Company spends big on local prospects
Thursday, 14th July, 2011
A nickel project north of Broken Hill will be a major focus for Carpentaria Exploration Limited which plans to spend $3.5 million on exploration this year.
The company was recently granted six exploration licences at its Koonenberry Nickel Project, about 160km north of Broken Hill, covering about 1800 square kilometres.
In a statement to the Australian Stock Exchange, Carpentaria said it would test drill as a soon as possible three prospects identified from earlier exploration in the area.
Further exploration would also be carried out at the nearby Yanco Glen and Apollyon tin-tungsten projects and, further north, at the McDougalls/Torrowangee Iron Project.
The company said yesterday the $3.5m budget excluded pre-development expenditure at its flagship Hawsons Iron Project west of Broken Hill, where detailed metallurgical and mining studies continue.
Results of a pre-feasibility study into Hawsons in May identified a potential large-scale iron ore project with a base case net present value estimated at $2.8 billion.
“However we are determined to be more than a one project company and will maintain a strong and diversified project pipeline in eastern Australia,” executive chairman Nick Sheard said.
Mr Sheard said the $3.5m exploration budget showed the company’s confidence in the outlook for the new financial year.
His comments came after Prime Minister Julia Gillard this week presented details of the government’s new carbon tax, which will see 500 Australian companies pay $23 for every tonne of carbon they emit.
Mr Sheard said the company’s announcement showed its “commitment to the numerous quality projects in the exploration portfolio, including nickel, tin, tungsten, gold, copper and iron ore.”