STIRLING RESOURCES LTD - ASX: SRE

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Description

Stirling Resources Limited is a West Australian resources developer focusing on investment and development of copper, gold and zircon projects. The Company consists of highly experienced resource development and mining executives with track records of creating shareholder value.

Previously the group took control of a financially distressed manganese producer and developed it into a diverse mineral commodity producer to become included in the ASX 200 and was ultimately taken over by an international conglomerate for $1.25b. The Company grew from being a small unreliable manganese producer to ultimately supplying 10% of the world's high grade manganese to global customers and developed significant projects in chromite, nickel, copper, zinc and iron ore.

Redbank Copper

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

Redbank Copper is an Australian based ASX-listed resource company focused on the development of the Redbank Copper Project in the north-eastern part of the Northern Territory. Redbank holds a substantial ground position (with more than 3,700km2 under lease or 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.

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 (Glencore JV). Recently seven exploration licenses have been granted in the McArthur South region. The seven tenements comprise EL26758, EL26778, EL26779, EL26780, EL26781, EL26965 and EL26999 which total 2,000km2. The Company is continuing the expansion of its Northern Territory tenement package, with applications for a further 930km2 of highly prospective ground adjoining its copper project. The tenement package includes numerous advanced copper targets.

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 95,500 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 early September 2009, a comprehensive Mine Study for the development of the Redbank project was released. The Mine Study confirmed 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.

Initial oxide ore processing is proposed to commence in 2010 at a throughput of 150,000 tonnes per annum. Sulphide production is proposed to commence in 2012 from the refurbished onsite concentrator, at an initial rate of 300,000 tonnes per annum and increasing to 500,000 tonnes per annum.

Implementation of the development plans are already underway. Redbank announced the commissioning of the design and construction of an SX-EW plant for copper cathode production. The agreement with Calder Project Services will deliver a low risk, simple, fit-for-purpose plant with a capacity to produce a minimum of 2,100 tonnes of LME grade copper cathode per annum. Calders are scheduled to mobilise on site at the Redbank Mineral Field in second quarter 2010 with construction aimed to be completed during third quarter 2010.

Matilda Zircon

Matilda Zircon Limited (Matilda) is an Australian ASX listed company (ASX:MZI) developing minerals sands projects. In particular Matilda seeks mineral sands projects with high levels of zircon.

Zircon producing and exploration assets form a key part in the Company’s commodity investment strategy. This strategy targets the acquisition of high grade minerals with low capital and production costs 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.

Matilda Zircon has a package of high grade mineral sand assets that includes an operation located on the Tiwi Islands in the Northern Territory which is scheduled to commence zircon production in the first half of 2010. Matilda also has a near term leucoxene project at Keysbrook in the south west of WA which is due to commence operation in the second half of 2010.

In Kalimantan Matilda has access to tenements with known occurences of zircon mineralisation which it intends to start operation in the first half of 2010. In Queensland Matilda has an exploration program underway on the large Cape York project, in one of the world's largest unexplored mineral sands provinces.

Mine For

copper, nickel, iron ore, gold, zircon, manganese, chromite

Address

150 Hay St
SUBIACO, WA, Australia

Phone

(61 8) 6389 6800

Email

Website

http://www.stirlingresources.com.au

Last Updated

01/03/2010