STIRLING RESOURCES LTD - ASX: SRE

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Description

Stirling Resources Limited is a mining investment company with strategic investments in a range of Australian natural resource projects, including copper (Redbank Copper), gold (Swan Gold Mining) and mineral sands (Matilda Zircon).

Stirling is backed by the DCM DECOmetal group's fiancial resources and strong knowledge of and commitment to the Australian natural resources sector. Stirling's strategy is to identify projects that comprise commodities considered to have stong future demand and with favourable geological characteristics. The focus is on brown fields projects close to development or production.

Driven by the underlying fundamentals of the Chinese economy and their continued substantial urbanization process taking place requiring commodities such as copper, gold and zircon (for the use in ceramics and porcelain) Stirling is well placed to benefit from the resulting strong continuing demand for these resources.

Redbank Copper

Stirling Resources Limited is the major shareholder in Redbank Copper Limited (ASX:RCP).

The Redbank Copper Project is located in the Northern Territory McArthur River Basin, some 30km from the Queensland border and 70km south of the Gulf of Carpentaria. The tenements comprise Exploration Retention License (ERL) 94 which includes Mineral Leases (Northern) MLN 631 to 636 inclusive and Mineral Lease (Northern) MLN 1108 as well as EL24654. Seven exploration licenses have been granted in the McArthur South region. The seven tenements comprise EL26758, EL26778, EL26779, EL26780, EL26781, EL26965, EL26999 which total 2,000km². Redbank holds a substantial ground position (with more than 4,000km² granted or under application) including the centre of the Redbank Mineral Field which hosts significant economic copper mineralisation and is highly prospective for copper, cobalt, phosphate, manganese and uranium.

Redbank Copper is pleased to announce a significant upgrade in Resources at its expanding Northern Territory project. It takes the total Indicated and Inferred JORC Resources to 6.24Mt @ 1.5% Cu for 95,900 tonnes of contained metal. This includes an Indicated Resource of 2.76Mt tonnes at 1.6% Cu, and Inferred Resources of 3.48Mt tonnes at 1.5% Cu.

In September 2009, a comprehensive Mine Study for the development of the Redbank project was released. The Mine Study reinforces the strong economic viability for a copper cathode and concentrate project and includes a base case model for an open cut copper mine with a life of ten years, including production from both oxide and sulphide ores. Copper cathode production is targeted for 2011.

In early 2010, a Development Study was released outlining increased copper production targets, with capacity for copper cathode output lifted from 2,100 tonnes to 2,500 tonnes per year. Redbank has also accelerated the proposed ramp-up of its copper sulphide production stream. The initial rate is 20,000tpa of copper concentrate for the first year (2013) from 300,000tpa of sulphide ore, increasing to 30,000tpa from 500,000tpa sulphide ore.

Redbank has engaged Calder Project Services to design and construct the Solvent Extraction-Electro Winning (SX-EW) plant for cathode production, with construction set to commence on site in the first half of 2011.

Exploration in 2009 has discovered new resources together with four new breccia pipes. A significant exploration and drilling program is planned in 2010 in order to deliver further expansion of its resource base. The total drill program includes 12,500m RC and 2l,500m of diamond drilling to test the depths of mineralisation which currently remains open.

Matilda Zircon

Matilda Zircon is focused on the development of mineral sands projects located on the Tiwi Islands in the Northern Territory, a leucoxene deposit at Keysbrook in the South West of Western Australia and an expanding zircon operation in Indonesia.

Zircon producing and exploration assets form a key part in the Company’s commodity investment strategy. The strategy is to focus on low capital and operating cost projects and which are located within close proximity to the Chinese and Indian markets.

Zircon has a broad range of applications; its hardness makes it useful as an abrasive and with a melting point of over 2500º C zircon products are resistant to corrosion and heat. Approximately 54% of the world’s premium grade zircon is used as the rapidly growing application of ceramic glazes commonly used in kitchen and bathroom ceramics and dinnerware. The Asia Pacific region dominates zircon consumption accounting for 45% of the total in 2005. China is a major consumer with its booming construction industry increasing the demand for this product.

Zircon prices have increased to over US$900 per tonne in 2009 and are predicted to exceed US$1000 per tonne in 2010/11. During the 2008 downturn in commodities zircon and gold were two of the few minerals which actually increased in value.

Swan Gold

Swan Gold Mining is focused on the development of gold assets near Kalgoorlie. Its primary projects are the Mt Ida underground gold operation and the Carnegie gold project which includes a 1.2mtpa processing facility.

Mt Ida Gold Project

The Mt Ida project is a low cost per ounce underground deposit located 200 kilometres northwest of Kalgoorlie-Boulder and 70 kilometres north west of Menzies and includes 530km2 of tenement area. Swan Gold has a 50 man operating camp servicing the mining and an airstrip at the nearby abandoned Bottle Creek mine. Mt Ida is located 120 kilometres north of the Carnegie plant. Gold was first discovered in the late 1890's and the Mt Ida region has since then produced in excess of 265,000oz of gold at an average grade of 16.3g/t. Mt Ida has Resources of 139,000oz at 13.8g/t Au (Indicated 81,000oz, Inferred 58,000oz) and Probable Reserves 64,000oz at 17.4g/t Au.

Mining at Mt Ida is by underground mining methods consisting of small scale rail mounted trucks and hand held development and stoping. Access to the workings is via the refurbished Timoni shaft. The mining assets include underground mining equipment, a refurbished shaft and hoisting system and two production drives largely grade controlled and production drilled - for immediate continuous production at the hoisting capability of 6,500 tonnes per month (78,000 tonnes per year). Swan Gold is aiming to recommence mining operations at the Mt Ida project during second half of 2010.

Carnegie Gold Project

The Carnegie project located approximately 120 kilometres northwest of Kalgoorlie is an open cut mining operation with established mine and processing infrastructure. Historically, the Carnegie gold field, comprising the Riverina, Mulline, Davyhurst, Siberia, Lady Ida and Kunanalling project areas, has produced more than 1.5 million ounces of gold since 1897.

The Carnegie processing plant is an upgraded conventional 1.2 mtpa Carbon In Pulp (“CIP“) gold processing plant, is in good condition and can be easily brought back on line with the re-establishment of power connection and minimal expense. The site includes well established administration and maintenance buildings, extensive spares inventory, an established bore field, licensed tailings storage facility and a 100-person camp. Carnegie has Resources of 1.5m oz at 2.3g/t Au (Measured 21,000oz, Indicated 786,000oz and Inferred 695,000oz) and Probable Reserves 135,874oz at 2.7g/t Au. Swan Gold intends to recommence mining operations at the Carnegie project, with an emphasis on improved mine planning, mine grade control and stronger management control.

Mine For

copper, gold, mineral sands, zircon

Location of operation(s)

Indonesia, Tiwi Island, Northern Territory, Western Australia

Address

150 Hay St
SUBIACO, WA, Australia

Phone

(61 8) 6389 6800

Email

Website

http://www.stirlingresources.com.au

Last Updated

04/02/2011