Is It Bankable

Aberfoyle sought to reduce Hellyer project development risk to a greater degree than usual. Consequently the ore reserves estimate and feasibility study were particularly comprehensive. A detailed ore reserve study was completed based on extensive drill core and underground sampling, large scale pilot plant work and a detailed feasibility study. Leading external consultants were used for advice on commercial matters which impact on ore reserves and to audit major technical conclusions, including the results from pilot plant work and the ore reserve estimate. Other project risks were diminished by negotiating a State agreement covering security of title, royalty formula and environmental management procedures, by obtaining sales contracts, and by analysing Hellyer's position on an industry cost curve. The task of financing the project was much simplified by the extent and quality of information available from the ore reserves estimate and feasibility study report.