The
project is located in the Eyre Peninsula, South Australia, and the mining
rights were Dutton Bay (Right certificate number EL4605, the same below), Mount
Hill-Koppio (EL5065), Wanilla (EL4384), Greenpatch (EL4885 ), and Tumby Bay
(EL4998), totally with an exploration area of985km2. The Rights of Mining
belongs to Centrex Metals Limited (hereinafter referred to as CXM) and its
wholly owned subsidiary.
In
2012, CEA was commissioned by Wuhan Iron and Steel Group Co. (WISCO) to
evaluate the above mining rights, in regards to the economic behavior of WISCO
private placement that was to be undertaken, with September 30, 2012 as the
base date of assessment.
The evaluation
project exists in multiple characteristics: (1) The assets to be assessed are
located abroad, involving too much interests of mining rights; (2) the
information was prepared in English, involving a large amount of translation;
(3) As the exploration reports ( Mineral Statement or the resource estimate
report) prepared under the requirement of the Australian JORC are different
from the domestic requirements on norms and geological prospecting reports that
results in no reflection in the report of the large number of geological works,
the valuers who were in the cooperation with the relevant technical personnel
of the entrusting party, had accessed to databases and viewed a large number of
historical data, and ultimately determined the effective amount of works. In
consideration of that the exploration project has not yet reached the degree of
detailed investigation, CEA adopted the cost method to evaluate the mining
rights that was recognized by the SASAC and the CSRC, and praised by the entrusting
party.
