Transportation Study Results - Tshimpala Project

Transportation Study completed indicates two cost effective options for transporting material from its recently acquired high-grade lead and silver Tshimpala Project in Malawi.

Quoted transport and logistics costs indicate an all-in cost of up to US$125/tonne of material transported by both road and rail from Lilongwe to identified ports in Asia

Based on the results of this study, Force is currently finalising arrangements with a global logistics company in regards to securing a fixed price contract for the transportation and associated handling of 100% of lead and silver production from the Tshimpala Project


Force Commodities (Force or the Company) (ASX Code: 4CE) is pleased to announce the results of its Transportation Study which has identified two cost effective options for transportation and logistics support of lead and silver production from its recently acquired Tshimpala Project located in the Republic of Malawi (the Project).

Lilongwe Routes.jpg

Map 1: Transport options from Tshimpala Project to Nacala and Beira Ports

The Transportation Study, which was completed by the Company’s executive management in Perth and Malawi and retained consultants, has identified two options:

a)      export via the port of Nacala in Mozambique utilising the existing rail network;

b)      export via the port of Beira in Mozambique utilising existing road infrastructure.

  

The fixed price quotations secured by the Company for each of the above options incorporate the following inclusions:

a)      offloading of the material from trucks from the Company’s Tshimpala Project;

b)      loading and sealing containers;

c)      loading these containers on trucks/rail;

d)      transport to the ports of either Nacala or Beira in Mozambique;

e)      all export clearances out of Malawi and transit declarations into Mozambique;

f)       port clearances at either Nacala or Beira;

g)      port and shipping line charges at either Nacala or Beira; and

h)      ocean freight from either Nacala or Beira to identified ports in Asia.

The quotes exclude transport of material from the Tshimpala Project to rail siding and road transportation depot, marine cargo insurance and import clearance at the destination port in Asia, all of which will be for the Company’s account.

The quotes received indicate an all-in cost of up to US$125/tonne of material transported by both road and rail from Lilongwe through to identified ports in Asia

The Transportation Study has also indicated a minimum timeframe of 7 days for transport and clearance at either the Beira or Nacala Ports.

As previously advised Force is currently finalising arrangements with a global logistics company in regards to a fixed price contract for the transportation and associated handling of 100% of lead and silver production from the Tshimpala Project in Malawi and onto major ports in Asia. The Company anticipates making an announcement on this matter shortly.

Contact:

Jason Brewer                         
Managing Director    
Force Commodities Limited
Tel: +61 (0) 8 6426 1421        

David Tasker
Chapter One Advisors
Tel: +61 433 112 9036
Em: dtasker@chapteroneadvisors.com.au

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