ShareCafe Posted March 29, 2004 Share Posted March 29, 2004 WESTONIA MINES LIMITED Link to comment Share on other sites More sharing options...
The_Muns Posted March 29, 2004 Share Posted March 29, 2004 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. Link to comment Share on other sites More sharing options...
haspete Posted March 29, 2004 Share Posted March 29, 2004 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 Link to comment Share on other sites More sharing options...
The_Muns Posted April 14, 2004 Share Posted April 14, 2004 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. Link to comment Share on other sites More sharing options...
The_Muns Posted May 4, 2004 Share Posted May 4, 2004 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. Link to comment Share on other sites More sharing options...
trachtub Posted November 10, 2004 Share Posted November 10, 2004 In reply to: The_Muns on Wednesday 05/05/04 02:15am seems to be a bit of interest around this one, any news? Link to comment Share on other sites More sharing options...
monoply Posted November 11, 2004 Share Posted November 11, 2004 They have my attention!! Link to comment Share on other sites More sharing options...
The_Muns Posted November 23, 2004 Share Posted November 23, 2004 Water could be an issue at the mine site. I'd be waiting. Link to comment Share on other sites More sharing options...
Dan_ Posted May 9, 2005 Share Posted May 9, 2005 QUOTE (The_Muns @ Wednesday 24/11/04 01:49am) Placed in a trading halt today? any idea's or holders? Link to comment Share on other sites More sharing options...
Dan_ Posted May 11, 2005 Share Posted May 11, 2005 In reply to: Dan_ on Monday 09/05/05 01:57pm any news on the new announcement? Link to comment Share on other sites More sharing options...
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