ST FRANCIS MINING LIMITED 2000-01-31 ASX-SIGNAL-G
HOMEX - Perth
BLUEFIRE GAS LTD
On the 2nd July 1999 the Company made a wide ranging announcement to
the ASX regarding the acquisition of Bluefire Gas Ltd.
On the 28th September the company also announced that Bluefire was
currently quoting on CNG bus conversions up to a value of AU$73
Bluefire is operational in India, Indonesia, Thailand and is also
exploring opportunities in many other countries.
During the Quarter Company executives spent considerable time in
those countries laying the foundations for the future growth of the
Negotiations with significant global overseas companies are at an
advanced stage and the Board is hopeful that during the current
quarter some of those negotiations will lead to contractural
During the latter part of the quarter Bluefire commenced construction
of an initial two autogas fuel dispensing stations at Denpassar on
the island of Bali, Indonesia. Bali has a specific "Blue Sky" program
and on completion of these stations during February, Bluefire will be
very well positioned in that market place.
Bluefire already has one autogas fuel dispensing station in Jakarta
and the rights and agreement to construct a further 30 stations.
Bluefire has exclusive agreements with several well established
Australian firms to allow it to service the Alternate Fuel Industry
with a turnkey package of vehicle conversion kits and fuel dispensing
equipment together with gas supply agreements.
Bluefire's expertise is in the field of Liquid Petroleum Gas (LPG),
Compressed Natural Gas (CNG), and Liquid Natural Gas (LNG) for motor
vehicle engines and stationary engines. This covers cars, trucks,
buses, motorcycles, forklifts and stationary applications such as
generators and other machinery. Bluefire will also participate in the
ownership of fuel outlets and control the sale of fuel.
BOLIVIA AND CHACARILLA EXPLORATION
The directors have received two proposals from companies domiciled in
the United States of America. Both proposals would require St Francis
to sell its share of the Bolivian asset in return for equity. The
proposals are currently being thoroughly investigated.
These discussions have proceeded well during the quarter and
culminated in a visit to the USA by one of the company executives
immediately prior to Christmas.
Negotiations are now at an advanced stage to settle various
outstanding issues, the settlement of which will allow the project to
be moved into a publicly listed US company. The directors remaining
confident that this transfer of the Bolivian project into a publicly
listed US company can be achieved by June 2000.
A review of all date is continuing with a view to the possible future
establishment of a trial mining operation prior to completion of
AUSTRALIA AND THE COOLGARDIE NICKEL/GOLD PROJECTS
During the quarter St Francis signed an exploration and option to
purchase agreement with Mining Project Investors Pty Ltd subsidiary
Spinifex Nickel Pty Ltd.
The Mining Project Investors Group has a reputation as one of
Australia's premium nickel project explorers and developers.
The agreement covers a number of tenements including the Nepean
Nickel Mine where in excess of 1.1 mt of nickel was produced at a
grade of 2.99%Ni from an underground mine.
The agreement allows for three by one year exploration periods after
which not less than $600,000 must be expended on exploration.
Spinifex may then exercise an exclusive option to purchase all St
Francis's rights to mine for the consideration of $1,000,000 and a
Royalty of up to $4,000,000 payable at the rate of $2.00 per tonne of
nickel ore milled.
Further, if as a consequence of the nickel exploration Spinifex
produces Gold from the tenements, a royalty of up to $4,000,000 will
It should be noted that this agreement does not cover the Norris Gold
Plant or any other gold tenements, especially the Havilah gold
Discussions are ongoing with a number of other parties interested in
these gold assets.
During the quarter the company continued negotiations with various
parties regarding joint venture on the company gold tenements.
Wiluna A - St Francis 45% (4,700ha), Wiluna B - St Francis 50%
(300ha), Wiluna Mines Ltd.
earning 60%. Project Manager, Great Central Mines Ltd
An annual report has been received from the project manager and this
is currently being assessed.
St Francis 100%
St Francis is looking for a joint venture partner for this project.
The Proforma Statement of Consolidated Cash Flows is a separate
I R Sandover
MORE TO FOLLOW