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of hard rock lithium.
“The electrification of transport, particularly in China, is one of
the biggest things to happen in the world,” said Mr Reed. It is the
hi-tech lithium based batteries that will be required to support this
electrification that is commonly seen as being the driving force for
a big leap in demand for lithium.
And finally, Reed’s Barrambie vanadium project is making
progress as well. Reed completed a definitive feasibility study
in 2009. However, the company has been working closely with
Chinese group NFC and local engineers Arccon since 2010 to
refine the original plant design and estimates.
“We expect savings on the capital expenditure in the vicinity
of $100 million and reductions in operating costs of around 6% as
a result of reworking the original feasibility study using Chinese
expertise,” said Mr Reed. “We believe this, combined with an
increase in demand for large-format batteries for use in Chinese
wind farms, will eventually see Barrambie up and running.”
STALKS OF REED
the growing stable of Reed Resources
CHRIS REED
MANAGING DIRECTOR
REED RESOURCES LTD
REED RESOURCES’ MEEKATHARRA GOLD
PLANT AND ADMINISTRATION SITE
securities analyst once said, “Reed Resources has
been very canny in acquiring assets that add value
to the company”.
The latest project to join the Reed stable is the
2.5 million ounce Meekatharra gold project, which
is located in WA’s Murchison region.
With gold prices at record highs, the acquisition of the
Meekatharra project in January 2011 has been very timely. In fact,
it has allowed the company to add an additional 130,000 ounces to
the project’s reserves within the first six months without drilling a
hole, and total reserves now exceed 500,000 ounces.
The project has a long history and as Managing Director Chris
Reed noted, “It seems as though just about everyone you meet who
has spent some time working in the West Australian gold industry
has spent some time at Meekatharra. The common theme among
them is they all seem to have a bullish view of its potential.”
Reed is currently working on a feasibility study with the aim
of bringing the operation back online in 2012 as a 100,000 ounce
per annum producer.
Mr Reed says that the rest of the stable is progressing towards
production as well. First cab off the rank will be the Mt Marion
lithium project of which it owns 70% with partner and operator
Mineral Resources. The project is expected to be in production by
early 2012 and is set to be the world’s second largest supplier
ONE OF THE MANY OPEN PITS THAT REED HAS ACQUIRED
AS PART OF THE MEEKATHARRA GOLD PROJECT
A
MINESITE 2011
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