Reed Resources mulls spin offs for some projects, fine tunes two major mines
Mineral resource firm Reed Resources Ltd (ASX: RDR) said on Thursday that it may be spinning off some of its various project portfolios in Western Australia though the company said that it is holding on to the Barrambie vanadium project while plans are underway to reactivate the Comet gold project in Kalgoorlie by June 2011.
Likely to be spun off were the company's Mt Finnerty iron ore and nickel exploration project in Coolgardie and the Bell Rock Range nickel and copper exploration project in Warburton, in a move described by Reed Resources managing director Chris Reed as a unique business model while noting that some projects "are bigger than the others, some are more advanced, but each one could run as a separate company if the board decides to."
The company's biggest asset, the Barrambie in south of Meekatharra, would be kept within its reach as Mr Reed revealed that a joint venture is in the works to produce lithium carbonate from the site instead of just selling spodumene since the processed product fetches more value or even twice as much as the raw produce.
As for its Comet Vale gold project, Reed said that some four months would be required to re-modify its Nimbus mill and get it running to resume production following the company's decision in June to stop its underground mining operations at the Sand Queen mine due to its inability to secure toll processing services.
Mr Reed said that the company is looking at a June schedule next year for Nimbus' resumption of full operation, from which Reed is planning to "take the open pits out, stockpile the ore and by the end of the year, have the underground operation ramped up to 50,000 ounces per annum."