CAPE ALUMINA LTD Quarter Highlights
Direct Shipping Ore Inferred Resource More than Doubled to 47 million tonnes Pre-Feasibility Results Expected February 2015 Bauxite Market Continues to Show Strong Growth Successful Merger of MetroCoal Limited and Cape Alumina Limited New Company Name and ASX Code Management RestructureQ u a r t e r l y A c t i v i t i e s R e p o r t D e c e m b e r 2 0 1 4 | P a g e 1
Inferred Resource More than Doubled to 47 Mt
The total Direct Shipping Ore (DSO) Inferred Resource at the Bauxite Hills Project has more than doubled to
47 million tonnes.
The DSO Inferred Resource now includes 24.9 Mt (JORC 2012) estimated at the BH1 deposit and
22.1 Mt at the BH6 deposit (see Table
1 below).
Bauxite quality results have confirmed that ore from the Bauxite Hills Project
is of saleable quality and requires no beneficiation prior to export.
The Inferred Resource update also includes bulk density data derived from the recently completed sonic
drilling program.
In addition, a Pre-Feasibility study has commenced for a 2 million tonnes per year mine targeting first production Q3 2016.
The Bauxite Hills Mine and Port Project is 95 km north
of Weipa on Queensland's Cape York Peninsula and
5km south-east of the port at Skardon River (see Figure 1). Western Cape York is world-renowned for its deposits of high-quality, export-grade bauxite.
Recent resource results confirm the positive conclusion of the Bauxite Hills Scoping Study, conducted July 2014, that was based on a Direct
Figure 1
Shipping Ore being transhipped via the Skardon
River for export.
The production of DSO allows the development of a low capital and low operating cost mine by avoiding a number of significant costs associated with production of a beneficiated bauxite product, including reduced infrastructure costs and significantly reduced water, energy and no tailings
dam requirements.
*DSO - "Direct shipping ore" is defined as bauxite that can be exported directly with minimal processing
**THA- trihydrate available alumina (gibbsite alumina + kaolinite alumina - low temperature desilication product
(DSP) alumina) at 1500C
***RXSi- reactive silica at 1500C
Table 1
Q u a r t e r l y A c t i v i t i e s R e p o r t D e c e m b e r 2 0 1 4 | P a g e 2
Pre-Feasibility Results
Metro Mining has commenced the Pre-Feasibility Study (PFS) for the Bauxite Hills Project and it is planned for completion in February 2015.
Work is underway to upgrade the BH6 resource from Inferred to Indicated for inclusion in the PFS.
The Bauxite Hills Project is being planned as a
2 million tonnes per annum mine with low operating costs and low capital requirements. This will be confirmed as part of the outcome from the
Pre-Feasibility results. The Pre-Feasibility study is being undertaken by MEC Mining Consultants, with further input being provided from a number of other contractors and service providers.
The market outlook for bauxite remains positive reflecting strong demand in the sector. Indonesia's ban on exports (introduced in 2014) assisted greatly
in keeping bauxite demand strong. In 2013 Indonesia exported over 40 million tonnes of bauxite to China. In 2015 with Indonesia's export of bauxite now zero, Metro Mining's Bauxite Hills Project is extremely well positioned to take advantage of this gap in the
supply of bauxite to the market.
Source: Alumina Ltd & CM Group with China Customs Data, Jul 14. Prices CIF Shandong, non-ViU adjusted
Metro Mining's new shareholder China Xinfa Group Corporation Limited is China's largest Independent aluminium company with interests in power generation, alumina refining, aluminium smelting and aluminium production.
In addition the Government of India has also reportedly increased the export tax on bauxite from 10% to 20%. India and the Middle East are
also understood to be showing increasing demand for alumina to supply their rising aluminium production and consumption.
Q u a r t e r l y A c t i v i t i e s R e p o r t D e c e m b e r 2 0 1 4 | P a g e 3
Successful Merger
T h e m e r g e r of MetroCoal Limited with Cape
Alumina Limited was successfully completed on
15 December 2014 with China Xinfa Group Corporation Limited (Xinfa) accepting MetroCoal's offer for their 12.1% shareholding in Cape Alumina. Xinfa's acceptance of MetroCoal's offer brought the total acceptances of the offer to over 90%. Upon acquisition of over 90% shareholding MetroCoal proceeded to compulsorily acquire
the remaining shares in Cape Alumina, and successfully complete the merger. Cape Alumina is now a wholly owned subsidiary of Metro Mining.
A merger was considered to be in the best interests of all shareholders as it allowed the newly merged company to focus its resources on the development of the Bauxite Hills Project as well as realise the benefits and savings that came with being a
singular entity.
The Board regarded a merger to be strategically important as well as commercially and economically prudent. A merged company was a considerably more attractive investment vehicle as it created a multi-commodity resource company. Commodity diversification provides the company and its share- holders with greater resilience through commodity cycles, an increase in trading liquidity and en- hanced access to capital markets.
Following the merger of MetroCoal Limited with Cape Alumina Limited the company changed it's name to Metro Mining Limited in December 2014.
The company also adopted a new ticker code, MMI, and now trades under this code on the ASX.
The new name was reflective of the more diversified portfolio as well as retaining a link to its company of
origin.
The focus of the combined group is the development of bauxite projects in Cape York commencing with the Bauxite Hills Project which is targeting first production in 2016.
The newly merged company also has a large number of coal tenements in the Surat Basin in South West Queensland and a smaller tenement holding in the Galilee Basin in Central Queensland.
Further development of these tenements is planned upon an improved coal price and advancement of an infrastructure solution in the Surat Basin.
Metro Mining is also exploring for other commodities within Australia and overseas.
Metro Mining will focus on projects with low entry costs in commodities and minerals with positive price and demand outlooks nationally and internationally.
Q u a r t e r l y A c t i v i t i e s R e p o r t D e c e m b e r 2 0 1 4 | P a g e 4
Management Restructure
As a result of the merger, the Board of the newly merged company (Metro Mining Limited) announced a management restructure in order to effectively meet its stated objectives of advancing the Bauxite Hills Project in Cape York.
Effective 12 January 2015 Mr Simon Finnis joined
Metro Mining Limited as Chief Executive Officer.
In view of Mr Finnis' most recent experience with feasibility, construction and commissioning of new and brown fields operations, he was considered ideal to bring Bauxite Hills on-line in the shortest possible time frame and in the most cost effective manner.
Prior to his appointment Mr Finnis was CEO of Grand Cote Operations in
The Board is extremely pleased Mr O'Brien will continue as Metro Mining Project Director as his expertise will be invaluable in advancing the Bauxite Hills Project.
Mr Scott Waddell has stepped down as CEO (acting) of Cape Alumina and become Metro
Mining Chief Financial Officer & Company Secretary.
In addition and also effective as at 12 January 2015, Mr Jijun Liu joined the Board of Metro Mining Ltd.
Mr Liu is Managing Director of China Xinfa Group Corporation Limited. China Xinfa Group controls one of China's largest alumina- aluminium enterprises.
China Xinfa Group Corp Ltd also hold 7.8% of the issued shares of Metro Mining Limited. Metro Mining
has commenced preliminary discussions with the
Simon Finnis CEO
Mike O'Brien Project Director
Scott Waddell | CFO and
Company Secretary
Senegal. Mr Finnis has a 28 year career in the mining industry working all over Australia, in both open-cut and underground mining operations. Mr Finnis' previous roles have included Operations Manager for the Pooncarie Mineral Sands Project, redevelopment of the Gold Ridge Mine in Solomon Islands and Managing Director of Global
Resources Corp Ltd.
Mr Finnis' corporate experience is an additional benefit and his extensive international and national corporate experience adds significant value.
Current MetroCoal CEO, Mr Mike O'Brien, will become Metro Mining
Limited Project Director.
Xinfa Group regarding their future interest in an offtake agreement for the Bauxite Hills Project.
Given Mr Liu's expansive experience in bauxite the Board is extremely pleased to have him join the Metro Mining Board.
Q u a r t e r l y A c t i v i t i e s R e p o r t D e c e m b e r 2 0 1 4 | P a g e 5
Management Restructure
As a result of the merger, the Board of the newly merged company (Metro Mining Limited) announced a management restructure in order to effectively meet its stated objectives of advancing the Bauxite Hills Project in Cape York.
Effective 12 January 2015 Mr Simon Finnis joined
Metro Mining Limited as Chief Executive Officer.
In view of Mr Finnis' most recent experience with feasibility, construction and commissioning of new and brown fields operations, he was considered ideal to bring Bauxite Hills on-line in the shortest possible time- frame and in the most cost effective manner.
Prior to his appointment Mr Finnis was CEO of Grand Cote Operations in
The Board is extremely pleased Mr O'Brien will continue as Metro Mining Project Director as his expertise will be invaluable in advancing the Bauxite Hills Project.
Mr Scott Waddell has stepped down as CEO (acting) of Cape Alumina and become Metro
Mining Chief Financial Officer & Company Secretary.
In addition and also effective as at 12 January 2015, Mr Jijun Liu joined the Board of Metro Mining Ltd.
Mr Liu is Managing Director of China Xinfa Group Corporation Limited. China Xinfa Group controls one of China's largest alumina-aluminium enterprises.
China Xinfa Group Corp Ltd also hold 7.8% of the issued shares of Metro Mining Limited. Metro Mining
has commenced preliminary discussions with the
Simon Finnis CEO
Mike O'Brien Project Director
Scott Waddell | CFO and
Company Secretary
Senegal. Mr Finnis has a 28 year career in the mining industry working all over Australia, in both open-cut and underground mining operations. Mr Finnis' previous roles have included Operations Manager for the Pooncarie Mineral Sands Project, redevelopment of the
Gold Ridge Mine in Solomon Islands and Managing Director of Global Resources Corp Ltd.
Mr Finnis' corporate experience is an additional benefit and his extensive international and national corporate experience adds significant value.
Current MetroCoal CEO, Mr Mike O'Brien, will become Metro Mining
Limited Project Director.
Xinfa Group regarding their future interest in an offtake agreement for the Bauxite Hills Project.
Given Mr Liu's expansive experience in bauxite the Board is extremely pleased to have him join the Metro Mining Board.
Q u a r t e r l y A c t i v i t i e s R e p o r t D e c e m b e r 2 0 1 4 | P a g e 5
M e t r o M i n i n g L i m i t e d | D e c 2 0 1 4
Quarterly Report
Corporate Details
ASX CODE: MMI
ISSUED CAPITAL (31 December 2014)
288,698,682 shares issued
2,000,000 Unlisted employee & Directors' Options
2,260 Shareholders
Top 20 Shareholders hold 68% of listed shares
LARGEST SHAREHOLDERS
DADI Engineering Development (Group) |16.4% Balanced Property Trust |14.4%
China Xinfa Group Corporation Limited | 7.8% Mr. Gregory Willims |6.5%
Bondline Limited |5.7%
CASH BALANCE
As at 31 December 2014 approx. $5.5 Million
DIRECTORS & MANAGEMENT (As at 12 January 2015) Mr Stephen Everett | Chairman
Mr Wang Donping | Alt NED Mr Xiaoming Yuan
Mr Jijun Liu | Alt NED Mr Ken Xiao
Mr Lindsay Ward | Non-Executive Director (NED) Mr Philip Hennessy | Non-Executive Director (NED)
Mr Simon Finnis | Chief Executive Officer
Mr Scott Waddell | CFO & Company Secretary
Mr Mike O'Brien | Project Director
REGISTERED OFFICE AND HEAD OFFICE
Level 8, 300 Adelaide Street, Brisbane Q 4000
PO Box 10955, Adelaide Street, Brisbane Q 4000
Phone: +61 (0) 3009 8000 Fax: +61 (0) 7 3221 4811
Email: info@metromining.com.au
Website: www.metromining.com.au
COMPETENT PERSON'S STATEMENT
Technical information about exploration results and ore resources on any Metro Mining project in this document has been compiled by Neil McLean, who is a consultant for Metro Mining Limited, a Fellow of the Australian Institute of Mining and Metallurgy (F. AusIMM) and is a competent person and has rele- vant experience to the mineralisation being reported on to qualify as a Competent Person as defined by the 2012 edition of the Australasian Code for Reporting of Minerals Resources and Reserves. Neil McLean consents to the inclusion in the document of the matters based on the information in the
form and context in which it appears. The resource information in this document has been released to the ASX.
Q u a r t e r l y A c t i v i t i e s R e p o r t D e c e m b e r 2 0 1 4 | P a g e 6
|
distributed by
|
