Tuesday, January 20, 2009

Cape Lambert Still Looking For Opportunities

Despite tough economic conditions, ASX- and Aim-listed mining development company, Cape Lambert Iron Ore, is still looking for investment opportunities.

The company said in a report detailing the progress it had made in the quarter ended December 31, that it was continuing to evaluate investment opportunities in early definition iron-ore and related steelmaking assets.

It noted that the current economic conditions had provided it with an "extensive" number of potential investment opportunities.

Cape Lambert intended to use its cash reserves of about A$223-million to invest in a number of assets, which it said would add value to those assets by positioning them for development or sale.

The company already held an interest in two early definition projects, one in Western Australia, the other in Sierra Leone.

An initial drilling programme at its 100%-owned Cape Lambert South project, in Western Australia, had been completed during the quarter.

In excess of 400 samples had been sent for testing to determine the presence and extent of magnetite iron mineralisation. The results would be available by the end of this month.

Follow-up drilling would also start at the end of March, the company stated.

Meanwhile, the planning and the definition of an initial work programme at the Marampa iron-ore project, in Sierra Leone, had been completed during the quarter.

Cape Lambert, which owned 30% of the project, said that it had also recruited a number of expatriate project management employees for the project.

The initial work programme would include regional mapping, geophysics, drilling and metallurgical test work on the tailings, and drill testing of known geophysical anomalies, stated the company.

The company was developing the Marampa project with LSE-listed exploration company African Minerals.

Meanwhile, Cape Lambert said that it had already received about A$320-million out of the A$400-million purchase price for the sale of its namesake project, which it sold to the China Metallurgical Corporation (MCC).

It was working with MCC to assist the Chinese group to obtain a mining lease, as well as with related construction approvals, after which MCC would make the final cash payment of A$80-million.

Source: Mining Weekly

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