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21 Jul 2011 17:44
Weatherly International plc
Tschudi Feasibility Update
Weatherly ("Weatherly" or the "Company") wishes to inform the market that completion of a Bankable Feasibility Study ("BFS") in respect of the Tschudi project is likely to be delayed until mid 2012.
Following discussions with potential financing partners and consultants to the project, the Company has decided to expand the study and commission additional column leach testwork in order to ensure that the study meets the rigorous technical and financial requirements of a BFS. Accordingly, the Company has commissioned 12 additional metallurgical drill holes which will provide the necessary samples for this expanded study. The new column work will form the basis of the detailed design of the leach pads and, more importantly, verify the acid consumption which is the key component of the operating costs.
On the basis of past experience, the new columns could take up to 180 days to complete. After taking into account the time to set up and dismantle the columns and assess the information, it is unlikely that the BFS will be completed by mid 2012.
The Company intends, however, to complete and report on the results of the feasibility study in relation to the capital costs associated with the plant and the open pit mine by the end of this year. However, reports at that stage will only be able to give qualified estimates of operating costs until the additional work for the BFS is completed and assessed.
It is the Company's objective to be in a position to announce the full details of the BFS, together with a financing package and indicative construction programme, by mid 2012.
Rod Webster (Weatherly CEO) said,
"In order to maintain shareholder value we are looking to utilise debt and project finance to fund this development and reduce potential dilution to shareholders. It is therefore important that we deliver a feasibility study that meets all the requirements of our potential financing partners rather than have to revisit it at a subsequent financing stage."
For further information, please contact:
Rod Webster, Chief Executive Officer, Weatherly International Plc
+44 (0) 20 7917 2989
Samantha Harrison / Jen Boorer, Ambrian Partners Limited
+44 (0) 20 7634 4700
Carina Corbett, 4C Communications (Investor Relations)
+44 (0) 20 3170 7973
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