EVN - EVOLUTION MINING LIMITED

[ShareCafe]

WESTONIA MINES LIMITED

[The_Muns]

Cheers Admin,

 

Was given a tip from some friends in Westonia that these guys are about to start construction on a camp very soon.

 

I found a brokers report recommending a buy at 42c early this year, but can I find it again, NO http://www.asxboard.com/html/emoticons/grrr.gif

 

 

Can any of you mining nuts give me a run down on the fiqures

 

Sydney - Monday - January 12: (RWE) - Westonia Mines Ltd today

announced that consequent upon its recent and successful Big Pit

Drilling Initiative, independent statistical estimates have boosted the

Westonia Project resource base above 1 million ounces.

The indicated resource is up from 13.1Mt at 1.40g/t gold for

590,000 ounces to 18.9Mt at 1.33g/t gold for 810,000 ozs.

Indicated plus inferred resource is up from 20.3Mt at 1.40g/t

gold for 910,000 ozs to 24.3Mt at 1.33g/t gold for 1.04 million ozs.

In light of the resource tonnage increases, the company is

assessing the potential to run a higher-grade mining operation.

Westonia shares today rose 0.5c to 39c.

 

But at the moment these guys look very cheap and would like any opinions.

 

 

[haspete]

IN REPLY TO A POST BY The_Muns, Mon 29/03/04 07:30pm

Hi Muns,

Yes this one was pushed buy Fats, but to me is not in the right place, it is in the wheat belt of WA but so close to Southern Cross it is not funny!!! to me it is a long shot!!! have a look at MWE better ground I feel!!! I don't hold. but I could be wrong!

cheers Pete

[The_Muns]

Enjoy.

 

Contact Details: Westonia Mines Limited ABN 074 084 669 036

9 Havelock Street, West Perth, WA 6000 Telephone: +61 8 9321 3088 Facsimile: +61 8 9321 8804

Email: manager@westoniamines.com.au Web site: www.westoniamines.com.au

ASX Codes: WEZ, WEZO

BANKABLE FEASIBILITY STUDY COMPLETED

H I G H L I G H T S

♦ Feasibility study on open cut mining and CIP processing has

been completed.

♦ Project financing will now be sought.

♦ Considerable upside potential is demonstrable.

♦ The Project is strongly leveraged to any future Australian gold

price rise.

♦ Mid 2005 production commencement is planned.

♦ Now to turn to appraisal of the underground potential.

Enquiries:

Andrew Drummond, Managing Director

Bankable Feasibility Study Completed

- 2 -

Westonia Mines Limited is pleased to announce completion of its Bankable Feasibility

Study (BFS) into resumption of gold mining and processing at its wholly owned Westonia

Project, Western Australia. Final documents will be delivered by 30 April 2004 for

assessment by the Board.

The Company intends immediately to initiate negotiations to secure Project finance.

These will be subject to Board and shareholder approval, as required.

1. Base Case Operation

For project financing purposes, the Company has designed an interim pit based only

on Indicated Resources and on a realized gold price of $575.

The BFS has been completed for the following Base Case:

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Ore Reserve 12.8 Mt @ 1.3 g/t (mining diluted)

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Recovered gold 520,000 ounces (including 40,000 ozs from 2.4 Mt of oxide

stockpiles)

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Hardrock throughput 2.2 Mtpa

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Waste to Ore Ratio 2.2:1

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Mine life 6.3 years

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Average gold production approximately 90,000 ozs/yr

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Cash cost $420/oz

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Maximum pit depth 205 metres

It will be recalled that subsequent flooding of the previous operatorÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s open pit has

precluded WEZ drill access to the zone immediately below that pit. This results in

estimation of resources at the Inferred category in much of that interval. The Base

Case Pit contains a further 1.1 Mt @ 1.3 g/t in the Inferred category. Full conversion

of this to ore during the mining operation would:

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ recover a further 45,000 ounces

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ decrease waste to ore ratio to 1.9:1

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ lower cash costs by about $15/oz

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ increase mine life by 6 months.

2. Capital Costs

The Big Bell processing plant has already been purchased for $2.5M and will be

relocated to site.

Capital costs for construction and 10% contingency total $34.5M.

Current plans for pre-production mining and for prudent working capital total $9.0M.

Bankable Feasibility Study Completed

- 3 -

3. Project Financing

The Company is now seeking Project financing via a mix of debt and equity. Prime

Corporate Finance Pty Ltd (PCF) has been engaged to manage the debt finance

component. WEZ and PCF are currently and jointly finalizing a Debt Information

Memorandum which will be made available to lending institutions next week.

4. Hedging Policy

The relatively low estimated grade of Westonia ore makes Project economics

particularly sensitive to gold price. The Company intends to optimize the balance

between appropriate hedging protection against a fall in the gold price, while

maintaining a exposure to any future increases.

5. Potential Upsides

The Westonia mineralized system is large, continuous to at least 700 m depth and

can be open pit mined with a low waste to ore ratio. Indicated and Inferred

resources to a depth of 300 m have been revised upwards to 24.5 Mt @ 1.4 g/t for a

contained 1,070,000 ozs.

Increases in any of grade, gold price, operating margins or convertability of Inferred

to Indicated status resources would lead to improved Project economics, mine life

and margins. Some illustrative examples follow:

(a) Grade Increase

The resources have been estimated by independent consultants. The

approach to grade estimation has been conservative, and the Company

considers that there is reasonable potential for it to increase by up to 10%.

(b) Conversion of Inferred Resources

At current (over AUD550/ounce) spot gold price and allowing for a reasonable

hedging performance to give an average hedged price of approximately

$600/oz, a larger pit designed to capture Indicated and Inferred resources

would recover 610,000 ozs at only marginally increased operating costs

compared to the Base Case Pit.

© Price Increase

Should gold regain its maximum Australian price of the last 12 months, and

allowing for a reasonable hedging programme, a yield of $750/oz would result.

A pit based on Indicated and Inferred resources would allow recovery of

840,000 ozs (including from the oxide stockpiles) again at about the same

operating cost as the Base Case, and with a waste to ore ratio of 1.85:1.

Bankable Feasibility Study Completed

- 4 -

6. Start up

Allowing for the time to obtain Project finance and for a 10 month construction period,

the Company is aiming for first gold pour in mid 2005.

7. Underground Mining

The key to longevity of the Westonia operations is a resumption of underground

mining of its large mineralized system. During 2003, the Company was heartened

by:

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Results from the Big Pit Initiative drilling ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ numerous strong gold

intersections (as previously reported) are not captured by current pit designs.

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Results from its Deeps Initiative drilling, e.g.:

WDD096 632.7 ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ 652 m 19.3 m @ 5.5 g/t

Including 632.7 ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ 633.6 m 0.9 m @ 51.4 g/t

649.5 ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ 652 m 2.5 m @ 21.1 g/t

WDD097 608.4 ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ 614.2 m 5.8 m @ 20.6 g/t

The Company is looking to recommence deep drilling later in the year. The aim will be to

test for the continuity of the mineralized host system to a depth of about 1000 m. It also

intends to establish an underground resource that could be accessed using the existing

decline, which is currently at a depth of 264 m.

Andrew Drummond

Managing Director

Competent Person Declaration

The information on mineralization in this report accurately reflects information prepared by competent persons (as

defined by the Australasian Code of Reporting of Identified Mineral Resources and Ore Reserves). It is compiled

by A.J. Drummond, an employee of the Company who is a Fellow of The Australasian Institute of Mining and

Metallurgy with more than requisite experience in the fields of activity in which he is reporting.

[The_Muns]

I see these guys didn't take a big hit in the mining drop last week and actually gained today.

 

May be the fundementals are better than expected.

[trachtub]

In reply to: The_Muns on Wednesday 05/05/04 02:15am

seems to be a bit of interest around this one, any news?

[monoply]

They have my attention!!

[The_Muns]

Water could be an issue at the mine site.

 

I'd be waiting.

[Dan_]

QUOTE (The_Muns @ Wednesday 24/11/04 01:49am)

Placed in a trading halt today? any idea's or holders?

[Dan_]

In reply to: Dan_ on Monday 09/05/05 01:57pm

any news on the new announcement?