Olympia Resources Purchases Zircon & Gold
Tuesday, September 4th, 2007
The Board of Olympia Resources has announced that it has signed agreements to acquire the land and equipment for a 15,000 tonnes per year (tpy) zircon concentrate processing plant in Sampit in Central Kalimantan. Construction of the processing plant is under way and is to be completed and commissioned in November this year. The cost of the Sampit land and processing plant will be paid for out of existing cash reserves.
-The turn-key purchase of the Sampit zircon concentrate processing plant in Kalimantan will provide Olympia Resources with gross sales revenue of up to AUD$10m p.a. from November.
-At maximum production the Sampit plant will produce a significant cashflow in Kalimantan from Zircon (10,000 tpy), Ilmenite (650tpy), Rutile and Leucoxene (400 tpy), and Gold (1,000 ounces per year).
-The Sampit plant will be followed by construction and operation of the Bati Bati plant, which will take Olympiaâ€™s maximum production capacity in Kalimantan to 35,000 tpy of zircon, 3,500 ounces of gold plus by-product ilmenite, rutile and leucoxene.
-Total gross sales revenue from both plants at maxiumum production will be approximately AUD$35 million per year.
-Olympia is carrying out a major exploration program over the next six months in Central Kalimantan with the aim of defining significant zircon ore deposits to feed the processing plants to replace concentrate purchases off local miners.