GIP Gippsland

RNS Number:1636Z
Gippsland Limited
28 May 2004


28 May 2004


Gippsland Limited ("Gippsland" or "The Company")

DOUBLING OF TANTALUM PRODUCTION

The Directors of Gippsland Limited advise that the Company's consultant
engineers have determined that the initial production rate for the Company's
40Mt Abu Dabbab tantalum project can be increased by approximately 26% by over-
sizing the primary SAG mill and ball mill. This change will augment the ability
to subsequently double the project's production rate to 2Mtpa.

The initial 1Mtpa process plant design allowed for the employment of a 1.6MW SAG
mill operating in series with a 1.15MW ball mill. These two mills are now to be
replaced with a 2MW SAG mill and a 1.4MW ball mill which has been calculated to
expand the mill feed-rate to 1.26Mtpa.

The installation of the over-sized 2MW SAG mill and 1.4MW ball mill will enable
subsequent project expansion to be undertaken quickly and at relatively minimal
cost. This will be achieved by the installation of a second 1.4MW ball mill
which is calculated to expand the mill feed-rate to 2Mtpa.

The expansion to 2Mtpa can be achieved with minimal alteration to the process
plant design which will make allowance for the retro fitting of the second 1.4MW
ball mill. The 2Mtpa production can be achieved without increasing the size of
the mining equipment.

The Directors have previously stated their intention to expand the Abu Dabbab
project not long after the planned December 2005 start-up and see that the
initial installation of the two over-size mills will ensure that the project
quickly reaches its full potential in the most cost effective manner.

"Studies undertaken to date by the Company's consultant engineers indicate that
based upon a mill feed-rate of 1Mpta, the Abu Dabbab project will produce
approximately 420,000 pounds of tantalum per year, which equates to the tantalum
off-take agreements the Company currently has in place. The mill feed-rate
expansions to 1.26Mtpa and 2Mtpa are expected to result in a proportionate
increase in tantalum production" said Jack Telford, Executive Chairman".

The Abu Dabbab bankable feasibility study is progressing to plan and is expected
to be completed as scheduled by mid-July 2004.

The Directors are of the opinion that the Abu Dabbab mine has the potential to
become the world's largest and lowest cost tantalum producer.


For further information please contact:

Jack Telford
Executive Chairman
Gippsland Limited
Tel: +61 (0)8 93898611
jtelford@gippslandltd.com.au

Bill Sharp
Hoodless Brennan & Partners Plc
Tel: +44 (0)20 7610 8565
Fax: +44 (0)20 7538 1625
bill.sharp@hoodlessbrennan.com

Leesa Peters/ Laurence Read
Conduit PR
Tel: +44 (0)20 7936 9095
Fax: +44 (0)20 7936 9100
laurence@conduitpr.com



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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