Definitive Feasibility Study

RNS Number : 3539P

Pathfinder Minerals PLC

03 October 2011

 

Embargoed: 0700hrs 3 October 2011

Pathfinder Minerals Plc

("Pathfinder Minerals" or the "Company")

Appointment of Definitive Feasibility Study Manager

&

Grant from South African Department of Trade and Industry

Pathfinder Minerals Plc, the natural resources company with licences to mine heavy minerals sands in Mozambique, has appointed Jacobs Matasis (Pty) Limited ("Jacobs Matasis") to carry out a Definitive Feasibility Study ("DFS") to help enable the Company's heavy mineral sands assets to progress through bankable feasibility, leading up to mine construction. The DFS has begun and is projected to take twelve months, a reduction of six months on the Company's previous estimate.

Jacobs Matasis was chosen as the preferred contractor for the DFS because of its extensive track record in global minerals sands projects and its direct experience in Mozambique. Based in Johannesburg, Jacobs Matasis is an incorporated company, owned 74% by a subsidiary of Jacobs Engineering Group Inc. (NYSE:JEC), and 26% by Matasis Investment Holding (Proprietary) Limited. Jacobs Engineering Group Inc. is one of the world's largest and most diverse providers of technical, professional, and construction services, including to the mining and minerals industry.

Jacobs Matasis' scope of work includes detailed analysis of the ore body, specifically on the depth and particular grades of the various ilmenite, rutile and zircon constituents, across the Company's 32,000 hectares of minerals sands deposit.  

The DFS, in addition to other consultant findings, is expected to contribute to the Company's:

·      financial evaluation of the project;

·      design of the precise mining methodology to be implemented;

·      identification of the optimum metallurgical processing route;

·      identification of the related infrastructure requirements;

·      anticipated saleable tonnage rate;

·      updated environmental and social impact assessment report;

·      determination of the precise mine dredge specifications;

·      determination of the required primary concentrator plant specifications;

·      determination of the required mineral separation plant specifications;

·      determination of the jetty specifications (including cost benefit comparison of transhipment barge versus dredged channel methods);

·      determination of power line connectivity requirements;

·      determination of office, accommodation, and airstrip locations;

·      water reticulation plans; and

·      project risk management analysis.

Grant from the South African Department of Trade and Industry

Pathfinder Minerals is delighted to announce that the award of the DFS to Jacobs Matasis has won support from the South African Department of Trade and Industry in the form of a Capital Projects Feasibility Programme grant. The terms of the grant are expected to reduce Pathfinder Minerals' costs of the programme by USD 700,000 over the twelve month period of the project.

Nick Trew, Chief Executive, commented:

"The appointment of Jacobs Matasis and commencement of the Definitive Feasibility Study is a very significant event in the development of our assets. Jacobs has a highly experienced, integrated minerals sands engineering and costing study team, many of whom have had direct previous involvement on recent minerals sands projects within close proximity of Pathfinder Minerals' Naburi and Moebase concessions in Mozambique. Such experience has enabled us to reduce our estimate of the timetable for the completion of the DFS from our initially-envisaged eighteen months to twelve months."

Bob Irvin, Group Vice President, Jacobs , said:

"Jacobs Matasis looks forward to working as part of the integrated team with Pathfinder Minerals and its other consultants to execute this DFS. We bring considerable minerals sands and relevant regional expertise to the team and are focused on delivering a quality product which will fulfil Pathfinder Minerals' objectives."

Enquiries:

Pathfinder Minerals Plc

Nick Trew, Chief Executive

Tel. [phone]

Daniel Stewart & Company Plc

Oliver Rigby or James Thomas

Tel: [phone]

M: Communications

Ben Simons or Maria Souvorov

Tel: [phone] /2327

Notes to Editors

About Pathfinder Minerals

Pathfinder Minerals has mining concessions covering approximately 32,000 hectares of land, on the Indian Ocean coast of the Zambezia province of Mozambique, known to contain the heavy minerals, ilmenite, rutile and zircon.

The concessions, known as Naburi and Moebase and formerly held by BHP Billiton, are over land located near the Indian Ocean coast of Mozambique. Historical reported mineral resources on the assets are estimated at 2.02 billion tonnes with a 3.55% total heavy mineral content, which is equivalent to approximately 71.7 million tonnes of contained heavy minerals. Confirmatory drilling and metallurgical test work will be required to upgrade the classification of the mineral resources.

Exploration work conducted on the licences from the mid-1980s through to 2002 has identified significant mineralisation. Bulk sampling and metallurgical test work conducted in support of prefeasibility and feasibility studies in the mid-1990s indicates that valuable heavy minerals can be recovered using conventional dredge mining, wet concentration and dry mineral separation processes.

The Company is undertaking a detailed feasibility study with a view to developing a mine for commercial extraction.

www.pathfinderminerals.com 

Heavy Minerals Sands

The more valuable components of a heavy minerals sands deposit include the titanium oxide minerals ilmenite and rutile and, in addition, zircon.  Ilmenite and rutile are used to produce titanium dioxide pigment used in the production of paint, paper, plastic, textiles, rubber and pharmaceutical products. Zircons are commercially mined for the metal zirconium and are used for abrasive and insulating purposes.

About Jacobs Matasis (Pty) Ltd.

Jacobs Matasis Pty Ltd is an incorporated company, owned 74% by a subsidiary of JacobsEngineering Group Inc. (NYSE:JEC), and 26% by Matasis Investment Holdings Pty Limited. Matasis Investment Holdings provides meaningful participation in the South African economy working with successful investee companies: facilitating the involvement of historically marginalised communities in the economic prospects and growth in South Africa.

About Jacobs Engineering Group Inc.

Jacobs Engineering Group Inc. is one of the world's largest and most diverse providers of technical, professional, and construction services.

www.jacobs.com

 

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