' local partner, BKP is the legal holder of the Wetar mining tenements, held a minority interest in Banda and was entitled to a royalty on the Wetar project equal to 5% of net profits.

To ensure compliance with the new Indonesian mining regulations, Finders has reached commercial agreement to merge PT Batutua Tembaga Raya (BTR) with BKP to move to full ownership of the mining tenements and extinguish the royalty.

Under the terms of the deal, BTR shareholders will be entitled to a 5% interest in the merged entity, with Finders holding a 95% interest.

The company said that it is currently reviewing the legal and taxation mechanics of the merger and will develop a timetable to complete the transaction in due course.

At 31 December 2010, BKP's interest in Banda had been diluted to 3.7% through project expenditure.

In late October, Finders reported that the Wetar project’s demonstration plant in Indonesia was operating as forecast and on budget, with 341 tonnes of copper cathode being produced in the third quarter ended 30 September 2010.

Around 361 tonnes were sold in the quarter at an average price of A$7,227 per tonne.

Later in 2010, Finders decided to delist from the AIM market of the London Stock Exchange and retain only its Australian listing.

The cancellation will take effect on 26 January 2011, which means that 25 January will be the last day of trading of Finders’ shares on AIM.

Finders Resources takes full control of Wetar copper project ahead of commercial production

Fri, 21 Jan 2011 20:53:00 +1100

Finders Resources to delist from AIM and focus on ASX, names James Wentworth FD

Fri, 17 Dec 2010 23:25:00 +1100

Finders Resources (LON:FND, ASX:FND) has decided to depart from the AIM market of the London Stock Exchange and keep only its Australian listing.

The company simultaneously announced the appointment of James Wentworth as finance director.

Finders’ new finance director started his career with law firm Feez Ruthning in Brisbane before joining Macquarie Bank in their Project and Structured Finance and Corporate Advisory divisions in Sydney and Wellington.

He then moved to New York and worked in the Mergers and Acquisitions division of Lehman Brothers for three years before joining Goldman Sachs' Principal Investment Area.

He has spent the last nine years with Sydney-based private equity firm CHAMP Ventures where he was a director and member of the Investment committee.

The cancellation will give shareholders currently trading on AIM access to the greater liquidity available on the ASX, the group said.

Less than 2 percent of Finders’ shares in issue are currently traded on AIM.

“Finders continues to welcome investment from London and other European institutions and will be maintaining its UK marketing programme through the retention of FinnCap Ltd as joint broker and research provider,” the company said in the statement.

The cancellation will take effect on 26 January 2011, which means that 25 January will be the last day of trading of Finders’ shares on AIM.

All shareholdings held through Finders' UK share registry will be migrated to Finders Australian share registry (managed by Computershare) following the cancellation date.

Shareholders will be able to transfer their holding before this date if they so choose.

Finders is focused on the Wetar copper project in Indonesia.

In October, the company told investors that the Wetar project’s demonstration plant in Indonesia was operating as forecast and on budget, with 341 tonnes of copper cathode being produced in the third quarter ended 30 September 2010.

Finders’ Wetar copper plant is producing in line and on budget

Thu, 28 Oct 2010 18:53:00 +1100

Finders Resources (LON:FND, ASX:FND) told investors that the Wetar project’s demonstration plant in Indonesia is operating as forecast and on budget, with 341 tonnes of copper cathode being produced in the third quarter ended 30 September 2010.

Around 361 tonnes were sold in the quarter at an average price of A$7,227 per tonne.

The demonstration plant has now produced approximately 2,253 tonnes of copper cathode since February 2009.

Finders said that leaching rates have slowed because no new ore has been stacked on Heaps 1-3 since early 2009, this level of production was anticipated and it is in line with the its earlier recovery curve predictions.

The next phase of the Wetar project will see the ‘Stage 1’ expansion of the demonstration plant for a 7,000 tonnes per annum (tpa) operation.

In August Finders raised A$20.9 in a share placing to support the Wetar development.

Finders said it is currently in the final stages of hiring contractors and suppliers for the construction phase.

The company is also working on the design for Stage 2, where the recently acquired Whim Creek plant will be relocating to Wetar leading to a further expansion to 23,000 tpa.

The export documentation is being finalised to take the Whim Creek equipment from Australia to Indonesia, and Finders expects to be ready to mobilise the equipment in the first quarter of 2011.

Additionally the company highlighted that it has completed the final documentation in support of its mining permit application.

However it cautioned that permitting may be delayed due to local elections in Indonesia.

Elsewhere, at the Ojolali project in Sumatra Finders, had been drilling on the Tambang gold-silver system, to test near surface mineralisation.

The program identified a new high grade gold-rich shoot, with a seven metre intersection grading 5.62 grams per tonne (g/t) gold and 70 g/t silver at a depth of 55 metres. The intersection formed part of a broader 24 metres which had a grade of 1.84 g/t gold, 38 g/t silver and 0.56% zinc.

“The results have highlighted the continuity of wide zones of near surface gold-silver mineralization, and importantly demonstrated previously unrecognized potential for gold rich shoots within the system”, Finders said.

Additionally Finders said it expects to receive a new resource estimate in November, for the bulk low grade Jambi target at Ojolali.

Straits Resources acquires 10.7 million of Finders Resources shares

Fri, 15 Oct 2010 09:02:00 +1100

Straits Resources (ASX: SRL) has acquired 10,714,285 ordinary shares in Finders Resources (ASX: FND) through a placement on September 3 and October 11 at $0.28 per share.

Currently, FND is trading at $0.45.

Straits Resources' A$3 million stake has increased to 4.8 million since the placement was made in August.

Finders Resources wins shareholder approval for A$20.95 fundraising

Wed, 06 Oct 2010 17:42:00 +1100

Finders Resources’ (ASX:FND, LON:FND) capital placing has received “overwhelming” shareholder support, raising funds for the development of its flagship Wetar copper project in Indonesia.

Shareholders voted in favour of the capital raising at a shareholder meeting held today in Sydney, the group said in a statement to the London Stock Exchange.

Shares moved up nearly 5 percent on the news, and were up at 21.50p in late morning London trade.

The total capital raising amounted to A$20.95 million via a placement to institutional and sophisticated investors. Under the offer, new ordinary shares will be issued at A$0.28 per share, a discount of approximately 10% to the trading price of Finders shares prior to announcement of the raising.

The funds will be applied to the near term development of the Wetar project as well as capital equipment purchases, payment of environmental bonds and relocating the Whim Creek solvent extraction and electrowinning (SX/EW) plant from Australia.

The company will also complete a revised capital estimate for the planned expansion to 23,000 tonnes per annum (tpa) copper cathode.

Finders noted that its shares have traded well above the placing price since it was announced, most recently around A$0.37.

“I believe this shows that the market is beginning to appreciate the future of the company and its long term prospects," said chairman Russell Fountain.

“Finders is one of very few emerging copper plays for Australian investors.

“The robust economics underpinning our Wetar project, combined with the experience of our management and the support of the local Indonesian community, auger well for a healthy and profitable future for the company,” Fountain added.

In its quarterly operations report, Finders noted a solid performance as it moves the Wetar copper project towards commercial production.

During the second quarter to end-June 2010, the company completed upgrades to Wetar’s demonstration plant ahead of schedule.

Finders said that the demonstration plant’s current performance has been steady, with 416 tonnes of ‘Grade A’ cathode being produced in the quarter, equating to 4.6 tonnes of copper per day. The company sold 439 tonnes during the period with an average price of US$7,100 per tonne.

The company is also targeting completion of a scoping study for the gold and silver deposits at its Ojolali gold‐silver project in Sumatra.

Finders Resources could be on crest of large epithermal gold system in Sumatra project

Thu, 09 Sep 2010 08:06:00 +1000

Finders Resources (ASX/ASX: FND) has identified a high grade gold-rich shoot from its 72% owned Ojolali gold-silver project in Sumatra, after recently completing the 18 hole 1717m program of infill RC drilling at Tambang.

Based on the results to date, the interpretation is that Finders could be at the top of a larger epithermal system - which could suggest large potential for additional discoveries at depth.

The drilling program was designed to test for near surface mineralization, with potential to provide additional feed for a start up mining operation based on the Jambi oxide gold resource.

Highlights include the new high grade gold-rich shoot that is completely open at depth with an intersection of 7m grading 5.62 g/t Au and 70 g/t Ag from 55m depth within a broader intercept of 24m grading 1.84 g/t Au and 38 g/t Ag and 0.56% Zn from 49m depth in TBGR 29.

Further high grade shallow silver intersections, including:
- 13m grading 184 g/t Ag and 0.41 g/t Au from 23m in TBGR 21;
- 20m grading 128 g/t Ag and 0.39 g/t Au from 52m depth in TBGR19; and
- 1m grading 658 g/t Ag and 0.52 g/t Au from 30m depth in TBGR 20.

Russell Fountain, chairman, said the results have demonstrated the ability to expand the inventory of near-surface oxide mineralization at Ojolali, and continue to emphasise the discovery potential of the project.

“This program tested approximately 600m of the known +2km strike length of the Tambang vein system."

"The results have highlighted the continuity of wide zones of near surface gold-silver mineralization, and importantly demonstrated previously unrecognized potential for gold rich shoots within the system, as evidenced by the intersections in TBGR25 and 29, which are completely open at depth."

“Based on these Tambang results and the previously announced Jambi drilling, we are now instituting a program of metallurgical test-work, including bottle roll testing, as a basis for a scoping study for development of a leaching operation based on both prospects.”

The Tambang mineralization comprises a west dipping fault controlled swarm of quartz and manganese veins, hosted mainly in a siltstone unit separating basement basalts from a locally tuffaceous andesitic rock sequence.

Finders Resources raises A$20.95m for Wetar Copper project development

Mon, 30 Aug 2010 08:08:00 +1000

Finders is now ready to make the crucial step into production at Wetar in Indonesia and is one of few emerging copper players with potential to become a producer for Australian investors.

Finders Resources requests further suspension to finalise placement

Thu, 26 Aug 2010 08:24:00 +1000

Finders Resources (ASX: FND) has requested a suspension of the trading halt announced 24 August regarding a fundraising through placement of securities.

The halt will last until an announcement is made or commencement of trading on Monday 30th August 2010.

Finders Resources is moving the Wetar copper project in Indonesia towards commercial production.

Finders Resources in trading halt pending fundraising announcement

Tue, 24 Aug 2010 05:53:00 +1000

Finders Resources (ASX: FND) has requested a trading halt pending release of an announcement about a fundraising through placement of securities.

The halt will last until an announcement is made or commencement of trading on Thursday 26th August 2010.

Finders Resources is moving the Wetar copper project in Indonesia towards commercial production.

Finders Resources dismisses claims it misled shareholders over Wetar copper project

Thu, 12 Aug 2010 16:56:00 +1000

Finders Resources (LON:FND, ASX:FND) has rejected allegations, made by two minority shareholders who arranged project financing for the Wetar demonstration plant, that it misled the investors in relation to the development.

According to Finders, the allegations are “without foundation” and potential claims against the company “have little chance of success”.

The company told investors that the minority shareholders, Tennant Metals Pty Ltd (Tennant) and MIT Nominees Pty Ltd (Meridian), may be instigating legal proceedings.

Tennant and Meridian claim that “certain historic reports, announcements and presentations made by the company in relation to the timing and costs of the (Wetar copper project in Indonesia) project and its commercial development were misleading or deceptive”, the group said.

“In essence, the basis of these claims is that, given the final cost and timing of delivery of the now successful project and its expected commercial development, the company could not at the time have had a reasonable basis for its various announcements,” Finders stated.

Finders said it has sought an external legal review of material underpinning its past announcements and after receiving legal advice, it believes the claims are without foundation and, if legal proceedings commence, the minority investors have little chance of success.

Furthermore, the company emphasised that “Tennant and Meridian conducted their own due diligence as sophisticated equity investors”, and the shareholders “received detailed and on-going information flow in respect of the project during the course of the loan financing arrangements”.

In early 2008, Finders placed a combined 5.1 million shares, at US$1.10 per share, to Tennant and Meridian as part of a financing deal to fund construction of the Wetar Demonstration Plant. The financing also included a secured loan agreement of US$5m from Tennant and Meridian.

Finders said the loan was repaid in September 2009, and Tennant and Meridian remain the registered holders of “substantially all” the placing shares issued in 2008.

According to Finders, Tennant and Meridian are seeking to “recoup their alleged loss on their initial capital investment” through the claims.

“Should any legal proceedings commence, the company believes that the legal costs and any potential liability can be managed ... in the ordinary course of business,”Finders stated.

On the ground at Wetar, the project’s expansion program to increase copper cathode production to 23,000 tonnes per annum continues on track.

Last month, in its Q2 results statement, Finder said that the demonstration plant’s current performance has been steady, with 416 tonnes of ‘Grade A’ cathode being produced in the quarter, equating to 4.6 tonnes of copper per day. The company sold 439 tonnes during the period with an average price of US$7,100 per tonne.

Through Stage 1, Finders said it has now completed its detailed engineering; all quotes have been completed and contractor responses to major works are being reviewed; project finance term sheets are being shortlisted; and capital estimates are expected by the end of July.

In reference to the Stage 2 expansion the company said that it is making steady progress with permitting. A revised capital estimate is targeted for December 2010, while engineering design work and earthworks optimisation is currently underway.

Finders Resources dismisses claims it misled shareholders over Wetar copper project

Thu, 12 Aug 2010 13:48:00 +1000

Finders Resources (LON:FND, ASX:FND) has rejected allegations, made by two minority shareholders who arranged project financing for the Wetar demonstration plant, that it misled the investors in relation to the development.

According to Finders, the allegations are “without foundation” and potential claims against the company “have little chance of success”.

The company told investors that the minority shareholders, Tennant Metals Pty Ltd (Tennant) and MIT Nominees Pty Ltd (Meridian), may be instigating legal proceedings.

Tennant and Meridian claim that “certain historic reports, announcements and presentations made by the company in relation to the timing and costs of the (Wetar copper project in Indonesia) project and its commercial development were misleading or deceptive”, the group said.

“In essence, the basis of these claims is that, given the final cost and timing of delivery of the now successful project and its expected commercial development, the company could not at the time have had a reasonable basis for its various announcements,” Finders stated.

Finders said it has sought an external legal review of material underpinning its past announcements and after receiving legal advice, it believes the claims are without foundation and, if legal proceedings commence, the minority investors have little chance of success.

Furthermore, the company emphasised that “Tennant and Meridian conducted their own due diligence as sophisticated equity investors”, and the shareholders “received detailed and on-going information flow in respect of the project during the course of the loan financing arrangements”.

In early 2008, Finders placed a combined 5.1 million shares, at US$1.10 per share, to Tennant and Meridian as part of a financing deal to fund construction of the Wetar Demonstration Plant. The financing also included a secured loan agreement of US$5m from Tennant and Meridian.

Finders said the loan was repaid in September 2009, and Tennant and Meridian remain the registered holders of “substantially all” the placing shares issued in 2008.

According to Finders, Tennant and Meridian are seeking to “recoup their alleged loss on their initial capital investment” through the claims.

“Should any legal proceedings commence, the company believes that the legal costs and any potential liability can be managed ... in the ordinary course of business,” Finders stated.

On the ground at Wetar, the project’s expansion program to increase copper cathode production to 23,000 tonnes per annum continues on track.

Last month, in its Q2 results statement, Finder said that the demonstration plant’s current performance has been steady, with 416 tonnes of ‘Grade A’ cathode being produced in the quarter, equating to 4.6 tonnes of copper per day. The company sold 439 tonnes during the period with an average price of US$7,100 per tonne.

Through Stage 1, Finders said it has now completed its detailed engineering; all quotes have been completed and contractor responses to major works are being reviewed; project finance term sheets are being shortlisted; and capital estimates are expected by the end of July.

In reference to the Stage 2 expansion the company said that it is making steady progress with permitting. A revised capital estimate is targeted for December 2010, while engineering design work and earthworks optimisation is currently underway.

Finders Resources reports solid performance as Wetar moves towards commercial production

Wed, 28 Jul 2010 18:07:00 +1000

In its quarterly operations report, Finders Resources (LON:FND, ASX:FND) noted a solid performance as it moves the Wetar copper project in Indonesia towards commercial production. During the second quarter to end-June 2010, the company completed upgrades to Wetar’s demonstration plant ahead of schedule.

The company highlighted that revised capital cost estimates for Stage 1 are nearing completion, and it is currently carrying out detailed engineering and optimisation design work for Stage 2.

Finders said that the demonstration plant’s current performance has been steady, with 416 tonnes of ‘Grade A’ cathode being produced in the quarter, equating to 4.6 tonnes of copper per day. The company sold 439 tonnes during the period with an average price of US$7,100 per tonne.

Through Stage 1, Finders said it has now completed its detailed engineering; all quotes have been completed and contractor responses to major works are being reviewed; project finance term sheets are being shortlisted; and capital estimates are expected by the end of July.

In reference to the Stage 2 expansion - which will take production to 23,000tpa - the company said that it is making steady progress with permitting. A revised capital estimate is targeted for December 2010, while engineering design work and earthworks optimisation is currently underway.

Elsewhere, Finders' Ojolali project was boosted during the period by high-grade gold and silver assays from the Jambi oxide prospect. Finders said that the results support the presence of high-grade zones within the deposit, and enhance the potential for extensions to depth.

Encouraging gold grades from Jambi drilling include 7m grading 9.6 grams per tonne gold, 24m at 3.1g/t gold and 7m at 4.3g/t. The assays also established a high-grade gold-silver feeder zone, with 6m grading 7.1g/t gold and 161g/t silver.

Finders believes that Ojolali has strong potential to become the company’s second development project. The company owns 72% interest in the project.

Last week, chairman Russell Fountain commented: “The wide zones of near surface oxide gold mineralization will enhance the potential for a start‐up oxide gold mine at Jambi. In addition, resolution of the structural controls opens up the means for effective targeting of the outstanding deep exploration potential of the Ojolali area"

"The exploration success being achieved at Ojolali combined with the planned expansion at Finders’ Wetar copper project later this year leaves the company in an excellent position.”

Finders Resources reports solid performance as Wetar moves towards commercial production

Wed, 28 Jul 2010 14:39:00 +1000

Finders Resources encouraged by high gold grades at Jambi prospect

Thu, 22 Jul 2010 12:07:00 +1000

Finders Resources (AIM, ASX: FND) has reported encouraging drilling results from the Ojolali gold‐silver project in Sumatra, Indonesia, following a recent program of infill reverse circulation drilling at the Jambi oxide gold prospect.

The results delivered the best gold assays from the prospect to date, and strongly support the interpretation of high grade structurally controlled zones at Jambi. Assay highlights include:

- 24m @ 3.1 g/t Au at 9m depth in BKJR149, within a zone of 48m @ 2.0 g/t Au from surface
- 7m @ 9.6 g/t Au at 14m depth in BKJR138, within 19m @ 4.2 g/t Au from a depth of 11m
- 6m @ 7.1 g/t Au and 161 g/t Ag in BKJR148, within 21m @ 2.9 g/t Au & 85 g/t Ag from 90m depth

Russell Fountain, chairman, said the results underpin the strategy to unlock the value of the company's 72% owned-Ojolali project, where there are 20 named prospects located within a 10 x 4km mineralized district.

“The wide zones of near surface oxide gold mineralization will enhance the potential for a start‐up oxide gold mine at Jambi. In addition, resolution of the structural controls opens up the means for effective targeting of the outstanding deep exploration potential of the Ojolali area."

"The exploration success being achieved at Ojolali combined with the planned expansion at Finders’ Wetar copper project later this year leaves the company in an excellent position” he said.

In addition to the Jambi drilling, an 18 hole drill program was completed in June 2010 to test for near‐surface enriched silver mineralization at the nearby Tambang prospect. Results for these holes are awaiting assays which are expected within the next month.

The results of the 19‐hole program at Jambi will be incorporated into an updated resource estimate to be undertaken by Hellman & Schofield Pty Ltd.

The current Jambi JORC resource has a total combined indicated and inferred resource of 4.08 million tonnes at a grade of 1.05 g/t Au and 7.6 g/t Ag at a 0.5g/t Au cut off, containing 138,000 oz Au.

The district is typically characterized by widespread high gold and silver values in soil samples and these have been supported by encouraging rock channel samples from trenching activities previously reported.

Assays were undertaken by the Intertek Jakarta laboratory (ITS), using 50g fire assay (Code FA51) for gold, and ICP for other elements.

Finders believes that the Ojolali project has strong potential to generate cash flow through open pit CIL/CIP development of the gold resource at Jambi.

Finders Resources to lift Wetar copper production to 7,000 tonnes per year

Wed, 07 Jul 2010 07:11:00 +1000

Finders Resources (ASX, AIM: FND) has updated progress at the Wetar Copper Project on Wetar Island, Maluku Barat Daya in eastern Indonesia, with a Demonstration Plant and associated heap leaching facilities currently producing some 5 tonnes per day of high quality cathode copper.

The Wetar Copper Project (currently ~94% Finders) comprises two high grade copper deposits at Kali Kuning and Lerokis, together constituting a Proven and Probable Ore Reserve of 8.2 Mt @ 2.5% Cu using a 0.5% Cu grade cut-off.

Finders, in partnership with PT Batutua Kharisma Permai (BKP), on the basis of a positive Definitive Feasibility Study is currently completing detailed engineering and capital cost estimates for Stage 1 of two-stage ‘brownfields’ expansion planned to lift copper cathode production to 7,000 tonnes per year by expanding the current Demonstration Plant.

Subject to permitting and project financing, Finders expect to commence construction activities for Stage 1 by late Q3 2010.

Chris Farmer, managing director, said, “On the technical side, the successful operation of the Demonstration Plant provides us with significant confidence for the planned expansion and we have also benefitted from the proprietary knowledge gained from almost 17 months of sulphide leach operations."

"We continue to benefit from high levels of support from key departments of the Indonesian Government and the Province of Maluku and share their confidence that the Wetar Copper Project will play a key role in regional development.”

The Stage 2 project expansion to increase cathode production to ~23,000 tonnes per year will incorporate the bulk of the Whim Creek SX-EW plant (purchased by Finders from Straits Resources) and is expected to follow approximately a year after Stage 1.

The company said the Demonstration Plant has now produced approximately 1970 tonnes of copper cathode and the last six months have seen production at 96% of nameplate totaling 869 tonnes with sales of 800 tonnes at an average price of approximately US$7,100 per tonne (US$3.22 per lb.).

With 1,000 tonnes of potentially leachable copper remaining in the test heaps, copper recoveries approaching 70% from Heap 3 and predicted slower leach rates, the demonstration stage of the project is entering a new phase with a focus on upgrading equipment for the Stage 1 expansion and further experimenting with the operating parameters including Eh ranges targeting specific copper minerals.

The Stage 1 expansion will incorporate the whole of the current Demonstration Plant, expansion of the SX-EW plant and power supply, and new leach pads located within the old gold mining area immediately adjacent to the Kali Kuning ore-body.

To this end, the crusher has been refurbished, modifications completed on the SX plant and the neutralisation plant is being extended with larger tanks and the addition of a filter press.

The effects on leach rates by varying aeration and irrigation rates are being assessed and this work includes detailed size fraction assays and mineralogical studies.

Finders said detailed Stage 1 engineering design has been completed and all supplier and contractor tenders and inquires have been issued. Responses are due by mid July and this would allow for a revised capital estimate and schedule of Project delivery to be completed by end of July 2010.

Design work has commenced on components of Stage 2 based on importing and installing the Whim Creek plant now disassembled and packed in containers at the Whim Creek site. The company is aiming to provide a revised capital estimate for Stage 2 in the fourth quarter 2010 based on optimization of earthworks and use of Indonesian contractors.

As previously reported, Finders obtained its environmental impact assessment approval (AMDAL) in late March 2010. Following this approval, supporting documents in relation to the application for the Mining Permit required for Stage 1 and Stage 2 have been reviewed by a team from the Mines Department from the Province of Maluku and the Kabupaten (or sub-district) of Maluku Barat Daya.

The company expects a recommendation from the Mines Department for the Bupati to proceed with the issue of a mining permit during July. The result of the review indentified minor clarifications and requests for additional information which are expected to be completed within the next few weeks.

In advance of the award of the Mining Permit, a suite of follow-on permits which allow for import of equipment and construction activities to proceed have been progressed. Finders’ Indonesian operating company, PT Batutua Tembaga Raya (‘BTR’) has applied for a capital expansion with the Foreign Investment Board which will allow use of the “masterlist” facility to import equipment.

In addition, BTR has applied for a Building Permit, which when issued coupled with the existing environmental permit (AMDAL) allows for construction of the expanded SX-EW plant (Stage 1).

The company is currently seeking further clarification in regard to its application for a Location Permit, a form of land use permit, following an inconsistency identified between advice and permits obtained from the local government and the Forestry Department.

As a contingency measure, BKP is in the process of lodging applications for a forestry permit, supported by a recommendation from the Governor of Maluku. Deferral of the
permit may affect the startup of Stage 1. Finders will provide an update once further clarity is obtained.

Finders has received six provisional term sheets from potential sources of debt finance in respect to the Stage 1 expansion and scoped to accommodate Stage 2. The term sheets are currently being reviewed with a view to selection of a short list earmarked for the negotiation of definitive terms.

A number of representatives from potential lenders and Behre Dolbear Australia, as independent technical consultants, have completed site visits. The company is also considering other financing alternatives.

Finders Resources moves towards mining Ojolali gold project

Fri, 25 Jun 2010 06:17:00 +1000

Finders Resources (ASX, AIM: FND) expects to complete its current reverse circulation drilling program at the Ojolali gold-silver project in Sumatra by Friday 25th June and aims to increase open-pittable oxide resources to a level sufficient to support a viable start–up mining operation.

At the Ojolali Project (72% owned with option), Finders controls what it considers to be a major new epithermal gold district with strong potential to generate cash flow through open pit CIL/CIP development of the gold resource at the Jambi Oxide gold deposit.

To date 36 holes totaling 3,550m have been completed, with a final hole currently in progress. This work has focused on testing a previously unrecognized north-easterly trending vein system within the known oxide gold/mineralisation at the Jambi prospect.

It has also tested for high grade supergene enriched silver mineralisation within the top 100m of a 600m strike length of the extensive Tambang gold-silver vein system.

Visually, the drilling has supported the target geological concept in both cases, including a vein zone of approximately 20m true width at Tambang.

The company said the significance of the drilling will depend on establishing continuity of potential ore grades between holes.

Finders does not plan to release results for either system until all assay results are received, approximately 2 weeks for the Jambi drilling, and approximately 4 weeks for Tambang.

Finders Resources notes Wetar development financing progress

Thu, 27 May 2010 15:45:00 +1000

At its AGM, held earlier today, Finders Resources (AIM, ASX: FND) said the past 6 months have been a very busy period, marked by strong progress towards the company's goal of becoming a highly profitable copper producer. The company told investors that it is currently reviewing draft term sheets for its development financing, and it intends to select a preferred financier over the next few weeks.

The company is currently developing the Wetar copper project in Indonesia, where its demonstration plant has achieved steady-state ‘nameplate’ capacity of 5tpd (tonnes per day) with 598 tonnes of copper being produced between January and April.

Finders also noted that it has adopted a low risk, two-stage expansion strategy, which sees the expansion of the current demonstration plant to 7,000tpa capacity in stage one, and a further increase to 23,000tpa in stage two - with the reconstruction of the 18,000tpa Whim Creek SXEW (solvent extraction and electrowinning) plant at Wetar.

The company said that the outstanding matters required to commence construction – including final mining and import permitting, development finance, and detailed engineering - are all at an advanced stage, as such it is poised for rapid growth in the months ahead.

In respect of the development finance, Finders told investors that a team from Behre Dolbear - an independent expert for a number of interested banking groups - recently completed a site visit, and the company is currently reviewing draft term sheets with a view to selecting a preferred financier for the project over the next few weeks.

In terms of Wetar’s final mine development permits, Finders said it is now in the final stages of preparation, following the approval of the project's environmental development, operational and closure plan (AMDAL) by the Provincial Government in early April.

Once the permitting and financing is concluded, Finders ‘best projection’ sees Stage 1 expansion taking up to 9 months to complete, with production continuing from the existing demonstration plant throughout the construction phase.

Finders also highlighted the positive pricing trends, “Despite the current uncertainties on world financial markets, the copper price remains strong, with many forecasters predicting ongoing strength”. Furthermore, the company said it has a very robust project at Wetar, as the revenue stream from the existing demonstration plant underpins the company's finances.

Elsewhere, the company is minimising exploration expenditures prior to completion of funding of the Wetar development, however its still maintaining a pipeline of projects for future growth. In Sumatra, at the Ojolali gold-silver project, Finders completed 15 holes of a 40 hole, 4,000m reverse circulation (RC) drilling program targeting additional near surface gold and silver resources.

Finders Resources copper production up in Q1, Wetar demo plant exceeds nameplate capacity

Thu, 29 Apr 2010 19:14:00 +1000

Finders Resources (AIM, ASX: FND) called its performance during the first quarter “exceptional”, with the Wetar copper project in Indonesia benefiting from strong operating results and the planned staged expansion to 23,000 tpa (tonnes per annum) copper cathode remaining on track.

The group plans to complete the detailed engineering for the 7,000 tonnes per year Stage 1 expansion of the project in June 2010. Stage 2 detailed design based on relocating the Whim Creek SX-EW plant from Australia to Indonesia have commenced and are scheduled to complete in Q4 2010.

The 5t-a-day solvent-extraction and electrowinning (SX-EW) demonstration plant exceeded its nameplate capacity with 453 tonnes of Grade A cathode produced in the period with 361t sold. As the efficiency of the operations increased, the quality of copper cathode increased with impurity levels for all elements totalling 6 ppm (parts per million).

Other developments included the approval of an environmental impact study and environmental management & monitoring plans. In Q4 2009, 254t of copper was produced and 240t sold.

The dismantling of the Whim Creek plant has been completed on time. The containerised equipment is currently awaiting transport to Indonesia. Detailed engineering for the exanded demonstration plant are nearing completion. The company is currently in talks with a number of potential financiers to secure the necessary funds for development.

Diamond drill testing of Way Neki and Jambi northern extensions at the Ojolali gold-silver project is now complete and has returned sporadic high grades at Way Neki and wide low grade intercepts at Jambi.

Other developments included the sale of the company’s entire stake in Geopacific Resources for A$826,000.
The Wetar Copper Project comprises two high grade deposits, Kali Kuning and Lerokis, located within 3 km from the coast and suitable for open pit mining.

Earlier this month, the company said that the Environmental Impact Assessment (known as AMDAL in Indonesia) relating to Wetar has been approved by the Governor of Maluku. Approval has been received for several key documents which cover the entire mine life of the Wetar Copper Project and include the: Environmental Impact Analysis (AMDAL), containing definition of the environmental baseline; Environmental Management Plan (RKL), together with mine closure objectives; and Environmental Monitoring Plan (RPL).

Finders reported a cash balance of A$5.3 million compared to A$7.6 million at the end of the previous quarter. Receipts from product sales and related debtors amounted to A$2.8 million.

Finders Resources copper production up in Q1, Wetar demo plant exceeds nameplate capacity

Thu, 29 Apr 2010 18:48:00 +1000

Other developments included the approval of an environmental impact study and environmental management & monitoring plans. In Q4 2009, 254t of copper was produced and 240t sold.

Finders reported a cash balance of A$5.3 million compared to A$7.6 million at the end of the previous quarter. Receipts from product sales and related debtors amounted to A$2.8 million.

Finders Resources obtains environmental permit for Wetar Copper Project

Fri, 09 Apr 2010 11:40:00 +1000

Finders Resources (ASX, AIM: FND) has reported that the Environmental Impact Assessment (known as AMDAL in Indonesia) relating to the Wetar Copper Project has been approved by the Governor of Maluku; as recommended by the Regional Environmental Impact Management Agency (BAPEDALDA).

The AMDAL covers an independent and comprehensive assessment of major and significant impacts likely to result from the proposed project activity.

Approval has been received for several key documents which cover the entire mine life of the Wetar Copper Project and include the: Environmental Impact Analysis (ANDAL), containing definition of the environmental baseline; Environmental Management Plan (RKL), together with mine closure objectives; and Environmental Monitoring Plan (RPL).

Finders’ Managing Director, Chris Farmer commented “the award of the environmental permit is a major milestone in the development of the Wetar Copper Project, and is the product of a successful definitive feasibility study, constructive relationships established with our host community over 15 years and the firm support of both the Maluku and Maluku Barat Daya regional Governments in Indonesia."

The AMDAL approval is a pre-requisite for, and now enables Finders to finalise, documents supporting the mining and processing licenses.

Finders has also reported that the demonstration plant at Wetar achieved nameplate production for the March 2010 quarter. Copper cathode produced was 453 tonnes, slightly in excess of the 450 tonne nameplate capacity for the quarter.

The company said this production result builds on the operational experience gained over the past year and provides an excellent platform from which to develop the project to full commercial scale.

"As our transition from explorer to producer gathers momentum, the environmental approval coupled with the excellent performance of the demonstration plant and current strong copper prices provide a firm platform for expansion of the Wetar Copper Project to its final design level of 23,000 tpa of copper cathode,” Farmer added.

Finders said Development activities have progressed on schedule during this period. Detailed design for the 7,000 tonnes per year Stage 1 expansion of the project is planned to be completed in June 2010.

The design managers are Brisbane based groups Electrowin and Neubau Engineering who have extensive combined experience in the engineering, design and delivery of copper SX-EW operations.

Various tender inquiries are in progress with Indonesian suppliers and contractors.

Stage 2 detailed design based on relocating the Whim Creek plant to Indonesia have commenced and are scheduled to complete in Q4 2010.

Finders have appointed Geoff Hiller as Project Manager Wetar and he will report to Rob Thomson (Executive Director Development).

Hiller has a mining and civil engineering background and for the past 3 months has been responsible for the successful decommissioning of the Whim Creek SX-EW plant in Australia.

The Whim Creek plant disassembly has been completed on time and within budget and its components are currently containerized ready for transportation.

Finders Resources H2 2009 pretax loss narrows to A$3.1m as sales revenues soar

Tue, 16 Mar 2010 19:03:00 +1100

Finders Resources (AIM&ASX: FIN) has released its financial report for the six months to 31 December 2009 to comply with AIM regulations after changing its financial year-end from 30 June to 31 December.

AIM rules require that the company publish principal financial statements including the balance sheet, cash flow and comprehensive income statements, with comparative information for the previous corresponding period.

Finders announced last week it had received official approval to change its financial year-end to align the balance dates of companies in the group, which will be effective from 31 December 2009, and flagged it would publish the first financial report for the six months ended 2009 today, 16 March.

Finders said today that its pretax loss narrowed from A$5.68 million to A$3.1 million as sales revenues soared to A$2.98 million from A$51,000. The company had current cash and cash equivalents of A$7.6 million compared to A$412,000 as at 31 December 2008, while its total current assets amounted to A$11.2 million at the end of the period compared to A$993,000 at 31 December 2008.

Total assets increased from A$22.25 million to A$37.46 million.

Back in late January the company said the definitive study (DFS) at its Wetar copper project estimated life of mine costs at US$1/lb of copper. As scoped the project DFS arrived at a Net Present Value (NPV) of US$240 million pre‐tax at $6,500/t copper, with a total funding requirement of up to US$118 million.

Late last year, the company acquired Whim Creek SX-EW (solvent extraction and electrowinning) plant from a subsidiary of Straits Resources Ltd. The Whim Creek plant has a producing capacity of 18,000 tonnes of copper cathode per annum and is suited to Finders’ needs at its Wetar copper project in Indonesia.

Diamond drill testing of new areas of epithermal gold silver veining at Way Neki at the company’s Ojolali gold-silver project is currently underway with the goal of increasing the oxide gold resource to over 300,000 oz of gold.

Finders Resources changes year-end date to 31 December

Wed, 10 Mar 2010 21:36:00 +1100

Finders Resources (AIM, ASX: FND) has received official approval to change its financial year-end from 30 June to 31 December to align the balance dates of companies in the group, which will be effective from 31 December 2009 with the first financial report for the six months ended 2009 set to be released on 16 March.

Back in late January the company said the definitive study (DFS) at its Wetar copper project estimated life of mine costs at US$1/lb of copper. As scoped the project DFS arrived at a Net Present Value of US$240 million pre‐tax at $6,500/t copper, with a total funding requirement of up to US$118 million.

Late last year, the company acquired Whim Creek SX-EW (solvent extraction and electrowinning) plant from a subsidiary of Straits Resources Ltd. The Whim Creek plant has a producing capacity of 18,000 tonnes of copper cathode per annum and is suited to Finders’ needs at its Wetar copper project in Indonesia.

Diamond drill testing of new areas of epithermal gold silver veining at Way Neki at the company’s Ojolali gold-silver project is currently underway with the goal of increasing the oxide gold resource to over 300,000 oz of gold.

Finders Resources ticks off "positive" Wetar Copper Project DFS

Fri, 29 Jan 2010 12:50:00 +1100

Finders Resources (ASX: FND) ticked off a Definitive Feasibility Study for the Wetar Copper Project during the December quarter, which was positive with estimated life of mine operating costs of US$1.00/lb Cu.

The Wetar copper resource is contained in 2 separate massive sulphide deposits, Kali Kuning and Lerokis in eastern Indonesia which are located within 3km from the coast and suitable for open pit mining.

As scoped the project DFS arrived at an Net Present Value of US$240 million pre‐tax at $6,500/t Cu, with a a total funding requirement of up to US$118 million.

The DFS envisaged three stages of project development, with Stage 1 being the expansion of the current 1,800 tpa copper cathode demonstration plant to 5,000 tpa, followed by Stage 2, final expansion to 23,000 tpa copper cathode utilizing the Whim Creek SX‐EW plant. Stage 3 is the development of the Lerokis pit and haulage of Lerokis ore to the Kali Kuning plant to maintain copper cathode production at 23,000 tpa.

During 2009 Finders constructed and operated a 5 tonne per day SX‐EW demonstration plant to optimise process design and provide data required for the Definitive Feasibility Study. The test heaps are at heights similar to commercial operations worldwide and the SXEW technology being used is industry standard. SX‐EW technology is currently responsible for approximately 22% of the world’s copper production.

On 23rd December 2009, Finders completed the outright purchase of the Whim Creek SX‐EW plant from a subsidiary of Straits Resources Limited (ASX: SRL).

The Whim Creek SX‐EW plant can produce up to 18,000 tonnes of copper cathode per annum and is well suited to Finders’ needs at the Wetar Copper Project.

With the plant, Finders can move closer towards development of the full scale project, by providing certainty of both supply and timing for key components for the development, as well as significant cost savings compared to the purchase of new equipment.

The Whim Creek plant is currently located in Western Australia.

Finders has already commenced dismantling work and preparations for transportation to Wetar.

The Expanded Demonstration Plant project delivery study has been completed. A revised scope contemplates a 7,000 tpa cathode capacity (up from 5,000 tpa). This will use the Whim Creek plant to reduce capital requirements. Board approval is scheduled for next quarter.

At Finders' Ojolali Gold‐Silver Project, diamond drill testing of new areas of epithermal gold silver veining at Way Neki is underway.

The strategy at Ojolali is to increase the oxide gold resource to +300,000 Oz Au, to provide the basis for a low cost 30‐50,000 Oz gold per year open pit mine based on the Jambi oxide resource, and to use the cash flow from this plant to fund exploration for additional resources and progressive expansion of the project.

Initial results include: 1 m at 8.13 g/t Au from 60.7m in WNK04 and 6.25m at 1.3 g/t Au and 24 g/t Ag from 14.7m in WNK01.

A detailed remodelling of geological controls for the Jambi oxide gold deposit is now complete.

As at 31 December 2009, Finders had $7.6 million in cash.

A total of 13,421,439 fully paid ordinary shares were issued to a subsidiary of Straits Resources Limited in consideration for the acquisition of the Whim Creek SX‐EW plant.