Corporate Strategy
At the end of FY2006 the Company launched a major transformation process. Changes - which included new board directors, a new executive management team and a new direction for the business (which more recently involved the name change to Tamaya Resources Limited - were required to position the Company better to fully utilise the assets and capital invested in the business.
The Company has already delivered operational improvements which will see a stronger financial performance over the next reporting periods.
In the first Quarter of FY2007, the board proceeded with its strategy to implement changes to ramp-up performance in Chile and to give new direction to the overall business, including the management of the Company's Australian assets.
Tamaya Resources are committed to building on the revenues generated by the Company's interests in Chile during FY2007. The Company will continue to focus its attention on expanding production, reducing costs, and securing additional projects as part of a project pipeline to underpin continued growth in shareholder value.
For the board and new executive team, the immediate term focus will continue to be to drive the performance of Tamaya Resources Chilean assets in particular, and early results indicate the Company is already seeing improvements in both throughput and recoveries.
The Executive Team is currently reorganising the operational management team in Chile, and key specialist appointments have been made to bring suitable skills to bear on mining, planning and metallurgical performance during FY2007.
The copper industry is undergoing a period of exciting demand and supply dynamics; with the outlook for copper as good as it's been in several decades. With extensive supply side disappointments and robust demand, this environment is expected to continue for some time. The board and executive team believe Chile is an excellent market in which to develop Tamaya Resources copper interests.
A Focus on Operational Performance
In FY2007, the Company has embarked upon a vigorous campaign of operational improvement, with a focus on expansion and improvement of the metallurgical facilities at Punitaqui, Chile.
The board and management are committed to introducing a culture of planning, budgeting, focus on execution against budget, with rigorous controls and accountability for performance. This process of improvements and change is ongoing, and regular reports will be made on progress.
A better understanding of the Assets
The Company has published a new resource estimate (30 June 2006)* for the Cinabrio Mine following exploration success over the last 12 months in Chile.
While an updated JORC Resource estimate has been published as part of Tamaya Resources annual reporting, it is expected that these Resources will be rapidly converted to reserves as appropriate mine planning and design is undertaken. The Company is fast-tracking the implementation of best practice mine planning systems to expedite this reserve development.
Resources as at 30 June 2006 have been estimated at 7.85 million tonnes grading 1.63 % Total Copper, including 0.10 % Soluble Copper, at a cut-off limit of 0.6 % Copper. The new resource represents an increase of 31.9 % in total contained Copper compared to the estimate published in the 2005 Annual Report, as at 30 June 2005, and extends the life-of-mine (LOM) at present production levels, while providing the potential for sustaining higher production levels from the mine into the future.
To increase the Reserves and Resources
The recent exploration programme, which was announced in early August, will take most of the 2007 financial year to complete. Importantly, its cost of US$1.8m (approximately A$2.4m) will be funded from cash flow. The key objective of the programme is to increase the reserves and resources at Cinabrio, and to establish additional resources over several exciting copper prospects at San Andres and Dalmacia.
Realising value from the Australian interests
In early FY2007, the Company set-up a project team to actively review and progress value enhancing strategies for the Australian assets of Tamaya Resources. These include a number of exploration leases as well as an option over the mill at Rishton in Queensland.
The board has advised that it will be announcing plans to unlock value from these assets, and we will formally announce the Company's Australia strategy in early calendar 2007.
Hugh Callaghan
Executive Chairman
Tamaya Resources
06 Oct 2006
*The information in this report that relates to Mineral Resources is based on information compiled by John Clifford (who is employed by Clifford Consultants Limited) and who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Clifford has sufficient experience which is relevant to the style of mineralisation, the type of deposit under consideration and the activity that he is undertaking to qualify as a Competent Person as defined by the JORC Code. Mr. Clifford consents to the inclusion in this report of the matters based on the information provided in the form and context in which they appear.
