Perth, Feb 25, 2009 AEST (ABN Newswire) - CityView Corporation Limited (ASX:CVI)(PINK:CTVWF) is accumulating a valuable commodity portfolio of copper, gold, diamonds and rare earths and an oil refinery.
CityView's strategy is to secure Government endorsed legal title to key resources in Africa and upgrade them to bankable feasibility/ production for minimum dilution to CityView's share capital.
Management has a long successful track record in mining and energy.
Why a Commodity Basket is still desirable despite the recent price falls
- Gold: There is no better regulator for the value of currency than gold.
- Copper: The BRIC economies Brazil, Russia, India and China are still in a metals-intensive stage of development.
- Diamonds: Supply of rough diamonds is declining.
- Oil: World consumption of oil exceeds new discoveries of oil
Why Angola?
- Angola has become Africa's largest oil producer: current oil production almost two million barrels of oil per day.
- Angola had US$19 billion in foreign reserves in October 2008
- Angola has huge potential for minerals and diamonds.
- Angola's sovereign risk rating has risen to 3 tier range.
- Favourable tax breaks and working conditions. Small population.
Angola Metals
CityView owns approx 45% of Fortitude, which is chaired by Ian Egan. CityView plans to acquire the balance of the shares in Fortitude.
Fortitude holds a controlling interest in nine concession areas totaling more than 18,000 square kilometres of prime mineralised areas in Angola.
Fortitude - Project Licences
--------------------------------------------------------- Licence Percentage Area---------------------------------------------------------Copper: Cachoeiras de Binga 80% 3,615 sq km Zenza Dondo 70% 747 sq km Benguela 70% 3,943 sq km Benguela South West 80% 355 sq km Bentiabe 80% 183 sq kmGold: Chipindo 60% 1,433 sq kmCarbonatite: Longonjo Minerals 70% 3,760 sq kmDiamonds: Longonjo Diamonds 38% 3,000 sq kmPegmatite: Ucua 70% 1,369 sq km _______________ 18,405 sq km---------------------------------------------------------
Fortitude - Metals Portfolio
Five copper licences running for several hundred kilometres along the western seaboard of Angola and encompass the greater part of the Upper Cuvo formation, where copper mineralisation has been reported along its entire length. It has the potential to be a new copper province.
Included amongst the copper licences is Cachoeiras de Binga on which over 6,000 metres of core has been drilled.
Fortitude's objective is to bring this resource to a bankable feasibility for early production. It will be a low cost operation.
Chipindo Gold licence area with high gold grades reported in artisinal workings. Its geology is similar to the Minas Gerais gold area of Brazil and to the Kalgoorlie region of Western Australia.
Longonjo copper-gold-rare earths licence area containing Catabola and Longonjo Carbonatite.
At Catabola copper and iron oxide mineralisation has been identified over a 1.6 kilometre strike. At Longonjo Carbonatite niobium, tantalum and uranium minerals have been identified.
Longonjo diamond licence ultimately to be transferred to CityView's diamond portfolio.
Diamond Concessions
CityView has acquired 18.5% of Angola Diamond Holdings Limited, the parent company of Canzar Resources Limited: the operator of the Nhefo and Luachisse Diamond concessions in Angola. CityView plans to acquire the balance of the shares in Angola Diamond Holdings Limited.
Nhefo covers most of the alluvial areas of the Rio Luachimo in Luanda Norte. Luachisse is located in the province of Bie.
------------------------------------------- Canzar's Percentage Area-------------------------------------------Nhefo 42% 3280 km2Luachisse 41% 2700 km2-------------------------------------------
Equipment purchase orders have been negotiated to acquire for Nhefo one 100 tonnes per hour DMS plant, one 50 tonnes per hour DMS plant and one 20 tonnes per hour DMS plant.
An economic model has been prepared using the following parameters: feed into the scrubber unit at double the DMS plant capacity (340 tonnes per hour), a grade of 15 carats per 100 tonnes, a diamond price of US$200 per carat and operating costs at 40% of income.
Refinery
CityView plans to participate in a refinery capable of refining approx. 50,000 bpsd of crude oil which is to be upgraded to 100,000 bpsd.
The refinery will be located in Nigeria and the approximate production breakdown is estimated to be;
--------------------------Product Rate (BPSD)--------------------------LPG 1550Naptha 3784Fuel Oil 8772Megas 17370Kero & Diesel 13964Asphalt 4560--------------------------
West and Southern Africa do not have enough refinery capacity. This situation is forecast to continue. Much of the fuel consumed in West Africa has to be imported from Europe. Consequently refined products are in short supply and very expensive.
Summary
CityView's target this year is to:
- Acquire the remaining shares that it does not already own in Fortitude Minerals Limited and then bring Cachoeiras and Longonjo to bankable feasibility/production and undertake exploration on the other concession areas.
- Acquire the balance of the shares in Angola Diamond Holdings Limited and then bring Nhefo into production, followed by Luachisse.
- Complete the acquisition of the refinery and proceed to installation and mobilisation.
Contact
CityView CEO, Mark Smyth
Telephone: +61-8-9226-4788
Facsimile: +61-8-9226-4799
Web: www.cityviewcorp.com
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