Tungsten APT USD 19,000 / tonne (27
July 2016)
King Island Scheelite Limited (KIS)
through its 100% Dolphin Project on King Island, Tasmania is one of the world's richest tungsten deposits and could
meet a significant proportion of the world's tungsten requirements over a minimum 13 years.
King Island Scheelite Limited ABN 40 004 681 734
Level 26, 259 George Street Sydney NSW 2000
GPO Box 5154
Sydney NSW 2001 P. +61 2 8622 1400 F. +61 2 8622 1401
www.kingislandscheelite.com.au
Chairman
Director Director
Board of Directors
Johann Jacobs Allan Davies Chris Ellis
ASX: KIS
Market Capitalisation $9.1 million Shares on Issue 165.3 million
52 Week High 12.5 cents
52 Week Low 5.1 cents
Share Price 5.5 cents
Report for the Quarter Ended 30 June 2016
HIGHLIGHTS
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King Island Council advised that amendments as envisaged in new operating plan does not require a new planning permit
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Studies are currently underway to satisfy EPA requirements for the Environmental Effects Report
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Work continued on the Definitive Feasibility Study in preparation for development of the mine
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Pumping of water out of the open cut void continues so as to maintain a consistent level in the sump
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Tungsten markets remain depressed with a slight upturn during the Quarter - however this trend was again reversed into July
29 July 2016
King Island Scheelite Limited (Company) is pleased to present its activity report for the quarter ended 30 June 2016.
Environmental Approvals
After detailed discussions with King Island Council , they advised that "it is Council's opinion the amendments discussed, and demonstrated in your plans(KIS), are adequately covered by the conditions contained in the existing planning permit (DA 26/0506) and the proposal does not generate any requirements for a new planning permit."
Additional studies are currently being undertaken to ensure that the Environmental Effects Report to be submitted to EPA incorporates the most up to date data. It is anticipated that this report will be submitted during the current quarter ended September 2016 with approvals being granted prior to 31 December 2106.
Definitive Feasibility Study ("DFS")
Work continued on the consolidation of recent studies into a Definitive Feasibility Study. This work can only be completed when the final environmental approvals have been obtained.
Pit Pumping
Consistent with our previous plans, the inflow of water from predominantly rain water runoff, is being managed with the installed smaller pump utilized on a regular basis to maintain a consistent water level in the sump. After a relatively dry second calendar quarter, heavy rains were experienced in July, however the pumping coped adequately to keep water levels in check.
APT Market
APT (Ammonium ParaTungstate) is the product used as a benchmark price for the sale of WO3concentrate, as it is regularly quoted in industry journals. After reaching nine-year lows late in 2015 and remaining depressed through the first quarter of 2016, the price of APT has improved slightly in the June quarter. The average price for the March quarter was US$17,100 per tonne (A$23,600 per tonne) with the average for the June quarter US$20,300 per tonne (A$27,300 per tonne).
This trend unfortunately reversed during July with current APT prices trading at US$19,000 per tonne (A$25,800 per tonne).
Although this price is above our anticipated production costs, financing the project - both debt and equity - would be extremely difficult and risky. The major impact on the market has been from the drop in specialty steel demand.
Finance
Cash Balance
As at 30 June 2016 the Company's cash balance was $1.3 million.
KIS group activities have related to exploration, there have been no activities relating to production or development.
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Tenement reference
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Nature of interest
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Mining tenements held at the end of the quarter
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Exploration Licence EL 19/2001 at Grassy, King Island, TAS (91 sq kms)
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100% ownership
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Mining Lease Application MLA 1M/2006 at Grassy, King Island, TAS (544 hectares)
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100% ownership
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Mining tenements acquired during the quarter
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Nil
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Nil
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Mining tenements relinquished during the quarter
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Nil
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Nil
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Beneficial percentage interests held in farm-in or farm-out agreements at the end of the quarter
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Nil
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Nil
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Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed during the quarter
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Nil
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Nil
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Following is a summary of the expenditure incurred on exploration activities during the quarter:
$'000
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Dewatering
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22
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Project management
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18
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Metallurgical & laboratory testing
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3
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Environmental
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11
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Other Feasibility Study work
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5
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59
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Johann Jacobs
Chairman
29 July 2016
King Island Scheelite Limited
Level 26, 259 George Street Sydney NSW 2000
Phone (02) 8622 1400
Fax (02) 8622 1401
Email [email protected]
For further information go to the company's website www.kingislandscheelite.com.au