food for thoguht - takeover brewing?, page-11

Hey everyone. Dont know if anyone saw this but here is a link that will pretty much squash any rumours or kzl merging and more interest in making themselves a big player one day.

Found on yahoo finance.. pretty exciting..... yay

Chinese may JV in Kagara's Admiral Bay



On Thursday 28 April 2011, 17:35 EST

Kagara Ltd says a joint venture partner for its Admiral Bay base metals mining project in Western Australia is likely to be Chinese.

Chairman Kim Robinson says the miner is keeping its partnership options open for the Admiral Bay lead, zinc and silver project in WA's Kimberley region, which it bought from Rio Tinto for $2.5 million and has the potential to yield several billion dollars in revenue.

China's Guangdong Foreign Trade Group, which holds a 18.9 per cent stake in Kagara, could be selected as the joint venture partner but the miner was keeping an open mind and had engaged a bank to canvass the project to the broader market, Mr Robinson said.

Kagara would retain operatorship of the project and make a decision on the partner by September, he told AAP on Thursday.

Mr Robinson said a 72 million tonne zinc and lead resource in the inferred category of Australia's mineral reporting code had been defined from only 2.1km of an 18km strike length at Admiral Bay.

"It's also got an awful lot of silver in it," he told the West Australian Mining Club in Perth on Thursday.

"It's an absolute beauty - a tier one, world class deposit.

"The potential is quite enormous.

"One of those deposits will be around for 50 to 100 years and we're looking for partners."

The partner would fund a $200 million bankable feasibility study that would convert the resource to the higher reserves status, Mr Robinson said.

The feasibility study cost was substantial as a shaft would be sunk in 2012.

About a further $800 million would be spent on the development before full production begins in 2018/19, Mr Robinson said.