GSF CORPORATION Limited Level 12 BGC Centre
28 The Esplanade
ABN 98 084 370 669
PERTH WA 6000
Tel: +61 8 9327 8989
17 March 2008 Fax: +61 8 9327 8900
For personal use only
LOW RISK / LOW COST PROJECT WITH US$2.1 BILLION IN CONTAINED METAL AT SURFACE
GSF Corporation Limited (ASX:GSF) is pleased to announce that Londoloza Resources
Corporation (“LRC”), a company that GSF is currently in the processing of acquiring, has
secured exclusive rights to undertake due diligence on three historic tailings dumps located in
Luanshya, a mining community located within the world renowned Zambian copperbelt.
• The three tailings dumps are estimated to contain 103M tonnes of tailings
• Previous sample drilling returned an average grade of 0.25% Cu across the
three dumps representing 258,000 tonnes of contained copper.
• US$2.1 billion of contained metal at current copper prices.
• Samples were not assayed for cobalt, gold or silver.
• All key project infrastructure is available – water, land, power, labour and
• Reduced project cost and mining risk with tailings material at surface.
• The exclusive due diligence period is three months and mobilization will
The three dumps (Old Dam – 40Mt, Akatiti Dam – 37Mt and Chonga Dam – 26Mt) are all
located in close proximity to the Luanshya township and are easily accessible by sealed roads.
The dumps are estimated to contain 103M tonnes of material with a surface area of
approximately 8.2 km2 or 820 hectares, the result of historical mining operations in the district
spanning over 75 years from 1930. A map outlining the dump locations is attached to this
Information provided to LRC has indicated that sample drilling returned average grades of
0.25% Cu across the three dumps representing 258,000 tonnes of contained copper. At current
copper prices this represents a contained metal value of US$2.1 billion. Importantly the samples
were not assayed for other valuable by-products typically found in the copperbelt including
cobalt, gold and silver.
Also mine operating costs and risks are greatly reduced with tailings re-treatment operations
with processing material already at surface. Treatment of the tailings would be via standard
flotation and SXEW (solvent extraction/electrowinning) circuits.
Key infrastructure for a project of this magnitude is available in close proximity to the dumps
including additional land, power, water, labour and established transport routes.
Copper ore historically mined in the copperbelt was of a very high grade (typically +2% Cu and
up to 17% Cu in some cases). The ore typically underwent primary and secondary crushing
before being processed via standard flotation circuit. The un-recovered copper particles in
solution (“tailings”) were transferred into dams where the solution was allowed to settle over
A combination of lower historic metallurgical recoveries and the advent of higher metals prices
have combined to see tailings dumps represent significant value when reprocessed with the
added benefit of no mining risk.
A detailed due diligence programme including sample drilling and metallurgical test-work will be
undertaken to determine the economic value of the tailings dumps following which LRC expects
For personal use only
to make an offer to purchase. Following purchase the Company expects to undertake a
detailed feasibility study to a bankable standard to support project financing.
Luanshya is located 280 km north of Zambia’s capital Lusaka and is a well established
copperbelt mining town having serviced significant copper mines including Roan Antelope
Mines, the first Zambian copper mine that started production in 1930 and also has the Baluba
Copper mine currently in operation and the Muliashi mine expected to go into production in
February 2009. The Luanshya concentrator produces copper and cobalt and with the mines is
currently owned by Luanshya Copper Mines Ltd. The town is well serviced with all essential
infrastructure including water, power, sealed highways, an air field and railway lines.
Zambia represents an attractive environment for mineral investment and development with:
• A stable, multi party democracy with non-tribal/ethnic politics.
• English language and legal system based on English Law.
• A tax regime encouraging mining investment coupled with a modern Mining Act (1995).
• A world renowned industrialised copper belt with a long established history of mining and
development representing the economic and social backbone of Zambia since the early
• A large established mining workforce including two universities with mining degree and
mining educated local workforce.
• Low cost hydro-electric power and extensive electricity transmission networks.
• A rich database of exploration and geological data.
• Revamped main road infrastructure.
Large mining companies currently with projects in Zambia include ASX/TSX listed Equinox Minerals
Ltd (its Lumwana project is set to be the world’s largest copper mine) and First Quantum Minerals
who have developed and purchased several large operating mines from the government controlled
ZCCM-Investment Holdings plc.
Coupled with the appointment of Johan Engelbrecht to the board of GSF, following a meeting of
shareholders to be held on 14 April, the Company will examine the skills sets required to develop its
projects and seek to appoint suitably qualified exploration and mining personnel to its board and key
management positions in addition to the technical team currently employed by LRC.
At the same time as pursuing the opportunities that the acquisition of LRC is expected to bring, the
Company is continuing with its existing wholesale seafood business although current trading
conditions within the wholesale seafood market, particularly the Company’s primary export market,
continue to deteriorate, primarily due to the rise in the value of the Australian dollar. This has limited
the Company’s ability to undertake new profitable transactions with its overseas customers. The
Company is examining ways to improve the profitability of its trading activities and will examine other
opportunities within that industry as they are identified by the Company.
Depending on the nature and scale of any transactions contemplated post the completion of due
diligence, ASX may require the Company to comply with Chapters 1 and 2 of the Listing Rules in the
GSF Corporation Ltd
Map of Luanshya Tailings Dumps
For personal use only
26Mt Akatiti Dam
Londoloza Resource Corporation - The Londoloza team comprises skilled businessmen,
engineers, metallurgists, project managers and geologists who work out of Canada, Australia,
Zambia and South Africa and have travelled extensively throughout Africa, in addition to its
management team based in Zambia and South Africa. The Londoloza Board of Directors is made up
of professionals who bring a wealth of experience from various backgrounds, including geology,
mining, finance, legal, communications and investor relations.
Capitalizing on this unique positioning in the mining industry, Londoloza is able to build value for its
shareholders, while simultaneously making valuable contributions to the Zambian economy.
Londoloza is respectful of local customs and cultures, mindful of its role as an ambassador in the
country it operates and sensitive to community and environmental concerns. We are committed to
community participation and investment in the local community. Londoloza’s strength in
“understanding local customs” and our policy in local economic empowerment, social and local
economical responsibilities is experience gained in southern Africa.
Zambia - Centrally situated in southern and central Africa, Zambia's abundant resources include
mineral deposits, arable land, water and hydroelectric power. A democratic and peaceful nation, the
country has in recent years begun to reap the rewards of political social and macroeconomic stability,
becoming one of Africa's emerging economic powerhouses. The government is committed to creating
an enabling environment to attract further investment and stimulate private sector deve lopment,
with econom ic growth bringing about improvements in both social and physical infrastructure.
Although mining and agriculture have long been vital to national development, efforts to further
diversify the economy mean that increased attention is being given to the manufacturing and
The traditional focus of the Zambian economy has been mining and quarrying, in particular the
mining and refining of copper and cobalt, of which the country has vast reserves. Following difficult
operating conditions in the 80s and 90s, the sector has seen a turnaround in the past several years
due to factors such as increased capital investment, improved output due to better production
techniques, the expansion of existing operations and the commissioning of new mines, and the
substantially higher copper prices on international markets. The sector continues to play an
important strategic role in economic development as a source of foreign exchange and employment.
Resources companies with enormous land holdings locking up the mineral wealth in Zambia
preventing development of tenements into operational mines have to rethink their strategies. The
current Zambian Government policy of “use it or lose it,” is unlocking land and creating the
opportunity for well funded companies to actively perform and commence with exploration work in
areas previously locked-up or areas where no work has been done by the permit holders.
For personal use only
This announcement has been prepared relying on information provided to GSF by LRC. At the time of drafting this
announcement, GSF has not independently verified the information regarding the tailings dumps. GSF has no reason
to believe the information is not accurate and intends to verify this information whilst conducting due diligence on the
This release contains certain forward-looking statement that may involve a number of risks and uncertainties. Actual
events or results could differ materially from the Company’s expectations and projections. Except for statements of
historical fact relating to the Company, certain information contained herein constitutes “forward-looking statements”.
Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”,
“believe”, “anticipate” and other similar words, or statement that contain events or conditions “may” or “will” occur.
Forward-looking statements are based on the opinions and estimates of management at the date the statements are
made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the forward-looking statements. These factors include the inherent
risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting
drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or
unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future
and other factors. Circumstances or management’s estimates or opinions could changes. The reader is cautioned
not to place undue reliance on forward-looking statements.