The Asia Miner

JUL-SEP 2017

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

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Volume 14 • Issue 3 | 2017 | ASIA Miner | 49 THE signing of a joint venture with the Lao Logistics Group in Vientiane has resulted in Linfox becoming the first foreign logis- tics company to operate in Laos. The JV enables the Australian-based company to provide transport services throughout Laos in partnership with local businesses and people. Linfox International Group's CEO Gabby Costigan said the partnership provided Lin- fox with a foothold in the emerging econo- mies of the Mekong Delta region. "Expansion into the greater Mekong Delta countries of Laos, Myanmar, Vietnam and Cambodia is a key objective of Linfox's business strategy," she said. "We see great potential in this region, not only for Linfox, but for the local communities and econo- mies. "The position of Laos in relation to its South East Asian neighbours offers enormous po- tential as a land-link and location to build further trade connections internationally. "It will also generate real income for local business and promote increased invest- ment in the region through the provision of efficient and cost-effective logistics ser- vices." She said the partnership would also open up new opportunities for Laos to grow rela- tionships with its Association of South East Asian Nations (ASEAN) trade partners. "We believe this joint venture is a positive step towards achieving ASEAN's regional economic integration agenda. "This is a very special achievement and I thank the Laos Government and the Lao Logistics Group for giving Linfox this oppor- tunity. "We look forward to learning more about Laos, its culture and people as we grow this relationship," said Gabby Costigan With more than two-thirds of a growing team located in Asia, the Linfox International Group has forged a presence in key Asian markets over several decades. Today, Lin- fox is one of the largest international supply chain providers in the region. Linfox shares a strong history and rela- tionships with many iconic global and local brands in Asia, whilst adding value to new customers, markets and locations every year. Its presence in the Asian FMCG and re- tail sectors is longstanding. More recently, customers in the healthcare, resources and industrial sectors are adopting Linfox's re- nowned supply chain solutions. MINERAL resources at the silver-lead-zinc joint venture of Metal Tiger and KEMCO in Thailand have been upgraded. A new Competent Persons Report (CPR) from SRK Consulting has seen contained metal increase 25% over the 2013 report due pri- marily to resources being upgraded to the indicated category. The KEMCO JV includes the Song Toh and Boh Yai silver-lead-zinc mines. Metal Tiger is preparing for separate admission of KEMCO, its Thai subsidiary, to the AIM market. The CPR states that the contained metal increase will result in a net 12% increase in modelled revenue and operating income up 9% to US$202.5 million despite silver prices falling to US$20 an ounce from a previously modelled US$30. Boh Yai contains 2.9 million tonnes in the indicated category @ 3.7% lead, 4.5% zinc and 68.4 g/t silver, and 400,000 inferred tonnes @ 3.5% lead, 4.2% zinc and 107.2 g/t silver. Song Toh contains 1.1 million in- dicated tonnes @ 5.1% lead, 0.8% zinc and 60.1 g/t silver, and 200,000 inferred tonnes @ 8.1% lead, 0.2% zinc and 76.4 g/t silver. The mines were put on care and mainte- nance in 2002, having been in continuous operation since 1978. The final CPR is intended to be included in the admission document in relation to KEM- CO's flotation, which is expected to occur by the end of the September quarter. Metal Tiger's CEO Michael McNeilly said, "SRK has determined that the project not only warrants further technical work to com- mence an optimised reopening, but holds the potential for significant resource increas- es and enhancement through exploration and assessment. "The CPR findings provide a firm base on which to further improve the project as we work through mine permitting and develop our knowledge to a prefeasibility study level. "Whilst the project NPV has fallen to US$45.9 million, sensitivity analysis shows this is largely due to the increased provision for up-front capital cost and operating costs based on international dollar terms. "The management can see potential for savings by utilising Thai engineering ca- pability at competitive local rates and will obtain detailed costings. We are further encouraged that sensitivity analysis shows that a modest reduction in operating costs combined with a recovery in metal prices offers strong upsides." Resources upgraded at KEMCO project A silver-lead-zinc ore face at one of the KEMCO projects in Thailand's Kanchanaburi province. Linfox to provide logistics in Laos Linfox has spread its Asian logistics presence through a joint venture in Laos.

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