Company Information for Finders Resources Ltd
Company stock charts - 6 Month chart
Company Statement
Finders is an emerging copper producer targeting 20-25000 tpa copper production from its Wetar Copper Project (FND ~85%) in Indonesia, and also controls an advanced gold-silver project at Ojolali (FND 72%) in Indonesia.
- At Wetar Copper, as part of the project feasibility study, Finders is constructing a semi-commercial scale demonstration plant, including a 100,000 tonne test heap and 5t/d SXEW facility. Due for commissioning in January 2009 this plant will ramp up to 150t of cathode copper /month, and produce significant cash flows from Q1 2009 onwards.
- The Ojolali leases cover ~50 km2 containing widespread near surface epithermal gold-silver mineralization. Work at Ojolali is focussed at establishing a 200,000 ounce oxide gold resource to justify a 50,000 oz/year start-up gold mining operation to fund ongoing exploration and growth of the area.
Finders has a highly accomplished management team, extensive Indonesian operating experience, and quality mining projects to drive rapid growth.
Current Operations
The Wetar Copper Project was acquired by Finders, in cooperation with its Indonesian partner, PT Batutua Kharisma Permai (“BKP”), by means of an Exploration KP licence granted in December 2004.
Finders currently holds a 72.4% interest in the project, held through an Australian incorporated company, Banda Minerals Pty Ltd (“Banda”). Finders is earning increasing equity through sole funding work on the project.
The Wetar deposits were discovered by CSR Ltd during a regional exploration program in 1986. The holding company for the then Contract of Work was sold to Billiton Indonesia BV (“BMI”) in 1988. BMI carried out extensive drilling comprising 513 holes for 10,500 meters to define gold-silver mineralisation at two main deposits;
Kali Kuning, located around 3km from the coast at elevations of around 150m, and Lerokis, located around 6km from the coast at around 500m above sea level.
BMI discovered copper mineralization immediately underlying the gold ore in both deposits and a smaller satellite deposit was also discovered at Meron, around 2km east of Kali Kuning.
Gold-silver-barite ores were mined by BMI from shallow open pits at Lerokis and Kali Kuning over the period 1990-1997.
Based on the previous drilling data and 73 new diamond drilled holes by Finders, Kali Kuning and Lerokis have independently estimated Measured, Indicated and Inferred Mineral Resources of 9.8 million tonnes, grading 2.5% Cu and 0.7 g/t Au, using a 0.5% Cu cut-off grade.
The deposits are mineable by low strip ratio open pits and benefit from having a coastal location. Additional copper and gold mineralisation exists at Meron, and rights to three additional exploration Tenements were acquired by Finders in October 2006, covering known occurrences of similar style copper-gold mineralization on the south coast of Wetar Island.
Highlights
- Commercial scale demonstration plant with 100,000t test heap under construction
- 5tpd Cu SXEW plant start-up early January 2009
- Targeting 80% ultimate Cu recovery, through bacterial heap leaching
- Strong exploration upside
- Permitting process on track
- Robust, high grade Resource Base (JORC)
- Open pit mining, low strip ratio, coastal location
- Feasibility study - Heap leach SXEW operation to produce 20-25kt cathode/year
Fast Track Schedule - Target Time Lines
- Q3 2008 test heap commence irrigating
- Cathode copper production from January 2009
- Cash flow from Demo plant from February 2009, up to 150t Cu cathode / month
- Complete feasibility study for full scale 25,000tpa plant April 2009
- Target initial production April 2010
Ojolali Gold-Silver Project
The Ojolali Priject is approximately 6km from the town of Bara Datu, in the Kabipaten of Way Kanan. Bara Datu os serviced by the Sumatra power grid and is a four hour drive along the Trans Sumatra Highway from the nearest airport at Banda Lampung.
Ojolali is located within the highly productive Sunda Arc gold belt which hosts a number of significant gold deposits owned by other parties, including Gunung Pongkor (6Mt @ 17g/t Au, 162 g/t Ag) and the Lebong district. In the later district, epithermal gold deposits have produced approximately 3 million oz Au at Lebong Tandai and Lebong Donok. Sixty Kilometers south of Ojolali, feasibility studies have been completed at Way Linggo which has proven and probable reserves of 408,472t at 9.1 g/t Au and 145G/t Ag.
Finders acquired its initial interest in the project area in April 2005, under a Cooperation Agreement with PT Batutua Kharisma Permai (“BKP”) and Great Northern Resources Ltd, through the grant of exploration KPs covering 3450 Ha to BKP. In March 2006, Finders increased its interest in the project to 71.7%, with potential to increase its equity to 100% if the partners elect not to fund their share of development after completion of a positive feasibility study.
In February 2007, the old KPs were restructured in the name of a project specific company, PT Batutua Way Kanan Minerals (“BWKM”) and an additional KP granted, covering extensions to the mineralized system, bringing the total area controlled by the project to ~5,900 Ha.
Previous exploration on the property was mainly carried out by Antares Mining and Exploration Corporation (“Antares”) which completed 22,000 m of shallow diamond drilling, in 212 holes, between 1997 and 1999, targeting two main prospect areas, the Jambi gold prospect and the Tambang Silver-gold prospect.
Since acquiring the project, Finders has carried out an intensive exploration program, comprising diamond drilling to confirm the resource base at the Jambi and Tambang prospects, and an extensive program of grid geological mapping, followed up by detailed gradient array IP surveys to define and rank additional prospect within the project area.
Jambi, with a near surface oxide gold resource (JORC Inferred) of at least 100,000 oz Au comprises a near term open pit development prospect.
Tambang, which is also unclosed at depth and along strike to the north, has a current Inferred Mineral Resource of 39.5 million ounces of silver, plus 170,000 ounces of gold.
Other prospects have outstanding potential for the discovery of additional resources using modern geophysical techniques to optimize drill targeting. Widely spaced drilling has clearly indicated potential for high grades of both gold and silver, and the overall potential is enhanced by continued activity by “local“ miners in areas not previously subject to drill testing.
Highlights
- Major new epithermal district (+25km)
- ~1 million Oz Au Equiv. in inferred resources at Jambi & Tambang
- New Targets defined by soil geochemistry/geophysics
- High potential for additional discoveries
Project Status
- Upgraded Resource Estimate for Jambi oxide gold, 138 Oz Au, plus significant potential for additions
- Inferred sulphide resource at Tambang (7.9 Mt @ 167 g/t Ag and 0.7 g/t Au at a 1 g/t cut- off) with untested potential for enriched oxide cap
- Additional target areas defined by new soil geochemistry
Ojolali Development Strategy
- Plan start-up 50K oz Au pa open pit at Jambi for cash flow
- Feasibility and permitting by Q3 2009
- Initial Production 2010
- On going exploration to increase resource base
- Multi million ounce potential
Geographical Spread
Indonesia
Board of Directors and Key Management
| Board of Directors
|
| Dr Russell Fountain | Director, Executive Chairman
|
| Dr Chris Farmer | Director, Managing Director
|
| Mr Robert Thomson | Executive Director, Development
|
| Mr Michael Stirzaker | Finance Director
|
| Mr Steve Lonergan | Non Exec. Director
|
| Mr Stephen de Belle | Non Exec. Director
|
| Mr Thomas Quinn Roussel | Director
|
| Mr Ian Morgan | Company Secretary
|
| Executive Management
|
| Mr Grant Harding | Operations Manager |
Company Address
Suite 51
Level 3
330 Wattle Street Ultimo, New South Wales, Australia 2007
|
| Additional Address/Key Contact
Jakarta Office 931 Patra Office Tower Jl. Jend. Gatot Subroto Kav 32-34 Jakarta Selatan Indonesia |
Nominated Brokers
JMFinn Capital Markets Limited
4 Coleman Street
London EC2R 5TA
United Kingdom | | Nominated AdvisorsRFC Corporate Finance Limited
Level 14
19-31 Pitt Street
Sydney NSW 2000
Australia |
Broker/Analyst Reports
30/01/08 - HansonWest House
07/01/08 - Hoodless Brennan
Major Shareholders
| SHAREHOLDER % Shares
|
| EXSOLUTIONS PTY LIMITED* | 7.5% | 6281202
|
| MR IAN DVAID NEUSS* | 6.8% | 5736543
|
| TENNANT METALS PTY LIMITED | 6.5% | 5437561
|
| DR CHRISTOPHER BEN FARMER | 6.4% | 5389535
|
| LUJETA PTY LTD | 6.0% | 5000000
|
| RESOURCE CAPITAL FUND IV L P | 6.0% | 4990020
|
| HSBC GLOBAL CUSTODY NOMINEE (UK) | 5.0% | 4455000
|
| HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED | 3.6% | 3022366
|
| MR STEPHEN DE BELLE | 2.7% | 2254664
|
| DARLEY PTY LIMITED | 2.7% | 2253000 |
Related News
16/06/09 -
Finders Resources Continues To Make Progress On The Wetar Copper Project In Indonesia22/01/09 -
Finders Resources Will Produce Copper Cathode From Its Demonstration Plant At Wetar Early Next Month04/03/08 -
Finders Resources Puts The Bugs To Work At Wetar
Most Recent Statement
25/06/09 -
Wetar Project Update 03/06/09 -
Appointment of Finance Director01/06/09 -
Option to Acquire Processing Plant29/05/09 -
Significant Shareholders14/05/09 -
Release of Restricted Securities from Escrow14/05/09 -
Capital Structure