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Olympia Resources Ships First Zircon Concentrate to China
Perth, May 1, 2006 (ABN Newswire) - Olympia Resources (ASX: OLY) has shipped the first 120 tonnes of zircon concentrate from Kalimantan, Indonesia for trial testing by Chinese customer Zhangzhou Antai Zircon Industrial Development Co. Ltd ("Zhangzhou").
A second trial shipment is planned to China for Zibo Qi-Culture Technical and Economic Development Co. Ltd ("Zibo") in May.
Zhangzhou and Zibo have each agreed to purchase from Olympia at world market prices up to 50,000 tonnes of zircon per annum over the next 10 years. The zircon concentrate, containing 75-80% zircon, is purchased by Olympia from small zircon producers in Kalimantan; an under explored mineralised province Olympia believes is highly prospective for zircon and other heavy mineral sands.
Olympia plans to source approximately 35,000 tones of zircon per annum from local producers and anticipates increasing supply by establishing its own zircon mining operation in Kalimantan to produce up to 100,000 tonnes of zircon per annum. Olympia is aggressively exploring in Kalimantan with the aim of identifying a large resource containing at least one million tonnes of zircon.
Olympia Resources managing director Peter Gazzard said, "Our first shipment represents the beginning of what we hope is a very profitable long-term relationship with the Kalimantan mining community and our Chinese customers. This shipment represents early cashflow for Olympia, and we anticipate future cashflow from further sales of locally produced zircon will fully fund our zircon exploration program in Kalimantan.
Olympia's core objective is to become a reliable and respected supplier of premium quality heavy mineral sands, particularly zircon, to the world market. Kalimantan is important to achieving this objective."
After the second trial shipment of 120 tonnes in May, larger shipments are planned, progressively increasing zircon sales to approximately 3,000 tonnes per month.
Like other mineral commodities, zircon prices are being driven by strong demand from China and India. Zircon is extremely hard and resistant to corrosion. It is used in the steel industry to line blast furnaces, in the ceramics industry, and in engines, electronics and spacecraft. Zircon products are also used in computer disc drives, for lightweight warmth and protection in clothing, and in many domestic products such as ballpoint pens and wear-resistant knives.
Source:
Peter Gazzard
Managing Director
Olympia Resources Limited
www.olympiaresources.com
About OLYMPIA RESOURCES LIMITED
Olympia Resources (ASX: OLY) is a Western Australian ASX-listed company focused on the exploration and development of a range of resource projects. OLY is developing the Harts Range Abrasives deposit Olympia Resources Limited near Alice Springs in the Northern Territory and plans to begin mining heavy mineral sands at the Keysbrook Project in the South-Western Australia in early 2007. OLY has also confirmed the existence of potentially significant gold mineralisation at Bruce's Prospect in the Northern Territory.
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