FOR IMMEDIATE RELEASE:
December 10, 2007
FEASIBILITY STUDY PROGRESS
AT WOODLAWN, NSW
Tri Origin Exploration Ltd.
(TOE-TSX-V) is pleased to announce a progress update for the Woodlawn Zinc-Copper
Projects, located 200 km southwest of Sydney, NSW, prepared by Bruce Robertson,
Managing Director of Tri Origin’s 51% - owned Australian subsidiary, Tri
Origin Minerals Ltd. (“TRO”) which is listed on the Australian
Securities Exchange.
Tri Origin is pleased with the progress
made by TRO toward the completion of the Woodlawn Zinc-Copper Projects Bankable
Feasibility Study (“BFS”). As previously stated, the BFS is
scheduled for completion during the 1st quarter of 2008. As
outlined in the following TRO update, work is progressing well and Tri
Origin’s management looks forward to a promising outcome from the BFS.
SHAREHOLDER
UPDATE - FROM THE MANAGING DIRECTOR OF TRO
As we approach the end of 2007 the Company is
on track for completing a bankable feasibility study (BFS) for the Woodlawn
Zinc-Copper Projects (WZP). Albeit we are a relatively newly publicly listed company
having completed our IPO in January 2004, we will shortly make our first
project development decision at the completion of the BFS.
Importantly, we see the current market
capitalisation of the Company as a great starting point to build a substantial
business for shareholders such that the business becomes more than the WZP
through a series of strategic alliances and networks formed over time. In the
July Shareholder Update we outlined a five-year pathway to build the market
capitalisation of the Company, with stage one being the delivery of a BFS for
the key WZP.
Through the progress made over the last
number of months we will deliver the BFS in the first quarter of 2008.
The study is targeting a project
development scenario which will provide maximum value to shareholders. This may
ultimately entail an integrated project – being a retreatment operation
(the Woodlawn Retreatment Project, WRP) and an underground mine and plant
(Woodlawn Underground Project, WUP). These two operations could have a combined
mill throughput rate close to 2 million tonnes per annum. Of this, the WRP is expected
to contribute about 1.5 million tonnes per annum and the WUP around 400,000
tonnes per annum.
The scale of an integrated operation of
this size would potentially produce an aggregate of greater than 140,000 tonnes
of zinc, copper and lead concentrate a year, with a targeted initial mine life
of eight years. The optimum approach to integrating the WUP and WRP will be
defined in the BFS.
Tri Origin is planning to apply
significantly different mining methods to the underground project than used in
the past. During January mine design and scheduling activities for the
underground project are scheduled to be completed. We have also finished a
regional geological rock model for the underground project as part of this
planning exercise, which is considered to provide significant further insight
into the prospectivity of the geological sequences down plunge and adjacent to
the currently defined WUP resources.
As well, an improved metallurgical approach
with near final locked cycle test work in progress has been successful in
producing concentrates from the WRP and applying these technology changes to
the WUP will likely allow us to extract a greater proportion of the base metal
minerals by way of concentrate from the higher grade underground resources than
was achieved in the past. Although over 13 million tonnes of open pit and
underground ore have been processed at Woodlawn in the past and provide a
substantial benchmark, as part of the refinement process and in consideration
of a potential increased metallurgical performance through the development of
new technologies since mine closure, locked cycle test work for the WUP will
commence early in the new year.
Geotechnical drilling has been completed
for the two process plant sites, surface infrastructure and the underground
portal design requirements, with confirmatory deep drilling underway.
In addition, the statutory approvals
process has commenced, and we remain on track to secure approval in mid 2008.
Under the State development planning guidelines the WZP has been designated a
“major project” by the Government of New South Wales.
Unlike most new projects the company also
has the benefit of being able to consider various risk management strategies
through the integration of the two projects at Woodlawn. The operating cost
structure of the integrated projects are expected to provide certain economies
of scale gained from increased milling rates, with the option of blending
concentrates from the WRP with those from the WUP. As a
“brownfields” rather than “greenfields” project
substantial capital cost benefits are expected from the existing infrastructure
and services at Woodlawn.
We continue to pursue value-adding
strategic partnerships and alliances, including offtake agreements for our
products.
The company’s growth will also
benefit the local community with up to 250 jobs expected to be created,
generating economic spin-offs in the area for over a decade. A human resources
strategy is being devised as part of the project evaluation and implementation
process to ensure best use of this key resource.
Priorities for the next few months include advancing
the BFS to a stage whereby the community consultation process can be advanced;
drilling of the north tailings dam so that resources may be estimated and included
in forthcoming production schedules; completing geotechnical work for the new
mine decline and metallurgical drilling to confirm design criteria for the WUP;
and continuing infrastructure and services studies, along with regional
exploration drilling.
With the right people in place, a
favourable long term metals outlook and a promising project in a great
location, Tri Origin is well placed for another productive year in 2008 as we
move up the value curve and towards production targeted for the third quarter
of 2009.
On behalf of the board and management, I
would like to extend our best wishes to all our shareholders for Christmas and
New Year and look forward to your continued support in the year ahead.
Yours sincerely
Bruce Robertson
Managing Director
This release was prepared by Tri Origin
Exploration Ltd. from information supplied by its subsidiary Tri Origin
Minerals Ltd (TRO). TRO’s news release can be publicly accessed at www.asx.com.au under Listed Company Documents
filed by TRO. TRO’s reporting of mineral resources, exploration results
and qualifications of competent persons are in accordance with the 2004 Edition
of the Australasian Code for Reporting of Exploration Results and the JORC Code
of December 17, 2004. Although these codes may differ in some regards to
Canadian Standards including NI 43-101, it is the opinion of TOE management
that statements made in the TRO report are, in all material regards, compliant
with NI 43-101standards.
For further information please contact:
Tri
Origin Exploration Ltd.
Dr. Robert Valliant, President
Tel: (905) 294-9942
Web page: www.triorigin.com
E-mail: invest@triorigin.com
Tri Origin Exploration Ltd. is
publicly listed on the TSX Venture Exchange under the trading symbol TOE. Tri
Origin has leveraged exposure to mineral discoveries in Australia through its 51% equity
interest in its subsidiary, Tri Origin Minerals Ltd., a publicly traded company
listed on the Australian Stock Exchange under the symbol TRO.