The Asia Miner

JAN-MAR 2016

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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32 | ASIA Miner | Volume 13 • Issue 1 | 2016 Vietnam ASIAN Mineral Resources (AMR) continues its strong operational performance at the Ban Phuc Nickel-Copper Project in Viet- nam with above guidance production and strong mill recoveries. The company says that strong operational performance contin- ues to underpin the business during the extended low-pricing cycle. During the quarter ending September 30 the operation in the country's north had milled production of 2629 tonnes of nick- el, 1109 tonnes of copper and 75 tonnes of cobalt metal in concentrate. There were 14,050 tonnes of dry concentrate sold. Three product shipments were completed in the quarter, which was below expecta- tion due to unplanned shipping delays to Tianjin port in China. The average realized nickel price for the quarter was US$4.40 per pound. Mill recoveries exceeded targets at 87.7% nickel and 95.3% copper while C1 unit operating costs were below guidance at US$3.49 per pound of nickel, including roy- alties and export taxes. During the quarter AMR achieved full re- payment of the outstanding term loan facil- ity of US$12 million and repayment of the US$2.7 million working capital facility. CEO Evan Spencer said the sustained strong operational performance combined with the company's ongoing stated ob- jective to reduce costs enabled Ban Phuc Nickel Mines (BPNM), AMR's Vietnamese subsidiary, to pay down US$14.7 million in debt during the quarter. "The subsequent temporary delay in BPNM's nickel concentrate shipments to Tianjin port has not impacted the opera- tion. Shipments have re-commenced and we expect to return to our normal shipping schedule over the coming months. "The short-term bridge facility provided by our major shareholder, Pala Investments, has enabled us to work though this delay in shipping in a controlled fashion. "Exploration at our high priority King Snake prospect has provided exciting results. The structural re-interpretation combined with feld mapping, geochemical sampling and surface EM work undertaken during the quarter has identifed the potential for a mineralized system up to 1.2km in length at King Snake. The presence of a number of EM conductors at depth will enable detailed drill targeting to begin. "The confrmation of mineralization at King Snake is a signifcant discovery and provides the opportunity for AMR to access addition- al mineralization from the existing mine infra- structure should economic quantities of min- eralization be confrmed." King Snake is one of AMR's high-priority exploration targets identifed along the 2.8km Ban Khoa trend, which sits about 1km north- east of the existing Ban Phuc operations. PHI Group, a US public company engaged in energy and natural resources, has signed an agreement to partner with HTMI Co Ltd, a Vietnamese company owning a titanium mine and operating a slag factory in Binh Thuan Province. The agreement is likely to result in an increase in annual production capacity to 150,000 tonnes and an upgrade of facilities to produce refned titanium products. PHI will acquire 49% of ownership plus an additional 2% proxy voting right in HTMI and will be responsible for providing the required capital and technology to develop HTMI into a titanium refner in Vietnam. Home to more than 90% of total titanium reserves in Vietnam, equal to approximately 660 million tonnes, HTMI is well positioned to become a major refner of titanium products, including pigments, sponges, ingots and alloys to serve the Vietnamese domestic and international markets. HTMI is currently updating its historical fnancial records to comply with the US Generally Accepted Accounting Principles (GAAP) and completing an audit as required by the US Securities and Exchange Commission for closing of this transaction. HTMI and PHI are mu- tually satisfed with further due diligence results and economic fea- sibility of this program. HTMI's chairman Muon Phan said, "We are pleased to cooper- ate with PHI Group to reposition our company for further growth and expansion and are confdent that by operating a refnery we will not only create substantial additional value for both companies but also spearhead the future development of the titanium industry in Vietnam." PHI Group's chairman and CEO Henry Fahman said, "We highly val- ue our partnership with HTMI and believe together we can move the titanium industry in Vietnam to the next level to bring about signifcant economic benefts for shareholders of both companies and contribute to the general welfare of all the constituents in this region." PHI Group adopts a double-tracked strategy to address the needs of both conventional energy and renewables, and also invests in min- erals and other natural resources. Current activities include wood pel- let projects in North America, reclamation sand for land extensions in Singapore, Brunei and other Asian countries, coal asset development in Indonesia, oleo-chemicals in Malaysia, an LPG terminal project and titanium business in Vietnam, and a nickel project in Laos. PHI to boost HTMI titanium capacity The geology of the area around the Ban Phuc mine which shows the regional targets, including King Snake. Strong performance at Ban Phuc

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