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Jabal Sayid in Saudi Arabia - The world class developing copper-gold mines

Global Arab Network - - Mohamed Tamer

Monday, 14 December 2009 19:46

Australias_Citadel_-_Jabal_Sayid__in_Saudi_Arabia_-_The_world_class_developing_copper-gold_mines

The Jabal Sayid copper-gold project being developed in Saudi Arabia by Australia’s Citadel Resource Group (ASX: “CGG”) is a world class asset that will be financially sound at a variety of copper prices, according to a just-completed Definitive Feasibility Study (DFS).

Melbourne and Saudi based Citadel announced today that the DFS – completed by international resource industry consultants, SNC-Lavalin and Coffey Mining, along with Citadel’s own team – demonstrated that the Jabal Sayid is both technically and financially robust.

The internationally-renowned SNC-Lavalin group, one of the leading engineering and construction groups in the world with offices in 35 countries and operations in some 100 countries, was also recently appointed as the Engineering, Procurement and Construction Manager for the Jabal Sayid project.

“The results of the DFS confirm that Jabal Sayid is a world class asset with a number of characteristics which position the project as one of the world’s premier developing copper-gold mines,” Citadel said in its report and study results released today to the ASX.

“The mining and processing methods are well proven and comfortably within industry standards and the financial outcomes demonstrate that the project will be sound at a variety of copper prices,” the Company said.

The DFS is based on the mining of Jabal Sayid’s Lodes 2 and 4 copper and gold mineralisation only. Lode 1 is currently the subject of an expansion study and has not been incorporated in the study results.

Results from the DFS are contained in the announcement lodged with the ASX. Highlights include:-

· The project has a high level of resource certainty with upside potential.
· Current mining inventory of 26.2 million tonnes (Mt) with 24.4 Mt in reserves (93%) at a copper grade of 2.3% (based on Lodes 2 and 4 only, with expansion potential from Lode 1).
· At a capital cost of US$280 million, Jabal Sayid’s low capital cost per tonne of annual production ranks it among the world’s most capital efficient copper projects of similar size and scale.
· Average cash operating cost of US$0.97/lb payable copper (net of precious metals credits) over life of mine ranks Jabal Sayid well within the second quartile of global copper producers.
· Major regional infrastructure is located close to the project site, such as sealed highway access, which will facilitate efficient delivery of project materials during construction.
· The project’s high-quality, clean concentrate is expected to be highly sought after by smelters in the region and globally.
· Jabal Sayid is logistically well placed, close to main east-west trade route to key markets in Europe, China and India.

Jabal Sayid, 50% owned by Citadel and the flagship project of Citadel’s extensive Saudi Arabian operations, is expected to be commissioned in 2011, with early site works and construction commencing early in 2010. The DFS has construction time at 17 months with a commissioning period of three months.

The project is located approximately 350 kilometres north-east of Jeddah, the provincial capital of the Makkah province and the second largest city in Saudi Arabia.

Global Arab Network

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