October 4, 2000
Shareholder Update Newport Beach, CA - October 4, 2000 - Fenway International Inc. has commenced work on its second cement project in the Philippines, the Negor RR Cement Corporation mine on the Island of Negros Oriental. The Negor cement plant will be located near Guihulngan, some 100 km. Westerly across the Tanan Strait from Cebu.
The Negros Oriental Cement Project has been issued a Mineral Production Sharing Agreement (MPSA) and an Environmental Compliance Certificate (ECC) and can be brought to production once engineering data is upgraded to bank acceptable standards. Past investigation by Government field geologists gave limestone reserves of 390,000,000 tonnes; sufficient for at least 100 years at a production rate of 1,500,000 tonnes per year. However, Fenway's Professional Mining Engineer Basillio F. Ayson has reviewed the data extensively and concludes the tonnage is significantly understated and that mineable limestone tonnage is realistically greater than 1,600,000,000 tonnes. Average limestone grade is 46.53% CaO, suitable for manufacturing heavy industrial quality portland cement.
The significance to Fenway of the potentially higher mineable tonnage is that production capacity can be increased from the projected 1,500,000 tonnes per year to 2,500,000, the same rate as the Palawan Project. Comparative operating costs for a new and modern cement plant to operate at 1,000,000 tonnes per year would approximate +/-US$36.00/T; 1,500,000 tonnes per year would approximate +/-US$32/T; and 2,500,000 tonnes per year - less thanUS$20/T. Current figures given in Philippine newspapers for old cement plants operating near 1,000,000 tonnes per year range from US$48 to $58/T thus making a new plant for Fenway very cost competitive.
A diamond drilling contract has been signed with Roctest Machinery and Drilling Corporation and Engineer Ayson will supervise the program to upgrade proven limestone reserves before year end.
ON BEHALF OF THE BOARD
This material was prepared by the Company. Forward-looking statements in this release are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Those forward-looking statements are subject to certain risks and uncertainties and actual results could differ from those discussed. This material is Information only and is not an offer or solicitation to buy or sell securities.
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