FEASIBILITY STUDY RECOMMENDS MINE DEVELOPMENT AT KALIMASH.
KALIMASH PROJECT UPDATE APRIL 2009
EXPLORATION
JAB RESOURCES LIMITED (JAB) exploration target is high tonnage low grade chromite mineralization, previously ignored in Albania, and potentially extractable by open pit at low strip ratios.
During 2008, JAB completed an active exploration program within Exploration Permit 1125, covering 30 sq kms over the prospective Kalimash ultra-mafic geological unit in North Eastern Albania.
JAB drilled a total 58 holes, over two exploration targets, intersected an average of five separate zones of mineralization per hole. The average width of the zones was 5 metres, with individual zones up to 40 metres in thickness. A data base was constructed from the results of both the new drilling and some previous drill holes in the area.
RESOURCES and POTENTIAL
A block model of the chromite mineralized zones was constructed from the data base. Independent geological consultants have classified the mineralization in accordance with the JORC standard, as follows:
The mineralization classified as “Exploration Targets” occurs but needs some closer spaced drilling to be upgraded to a resource.
The total in ground mineralization comprises 1.4 million of contained chromite, compared to the historical estimate for the same area of only 100,000 tonnes. This increase of 14 times, demonstrates the success of JAB’s exploration model.
JAB has advised the Albanian Government of the new discovery at Target 1 and the company’s intension to lodge a mining permit application over the resource.
In addition to the above mineralization there are two more near surface targets yet to drill and there are historical estimates of the underground potential up to 5 million tonnes at 20% Cr2O3, offering good potential for the establishment of a modern efficient mining project.
MINING OPTIONS:
Independent mining consultants have undertaken Whittle Pit Optimization utilizing the Block Model.
The optimum open pit shell details were:
The optimum pit has a low waste rock to ore strip ratio of only 1.32, and the economic assessment is that mining large tonnages at a low grade by open pit, provides a better financial return than mining small high grade deposits, as has been the past mining focus in Albania.
However, the higher grade pods do provide useful additional resources to be mined as the open pit production diminishes, thus extending the life of the project, to in excess of 10 years.
BENEFICIATION PLANT:
An extensive program of metallurgical test work has been completed by independent metallurgical consultants. The test work recommended a simple and low capital cost processing plant flow sheet, comprising crushing, milling and gravity separation, designed to produce a chromite concentrate with a grade of up to 47% Cr2O3.
ENVIRONMENTAL STUDIES:
An environmental study completed by independent environmental consultants suggested that no major environmental issues occur. The processing will not use any harmful chemicals.
FEASIBILITY STUDY:
A feasibility study into the development of the project has been compiled by directors utilizing the results obtained from all the independent consultants.
The study demonstrates that the project is potentially viable and recommends JAB proceed with planning the development of an open pit mine and plant, initially to process around 700,000 tonnes of chromite ore per annum, to produce around 100,000 tonnes of concentrate per annum.
The study recommends expanding the concentrate production over a period of time to around 200,000 tonnes per annum and the introduction of underground mining to supplement the open pit ore production as the operation matures.
The overall production cost is expected to be around $US 200 per tonne of concentrate.
The initial development is estimated to cost around $US 30 million.
PROJECT DEVELOPMENT:
JAB is currently preparing the mining permit applications. Whilst there is no guarantee that the permits will be automatically granted to JAB, the project offers considerable advantage to the Government and people of Albania, in that it will:
Establish the first modern mine in the country. The project will use up to date mining and processing techniques and meeting world standard safety and environment standards.
Produce chromite concentrates from ore previously considered too low a grade to process, thus making far better utilization of the Albanian chromite resources than hitherto contemplated.
Bring long term economic and social benefits to the local community and provide considerable and valued foreign exchange for Albania.
In addition the project will provide the company with a strong cash flow for further development and growth.
ROB MURDOCH
EXECUTIVE CHAIRMAN
KALIMASH PROJECT UPDATE APRIL 2009
EXPLORATION
JAB RESOURCES LIMITED (JAB) exploration target is high tonnage low grade chromite mineralization, previously ignored in Albania, and potentially extractable by open pit at low strip ratios.
During 2008, JAB completed an active exploration program within Exploration Permit 1125, covering 30 sq kms over the prospective Kalimash ultra-mafic geological unit in North Eastern Albania.
JAB drilled a total 58 holes, over two exploration targets, intersected an average of five separate zones of mineralization per hole. The average width of the zones was 5 metres, with individual zones up to 40 metres in thickness. A data base was constructed from the results of both the new drilling and some previous drill holes in the area.
RESOURCES and POTENTIAL
A block model of the chromite mineralized zones was constructed from the data base. Independent geological consultants have classified the mineralization in accordance with the JORC standard, as follows:
The mineralization classified as “Exploration Targets” occurs but needs some closer spaced drilling to be upgraded to a resource.
The total in ground mineralization comprises 1.4 million of contained chromite, compared to the historical estimate for the same area of only 100,000 tonnes. This increase of 14 times, demonstrates the success of JAB’s exploration model.
JAB has advised the Albanian Government of the new discovery at Target 1 and the company’s intension to lodge a mining permit application over the resource.
In addition to the above mineralization there are two more near surface targets yet to drill and there are historical estimates of the underground potential up to 5 million tonnes at 20% Cr2O3, offering good potential for the establishment of a modern efficient mining project.
MINING OPTIONS:
Independent mining consultants have undertaken Whittle Pit Optimization utilizing the Block Model.
The optimum open pit shell details were:
The optimum pit has a low waste rock to ore strip ratio of only 1.32, and the economic assessment is that mining large tonnages at a low grade by open pit, provides a better financial return than mining small high grade deposits, as has been the past mining focus in Albania.
However, the higher grade pods do provide useful additional resources to be mined as the open pit production diminishes, thus extending the life of the project, to in excess of 10 years.
BENEFICIATION PLANT:
An extensive program of metallurgical test work has been completed by independent metallurgical consultants. The test work recommended a simple and low capital cost processing plant flow sheet, comprising crushing, milling and gravity separation, designed to produce a chromite concentrate with a grade of up to 47% Cr2O3.
ENVIRONMENTAL STUDIES:
An environmental study completed by independent environmental consultants suggested that no major environmental issues occur. The processing will not use any harmful chemicals.
FEASIBILITY STUDY:
A feasibility study into the development of the project has been compiled by directors utilizing the results obtained from all the independent consultants.
The study demonstrates that the project is potentially viable and recommends JAB proceed with planning the development of an open pit mine and plant, initially to process around 700,000 tonnes of chromite ore per annum, to produce around 100,000 tonnes of concentrate per annum.
The study recommends expanding the concentrate production over a period of time to around 200,000 tonnes per annum and the introduction of underground mining to supplement the open pit ore production as the operation matures.
The overall production cost is expected to be around $US 200 per tonne of concentrate.
The initial development is estimated to cost around $US 30 million.
PROJECT DEVELOPMENT:
JAB is currently preparing the mining permit applications. Whilst there is no guarantee that the permits will be automatically granted to JAB, the project offers considerable advantage to the Government and people of Albania, in that it will:
Establish the first modern mine in the country. The project will use up to date mining and processing techniques and meeting world standard safety and environment standards.
Produce chromite concentrates from ore previously considered too low a grade to process, thus making far better utilization of the Albanian chromite resources than hitherto contemplated.
Bring long term economic and social benefits to the local community and provide considerable and valued foreign exchange for Albania.
In addition the project will provide the company with a strong cash flow for further development and growth.
ROB MURDOCH
EXECUTIVE CHAIRMAN
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HEAD OFFICE
JAB RESOURCES LTD.
91-93 COMMERCIAL RD
NEWSTEAD 4006 QLD AUSTRALIA
MAIL
JAB RESOURCES LTD.
LOCKED BAG 6
FORTITUDE VALLEY
4006 QLD AUSTRALIA
PHONE
From within Australia:
07 3854 2300
From outside Australia
+ 61 7 3854 2300
FAX
+ 61 7 3854 2399
EMAIL
info@jabresources.com
TIRANA ALBANIA OFFICE
AUTOSTRADE TIRANA-DURRES,
KILOMETRE 2
FUSHE MEZEZ, KASHAR
TIRANA, ALBANIA
PHONE + 355 48202797
KUKES PROJECT OFFICE
VILA DOMI, RRUGA KOSOVA
LAGJ 2
KUKES, ALBANIA
JAB RESOURCES LTD.
91-93 COMMERCIAL RD
NEWSTEAD 4006 QLD AUSTRALIA
JAB RESOURCES LTD.
LOCKED BAG 6
FORTITUDE VALLEY
4006 QLD AUSTRALIA
PHONE
From within Australia:
07 3854 2300
From outside Australia
+ 61 7 3854 2300
FAX
+ 61 7 3854 2399
info@jabresources.com
TIRANA ALBANIA OFFICE
AUTOSTRADE TIRANA-DURRES,
KILOMETRE 2
FUSHE MEZEZ, KASHAR
TIRANA, ALBANIA
PHONE + 355 48202797
KUKES PROJECT OFFICE
VILA DOMI, RRUGA KOSOVA
LAGJ 2
KUKES, ALBANIA
