Mining, page-79

Hey did anyone see this article in the west news paper march ? Here's a copy in case anyone missed it. Interesting that Orionstone and Blue Capitol are owned by the same person. Anyone seen and details on the new pit design and significant savings figures. Would have thought this would be worth sharing with us investors that have stuck around. Come on sarge how about sharing this important bit of info.

Orionstone founder Ashley Fraser has stepped in to provide the $7.5 million needed to bring Empire Resources Penny’s Find gold mine joint venture into production.

Mr Ashley’s private company Blue Capital Services has agreed to fund mining and related costs up to $7.5 million until the operations are cashflow positive.

Orionstone will also provide equipment and services for open pit mining operations at Penny’s Find, 50km north-east of Kalgoorlie. Mr Fraser established Orionstone (then Ironstone) in Mackay in Queensland in 2003 with one bulldozer and a $20,000 credit card. It has since grown into a national, multi-million dollar company. The company has since agreed to merge with the listed Emeco Holdings and Andy’s Earthmoving in a three way tie-up.

Full scale mining operations are expected to get underway next month.

Empire managing director David Sargeant said the agreement with Blue Cap ensured the Penny’s Find gold project had adequate working capital for initial mining of the open pit.

“All agreements for mining, haulage and treatment of Penny’s Find gold ore are now satisfactorily in place, allowing the project to make the immediate transition to mining,” he said.

“A recently re-designed pit and new mining schedule will also allow Empire to mine at a faster rate than previously anticipated, with considerable cost savings.”

The $7.5 million is repayable within seven months of operation commencement with up to an extra $2.3 million payable in costs, depending on draw down, from free cashflow.

The deal with Orionstone supercedes a previous agreement Empire had with NRW Holdings to begin siteworks at Penny’s Find, deferring costs to the aspiring miner for four months while the open pit was dug and the mine is brought into production.

However Empire would honour other contracts, including an agreement recently struck with Kalgoorlie’s Hampton Transport Services for ore haulage and another with Golden Mile Milling for processing Penny’s Find ore at the Lakewood mill near Kalgoorlie.

Penny’s Find, in which Empire has a 60 per stake, hosts a reserve of about 146,000 tonnes grading 4.62 grams per tonne gold for 21,700 contained ounces, 80 metres from surface.

Empire eventually hopes to take the mine underground as Penny’s Find’s gold mineralisation extends to at least 250m depth, where it remains open with a current known deeper resource inventory of 170,000 tonnes at 5.4 grams per tonne gold beneath the open pit.

Empire shares were up 0.2 cents, or 9.09 per cent, to 2.4 cents at 12.55pm.