1st Dec 2009 10:00
Beacon Hill Resources plc / Ticker: BHR / Index: AIM / Sector: Mining
1 December 2009
Beacon Hill Resources plc ('Beacon Hill' or 'the Company')
Mining Licence Application
Beacon Hill Resources plc, the AIM listed resource company, has submitted an application for a mining lease in regard to the Arthur River project, currently held on retention lease RL 8718, through the Company's wholly owned subsidiary Tasmania Magnesite NL ('Tasmania Magnesite'). The grant of a mining lease is the first step in a process towards enabling the Company to commence mining at its Arthur River magnesite deposit in north-west Tasmania, which has a current JORC compliant measured resource of 13.2 million tonnes of magnesite.
The Arthur River magnesite project was acquired by Beacon Hill in October 2009 as part of the acquisition of Tasmania Magnesite. Since acquiring the resource, the Board has initiated a defined development programme aimed at bringing the project into production as soon as practicable. This development plan utilises the substantial exploration and test work analysis completed on the Arthur River resource by previous owners, and will enable the Company to bring the project towards production rapidly and efficiently. The potential magnesite resource size is considered one of Australia's largest due to numerous drill intersections of thick, massive magnesite over a two kilometre extension zone outside the defined resource boundary. The mining lease, when granted by Mineral Resources Tasmania, will be subject to the completion of studies such as the Development Proposal and Environmental Management Plan (DPEMP), a public consultation process and other approvals, which the Company anticipates to complete by the end of 2010.
Following this process, Beacon Hill intends to commence construction of a mine, currently targeted to begin in early 2011, with production scheduled to begin towards the end of 2011. The Company will continue its exploration plan focussed on both the Arthur River and Lyons River projects, with a view to upgrading the current total 39Mt magnesite resource, adding further value to the Company's resource portfolio.
Beacon Hill Chairman Justin Lewis, said, "This is a key step in the development of this significant magnesite project and I am delighted at how quickly we have managed to reach this milestone, in line with our timetable. The conversion of our retention lease to a mining lease, when granted, will enable the next phase of development at Arthur River, including the design and construction of a mine. We have also remained focussed on the further exploration potential of the project, which represents a globally significant resource and we believe that further exploration work will unlock additional value for our shareholders.
"We have also progressed well with discussions with potential joint venture partners in regard to the construction of a calcination plant, and the grant of a mining lease will represent a key step in this process."
**ENDS**
For further information on the Company, visit: www.bhrplc.com or contact:
|
Justin Lewis |
Chairman, Beacon Hill Resources Plc |
+61 (0) 3 8637 1540 +61 439 162369 |
|
William Vandyk |
Astaire Securities Plc |
+44 (0) 20 7448 4400 |
|
Hugo de Salis |
St Brides Media & Finance Ltd |
+44 (0) 20 7236 1177 |
|
Susie Callear |
St Brides Media & Finance Ltd |
+44 (0) 20 7236 1177 |
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BHR.L