Kentor Gold Limited (Kentor Gold or the Company) is pleased to announce the acquisition of the major item of equipment, the primary ball mill, for the And ash Gold-Copper Project.
Commenting, Kentor Gold Managing Director Simon Milroy said: “Securing this high quality mill on favourable terms is a significant enhancement of the economics of Andash and represents an important advance in the projects development.”
The ball mill is being supplied by the leading Finnish manufacturer Outotec, with an ABB motor, and has already been manufactured and packed ready for transport to site. The 6MW mill is 10% larger than was specified in the Andash Projects Definitive Feasibility Study, and will lead to an increase in the processing plants throughput.
However, the total cost to acquire and transport the mill to site is more than US$1 million cheaper than was budgeted in the Study. The price is fixed and denominated in Euro.
Most of the price is not payable until the mill is despatched in 2011 when it will be required at the site for installation.
The fixed price provides a considerable advantage in the face of both an expected increase in the price of ball mills as the global financial crisis recedes and demand grows, and also expected further rises in the cost of steel, copper and other raw materials
The mill has been manufactured with a six-piece shell and three-piece heads, thus considerably reducing the transport and installation costs.
Mr Milroy said: “Securing the mill at this stage demonstrates the Kentor Gold boards confidence in the Andash Project.”
Locking in the acquisition of what is by far the largest piece of equipment for the project removes a lot of risk regarding costs and the projects delivery schedule.
The contract for the mill is at a fixed price in Euro which allows the company to capitalise on the current relative weakness in the Euro.From:http://www.crushingmill.com/