Minemakers Limited

Minemakers Limited

November 15, 2010 16:27 ET

Mining Licence Application Lodged For Sandpiper Phosphate Project, Namibia

TORONTO, ONTARIO--(Marketwire - Nov. 15, 2010) - Minemakers Limited (TSX:MAK)(ASX:MAK)(NSX:MMS) ("the Company") holds a 42.5% interest in the Namibian registered joint venture company Namibian Marine Phosphates (Pty) Limited ("NMP") with ASX listed Union Resources Limited (ASX:UCL) holding 42.5% and the Namibian partner Tungeni Investments cc ("Tungeni") holding 15%.

NMP has lodged the Mining Licence Application ("MLA") which covers the Exploration Licences 3414, 3415 and 3323. The MLA was lodged with the Namibian Department of Mines and Energy and is registered as MLA 170. The resources within the MLA area include:

Indicated Category: 73.9 million dry tonnes at 20.57% P2O5
Inferred Category: 1.507 billion dry tonnes at 18.7% P2O5

The lodgement of the MLA is in accordance with the terms of the Shareholders Agreement dated 30 July 2010 and supports the recently announced Scoping Study results. The financial highlights from the Scoping Study Base Case Study over the first 25 years of project operation are summarised as follows:

  Scoping Study Base Case
Scoping Study Base Case Financial Model 25 years
Scoping Study parameters ±30%
Saleable Rock Phosphate per annum 3.0Mtpa
Cash Operating Costs, FOB Walvis Bay $57.76/t
Capital Costs (Years 1-3) $144M
Capital Costs per tonne $7.65.t
NPV @ 10% discount rate $312M
NPV @ 15% discount rate $133M
IRR 25.5%
* All dollar figures are expressed as United States dollars ("US$"), unless expressed otherwise.

The NMP team is now working diligently on finalising the programme, budget and consultant team to complete the Feasibility Study for the project.

The potential quantities and grades disclosed in this press release are conceptual in nature, there has been insufficient drilling to define an enlarged Mineral Resource, and it is uncertain if further exploration will result in the determination of an enlarged Mineral Resource. The Scoping Study is preliminary in nature and includes inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the Scoping Study will be realized.

Andrew Drummond, Managing Director

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Andrew Drummond, who is Managing Director of the Company and a Fellow of The Australian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Drummond has sufficient experience deemed relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and a 'Qualified Person' as defined in National Instrument 43-101 – Standard of Disclosure for Mineral Projects.. Mr Drummond consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

ABN 48 116 296 541

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