5th Jan 2010 10:00
Beacon Hill Resources plc / Ticker: BHR / Index: AIM / Sector: Mining
5 January 2010
Beacon Hill Resources plc ('Beacon Hill' or 'the Group')
Trading Update
Beacon Hill Resources Plc, the AIM listed resource company, is pleased to provide a trading update detailing the rapid progress made by the Group since its re-admission to AIM on 15 October 2009, following the acquisition of Tasmania Magnesite NL ('Tasmania Magnesite').
Overview:
Acquisition of Tasmania Magnesite NL and re-admission to AIM, together with fundraisings totalling £1.75 million;
First key steps in development of the Arthur's River magnesite project in NW Tasmania underway, including the submission of an application for a Mining Lease;
Discussions with potential joint venture partners with regard to the construction of a calcination plant; and
Evaluation of other potential resources projects which meet the investment criteria of the Group.
Beacon Hill Executive Chairman Justin Lewis said, "We are very pleased with the progress we have made since the acquisition of Tasmania Magnesite, in particular with the commencement and progress of gaining the necessary approvals to develop the Arthur's River Project. The board continues to review other opportunities that fulfil our long term strategy in order to assemble a solid portfolio of projects with near-term production potential in commodities associated with the steel industry, creating additional value for our shareholders."
Tasmania Magnesite
A key part of the acquisition of Tasmania Magnesite was the significant data acquired on the Arthur's River Project, which has enabled the Group to make rapid initial progress, including the submission of a mining lease application within two months of acquiring the Project.
Since October, the Group has made the following progress:
appointed a development team led by Alan Daley and established operations in Tasmania;
undertaken a review of the data acquired with Tasmania Magnesite;
submitted a Mining Lease Application to the State Government of Tasmania;
appointed Pitt & Sherry to act as consultants to produce the Development Proposal and Environmental Management Plan ('DPEMP');
appointed Coffey Mining Pty Ltd to consult in relation to hydrology and the development of a mine plan;
commenced a consultation process with interested parties with regard to the construction of a calcination plant.
The Group has today received notice from Mineral Resources Tasmania that the initial notice period in respect of its application has concluded and they have received only one submission. The next stage is for the submission to be reviewed by the Mining Tribunal. The Tribunal will only hold a formal hearing if they assess the submission to be valid, otherwise, if the submission is ruled invalid, the application will proceed to the Minister for Mines for approval. This is part of the normal Mining Lease application process which the Group expects to be processed expeditiously by the Tribunal.
The Group also notes the announcement by the Federal Government that it has granted an emergency heritage listing for the Tarkine area to provide additional scrutiny of a tourist road development by the State Government of Tasmania through the area. Whilst the Group's current retention leases fall within the area listed, it has received assurances that this does not affect the application process for a Mining Lease.
The Group continues to work to a timetable that will see production at the Arthur's River Project commencing by the end of 2011. We anticipate being granted a Mining Lease early in 2010 and completing the environmental work required by the end of 2010.
Corporate
Since the Group's re-admission to AIM, it has raised a total of £1.75 million through the issue of new equity, which provides the Group with sufficient working capital to complete the initial development of the Arthur's River Project.
In line with the Group's strategy of building a portfolio of projects, it continues to review other potential opportunities. The Group is looking at projects with the following characteristics:
based on commodities used in the steel industry,
near term production (within 2 years); and
potential to put in place off-take arrangements with end users.
The Group intends to announce its annual results for the 12 months ended 31 December 2009 towards the end of March 2009, however the Group will keep shareholders abreast of all updates regarding the Arthur's River Project and additional developments as appropriate.
**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 |
Related Shares:
BHR.L