It's been a crazy few weeks

Of particular interest to both the service providers and investors at the conference, was the fact that we have an option to purchase the Galmoy zinc-lead processing plant in Ireland. We were asked several times why purchase a processing plant before the feasibility study determines if we can profitably put the Kapok mine in to production and develop a new mine at Kapok West? Normally, the process would be to do the feasibility study and then buy or order the processing plant. Meridian is quite positive about the outcome of the Kapok/Kapok West feasibility study and in an environment of rising metal prices, in 12 months time securing access to a second hand processing plant is likely to be more difficult and much more expensive than right now. Therefore, we took the decision to secure an option on the Galmoy plant now. It comes with the added benefit of being a total plant which has only been shut down for a few months. The main advantage of a second hand plant over buying a new plant is that we will should save 12 months on the timeline to put the project back in to production. This means we have the chance of being in production in 24 months as opposed to the 36 months it would take if we bought a new plant.

After the Mining 2009 Conference, the Meridian Board went and visited the Lennard Shelf project and discussed our preparations for the upcoming Kapok/Kapok West drill program. This was a very valuable trip and it allowed the Board to get a real feel for the scope of the project and the operational challenges we are going to face with drilling through the wet season. Most days on the project now the temperature is up into the 40’s, so we are putting a lot of effort into managing the heat for our field staff and ensuring that they can cool down and remain properly hydrated. I think after a couple of days in the heat. the Board had a good understanding of what is facing us.

I have mentioned before that all our preparations for the Kapok/Kapok West drill program have been completed and this week we started to mobilise to site the contractor who is going to undertake the drilling for us. We have in the last week recruited a Project Geologist and an Operations Manager, so along with the drill contractor we are getting our team together as well. Our sense of anticipation is building as we are now not far from the drill program starting.

With new staff starting and the drill program commencing, the next few weeks look like being just as frantic as the last few.

Till next time...

Cheers

Jeremy
 

20 Nov 2009