Wetar Project Update

 
TIDMFND 
 
FINDERS RESOURCES LIMITED 
 
 
                         Wetar Project Update & Notice 
 
 
Finders  Resources Ltd  (ASX:AIM FND,  'Finders', 'the  Company') is  pleased to 
provide  this update  for the  Wetar Copper  Project (currently 94% Finders) on 
Wetar Island, Maluku Barat Daya in eastern Indonesia. 
 
The Wetar Copper Project comprises two high grade copper deposits at Kali Kuning 
and Lerokis, together constituting a Proven and Probable Ore Reserve of 8.2 Mt @ 
2.5% Cu  using a  0.5% Cu grade  cut-off.  Currently  a Demonstration  Plant and 
associated  heap leaching facilities are producing some 5 tonnes per day of high 
quality cathode copper. 
 
Finders, in partnership with PT Batutua Kharisma Permai ('BKP'), on the basis of 
a  positive Definitive Feasibility Study (see release dated 12 November 2009) is 
currently  completing detailed engineering and  capital cost estimates for Stage 
1 of    two-stage   'brownfields'  expansion  planned  to  lift  copper  cathode 
production  to  7,000 tonnes  per  year  by  expanding the current Demonstration 
Plant.   Subject to permitting and project financing, Finders expect to commence 
construction  activities  for  Stage  1 by  late  Q3  2010. The  Stage 2 project 
expansion  to  increase  cathode  production  to  23,000  tonnes  per year will 
incorporate  the bulk of the  Whim Creek SX-EW plant  (purchased by Finders from 
Straits Resources) and is expected to follow approximately a year after Stage 1. 
 
Demonstration Plant 
 
The  Demonstration Plant  has now  produced approximately  1970 tonnes of copper 
cathode  and  the  last  six  months  have  seen  production at 96% of nameplate 
totaling   869 tonnes   with   sales  of  800 tonnes  at  an  average  price  of 
approximately  US$7,100  per  tonne  (US$3.22  per  lb.).   With 1,000 tonnes of 
potentially  leachable  copper  remaining  in  the test heaps, copper recoveries 
approaching  70% from Heap 3 and predicted slower leach rates, the demonstration 
stage of the project is entering a new phase with a focus on upgrading equipment 
for   the  Stage  1 expansion  and  further  experimenting  with  the  operating 
parameters including Eh ranges targeting specific copper minerals.  The Stage 1 
expansion  will  incorporate  the  whole  of  the  current  Demonstration Plant, 
expansion of the SX-EW plant and power supply, and new leach pads located within 
the old gold mining area immediately adjacent to the Kali Kuning ore-body. 
 
To this end, the crusher has been refurbished, modifications completed on the SX 
plant  and the neutralisation plant is being  extended with larger tanks and the 
addition  of a filter press.  The effects on leach rates by varying aeration and 
irrigation  rates  are  being  assessed  and  this  work  includes detailed size 
fraction assays and mineralogical studies. 
 
 
 
 New press filter   Heap 3, new reticulation design 
                    Development Planning 
 
Detailed  Stage 1 engineering  design has  been completed  and all  supplier and 
contractor  tenders and inquires have been issued. Responses are due by mid July 
and  this would  allow for  a revised  capital estimate  and schedule of Project 
delivery  to be  completed by  end of  July 2010.  Design  work has commenced on 
components of Stage 2 based on importing and installing the Whim Creek plant now 
disassembled  and packed in containers  at the Whim Creek  site.  The Company is 
aiming  to provide a revised capital estimate  for Stage 2 in the fourth quarter 
2010 based on optimization of earthworks and use of Indonesian contractors. 
 
Mining Permit 
 
As  previously reported,  Finders obtained  its environmental  impact assessment 
approval  (AMDAL)  in  late  March  2010.  Following  this  approval, supporting 
documents  in relation  to the  application for  the Mining  Permit required for 
Stage  1 and Stage 2 have been reviewed by a team from the Mines Department from 
the  Province  of  Maluku  and  the  Kabupaten (or sub-district) of Maluku Barat 
Daya.  A recommendation from the Mines Department for the Bupati to proceed with 
the  issue of a mining permit is expected during July.  The result of the review 
indentified  minor clarifications and requests  for additional information which 
are expected to be completed within the next few weeks. 
 
Other Permits 
 
In advance of the award of the Mining Permit, a suite of follow-on permits which 
allow  for import of equipment and  construction activities to proceed have been 
progressed.   Finders'  Indonesian  operating  company,  PT Batutua Tembaga Raya 
('BTR')  has applied for  a capital expansion  with the Foreign Investment Board 
which  will  allow  use  of  the  "masterlist" facility to import equipment.  In 
addition,  BTR has applied for a Building Permit, which when issued coupled with 
the  existing  environmental  permit  (AMDAL)  allows  for  construction  of the 
expanded  SX-EW  plant  (Stage  1).  The  company  is  currently seeking further 
clarification in regard to its application for a Location Permit, a form of land 
use  permit, following  an inconsistency  identified between  advice and permits 
obtained  from  the  local  government  and  the  Forestry  Department.    As  a 
contingency  measure,  BKP  is  in  the  process  of  lodging applications for a 
forestry  permit, supported  by a  recommendation from  the Governor  of Maluku. 
Deferral  of the permit may affect the  startup of Stage 1. Finders will provide 
an update once further clarity is obtained. 
 
Project Finance 
 
Finders  has received six provisional term sheets from potential sources of debt 
finance in respect to the Stage 1 expansion and scoped to accommodate Stage 2. 
The term sheets are currently being reviewed with a view to selection of a short 
list   earmarked   for  the  negotiation  of  definitive  terms.   A  number  of 
representatives   from   potential  lenders  and  Behre  Dolbear  Australia,  as 
independent  technical consultants, have  completed site visits.  The company is 
also considering other financing alternatives. 
 
Chris Farmer, Managing Director stated: 
 
"On  the technical  side, the  successful operation  of the  Demonstration Plant 
provides  us with significant  confidence for the  planned expansion and we have 
also  benefitted from the proprietary knowledge  gained from almost 17 months of 
sulphide leach operations. 
We  continue to benefit from high levels  of support from key departments of the 
Indonesian Government and the Province of Maluku and share their confidence that 
the Wetar Copper Project will play a key role in regional development." 
 
                     AIM NOTICE: Change of name of advisor 
 
The Board of Finders (LSE: FND) has been advised that, with effect from 30 April 
2010, its Broker has changed its name to finnCap Ltd. 
 
 
 
Further  details  for  all  projects  may  be  found  on  the Finders website at 
www.findersresources.com 
 
 Finders Resources Ltd: 
 
 Russell Fountain   Non-Executive Chairman       [phone] 
 
 Chris Farmer       Managing Director            [e-mail] 
 
 Financial PR: 
 
 Nick Elwes         College Hill (in the UK)     [phone] 
 
 RFC Corporate Finance Ltd - Nomad: 
 
 Rob Adamson        Managing Director            [phone] 
 
 Stuart Laing       Executive Director           [phone] 
 
 FinnCap -  Finders' Broker for the AIM market: 
 
 Matthew Robinson   Corporate Finance Director   [phone] 
 
 Joe Lunn           Analyst                      [phone] 
 
Finders  Resources  Ltd  through  its  subsidiary  PT  Batutua Tembaga Raya and 
partner PT Batutua Kharisma Permai are proud sponsors of Sail Banda 2010 
 
                                                                  sailbanda.com 
 
Competent Person Statements 
The  information in this  report that relates  to exploration potential, mineral 
resource  and  ore  reserve  estimation  is  the  responsibility  of  Dr Russell 
Fountain.   Dr Fountain is a Director of  Finders and a Fellow of the Australian 
Institute  of  Geoscientists.   Dr  Fountain  has  sufficient experience that is 
relevant   to   the  styles  of  mineralisation  and  types  of  deposits  under 
consideration and to the activity that he is undertaking to qualify as Competent 
Person   in  the  2004 Edition  of  the  'Australasian  Code  for  Reporting  of 
Exploration  Results, Mineral Resources  and Ore Reserves'  (JORC Code) and as a 
Qualified  Person as defined in the AIM  Rules.  He consents to the inclusion in 
this  report of the matters based on his  information in the form and context in 
which they appear.  All assaying of drill core samples was undertaken by the ITS 
laboratory  in Jakarta. ITS is one of  the world's largest product and commodity 
testing,  inspection and certification organizations.  The Jakarta laboratory is 
ISO  17025 accredited  and  employs  a  Laboratory Information Management System 
(LIMS) for sample tracking, quality control and reporting. 
 
Disclaimer 
This  announcement may or may  not contain certain "forward?looking statements". 
All  statements,  other  than  statements  of  historical  fact,  which  address 
activities, events or developments that Finders believes, expects or anticipates 
will or may occur in the future, are forward?looking statements. Forward?looking 
statements  are often, but  not always, identified  by the use  of words such as 
"seek",  "anticipate", "believe", "plan", "estimate", "targeting", "expect", and 
"intend"  and statements that an event or result "may", "will", "can", "should", 
"could",  or "might" occur  or be achieved  and other similar expressions. These 
forward?looking  statements,  including  those  with  respect  to permitting and 
development  timetables,  mineral  grades,  metallurgical  recoveries, potential 
production  reflect the current internal projections, expectations or beliefs of 
Finders  based on information currently available to Finders. Statements in this 
document  that are forward-looking and  involve numerous risks and uncertainties 
that  could cause actual results to  differ materially from expected results are 
based  on the Company's current beliefs and assumptions regarding a large number 
of  factors affecting  its business.  Actual results  may differ materially from 
expected  results. There can be no assurance  that (i) the Company has correctly 
measured  or identified all of the factors  affecting its business or the extent 
of  their likely impact, (ii) the publicly available information with respect to 
these  factors on which the Company's analysis is based is complete or accurate, 
(iii) the Company's analysis is correct or (iv) the Company's strategy, which is 
based  in part on this analysis, will be successful. Finders expressly disclaims 
any obligation to update or revise any such forward?looking statements 
 
No Representation, Warranty or Liability 
Whilst  it is provided in  good faith, no representation  or warranty is made by 
Finders  or  any  of  its  advisers,  agents  or  employees  as to the accuracy, 
completeness, currency or reasonableness of the information in this Announcement 
or  provided in connection  with it, including  the accuracy or attainability of 
any Forward Looking Statements set out in this Announcement. 
Finders  does not accept any responsibility to  inform you of any matter arising 
or  coming to  Finders' notice  after the  date of  this Announcement  which may 
affect any matter referred to in this Announcement. 
Any  liability of Finders, its  advisers, agents and employees  to you or to any 
other  person or entity  arising out of  this Announcement including pursuant to 
common  law, the Corporations  Act 2001 and the  Trade Practices Act 1974 or any 
other  applicable  law  is,  to  the  maximum extent permitted by law, expressly 
disclaimed and excluded. 
 
Distribution Restrictions 
The  distribution  of  this  Announcement  may  be  restricted by law in certain 
jurisdictions. Recipients and any other persons who come into possession of this 
Announcement must inform themselves about, and observe any such restrictions. 
 
 
 
[HUG#1429998] 
 
 
 
 
 
    Heap 3, new reticulation design: http://hugin.info/138746/R/1429998/376925.doc 
    New press filter: http://hugin.info/138746/R/1429998/376924.doc 
 
 
 
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. 
The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein. 
All reproduction for further distribution is prohibited. 
 
Source: Finders Resources Limited via Thomson Reuters ONE