Tiger Resources Limited - Kipoi Project - Development Update

PERTH , Western Australia , Oct. 28 /CNW/ - Tiger Resources Limited (ASX /TSX: TGS) ("the Company" or "Tiger") is pleased to provide an update regarding the development of the proposed US$30 million Stage 1 copper mining operation at the Kipoi project.

    
    Highlights

    -   Appointment of leading engineering group to design, construct and
        commission the Kipoi Stage 1 treatment facilities.
    -   Appointment of experienced consulting group to manage mining
        contractor tender process.
    -   Appointment of qualified Mining Engineer as Project Manager.
    -   Revised pit design work indicates potential to reduce pre-production
        mining period to 4 months and therefore reduce pre-production capital
        expenditure.
    

Design, construction and commissioning of treatment facilities

DRA Mineral Projects (Pty) Ltd of South Africa ("DRA") have been awarded a contract to review all process and infrastructure requirements for the Kipoi Stage 1 development and provide a lump sum proposal to undertake the design, construction and commissioning of the Kipoi Stage 1 treatment facilities by December 2009 . DRA's scope of work will also include all necessary infrastructure and other works needed to get the operation suitable for Tiger to allocate operational staff and commence operations.

DRA has designed and constructed Heavy Media Separation (HMS) plants for nickel mines in Botswana , copper producers in the Katanga Province, and for platinum, coal and diamond producers in South Africa . DRA has a reputation for designing quality, cost effective fit-for-purpose plants. DRA and its associate companies employ over 2,000 staff in offices located around the world.

Tiger has also appointed a qualified Mining Engineer to be the Project Manager and Tiger's representative to oversee the engineering work being conducted by DRA. He will be based in Johannesburg and operate out of DRA's offices.

Mining tender

Coffey Mining from Western Australia have been appointed to prepare mining tender documentation for issue to a short list of prequalified suitable sub-contract mining companies. Coffey Mining will issue the tender, receive and evaluate tender submissions, and make recommendation for award. Their work will also incorporate co-ordinating and validating the mine planning and scheduling work for the Stage 1 Kipoi Project development. Coffey are a well respected internationally recognised consulting mining group with offices around the world.

Revised pit design

In conjunction with experienced consultants the Company has recently completed a revised pit design for the Stage 1 development. The revised pit design work incorporates various improvements to increase the efficiency of mining operations, and also includes an alternative mine plan. The reworked mine plan has the potential to deliver a reduction in pre-production mining from six months to four months, thereby further reducing the pre-production capital expenditure and allowing the Stage 1 development to be brought into production earlier.

Development Timing

The Company continues to target commencement of production for mid 2010.

Additional Notes:

Caution Regarding Forward Looking Statements and Forward Looking Information: This release contains forward-looking statements and forward looking information, which are based on assumptions and judgments of management regarding future events and results. Such forward-looking statements and forward looking information, including but not limited to those with respect to the development of the Kipoi Project, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual market prices of copper, cobalt and silver, the actual results of current exploration, the availability of debt financing for a company that does not have any producing properties, the volatility currently being experienced in global financial markets, the actual results of future mining, processing and development activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's Annual Information Form, under the heading "Risk Factors". The Company's Annual Information Form is available under the Company's profile on SEDAR at www.sedar.com.

For further information: in respect of the Company's activities, please contact: David Young, Managing Director, Tel: [phone], Email: [email protected]; Reg Gillard, Chairman, Tel: [phone], Email: [email protected]; Patrick Flint, Director, Tel: [phone], Email: [email protected]; Company website: www.tigerresources.com.au