Petaquilla Copper optimistic study will show copper project in Panama as viable

Monday, February 11 2008 @ 10:36 am EST

Contributed by: Don Winner

LONDON (Thomson Financial) - Petaquilla Copper Ltd said it remains optimistic that the final front end engineering and design study (FEED) study will show that the Petaquilla copper project in Panama remains viable, and said it sees an opportunity to provide power and port facilities to the project, which would substantially reduce capital costs. The company had said on Feb 8 that a report estimated the capital cost to develop the project at 3.5 bln usd. The company said Petaquilla Infrastructure Ltd, a company created for power, port and related infrastructure development for the Molejon gold mine of Petaquilla Minerals Ltd, will also be able to make these facilities available for the Petaquilla project. The company said Petaquilla Infrastructure is in advanced talks with a global power producer for the construction of a 360 MW thermal power plant on the Caribbean coast 16 kilometres north of the project. It added that the proposed power plant will have a larger capacity than that required for the Molejon gold mine and the Petaquilla copper project. The company said the power plant will be run as a separate cash flow business by Petaquilla Infrastructure, which will sell to a greater market over and above providing "over the fence" power to the Petaquilla project. ans/rfw

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