Wasabi Energy Ltd WAS AGG contract with AngloGold Ashanti Australia

  Wasabi Energy Ltd (WAS) - AGG contract with AngloGold Ashanti Australia

RNS Number : 1989S
Wasabi Energy Limited
28 November 2012

28 November 2012

                            Wasabi Energy Limited

                   ("Wasabi," "the Group" or "the Company")


       Water subsidiary signs contract with AngloGold Ashanti Australia



· First mining deployment of AGG's AquaArmour™ with AngloGold Ashanti

· Environmental considerations and flexibility of AquaArmour™ product key
to winning business

· Secondary sale to existing client for a further 7000 square meters

· Growing pipeline of upcoming sales


Wasabi Energy Limited (ASX:WAS, AIM:WAS, OTCQX:WSBLY) ("Wasabi"), an  emerging 
power producer,  is pleased  to announce  that its  subsidiary, Aqua  Guardian 
Group ("AGG"), of which Wasabi owns  79.2%, has completed its first mine  site 
sale and  deployment in  Western Australia  with AngloGold  Ashanti  Australia 

AGAA has taken  the lead on  environmental excellence in  water management  by 
signing an agreement with AGG to  roll out its innovative modular  evaporation 
and algal control system, AquaArmour™, at  the Tropicana Gold Mine in  Western 
Australia. AngloGold Ashanti Australia's parent company, AngloGold Ashanti, is
the third largest gold  producer in the  world. It has  20 sites in  operation 
across 10 countries with a focus on four operational regions which all display
semi-arid to arid,  water stressed  zones, namely;  South Africa,  Continental 
Africa, Australia and the Americas.

Executive Chairman  of  Wasabi,  John Byrne,  commented,  "The  deployment  of 
AquaArmour™ in  the mining  industry  is a  significant  step forward  in  the 
ongoing evolution of AGG. The mining sector has been a key target market  due 
to the  large number  of mine  sites in  arid, water  stressed areas  and  the 
importance of water  to the mining  process and to  the local communities.  In 
Australia there  are 364  operating mines([i]).  Approximately half  of  these 
mines are  located  in Western  Australia,  South Australia  or  the  Northern 
Territory. The majority  of mines use  open water storage  facilities and  are 
located in  arid  areas  (e.g.  western and  central  Australia)  where  water 
availability is relatively low and access to water is expensive.

"In 2011 over $8.3 billion was spent by the mining industry on water with  the 
Australian mining  industry  incurring  a  total  water  expenditure  of  $1.5 
billion, which was  more than  any other country  and almost  double the  next 
biggest spenders being Chile and China([ii]).

"With their rigorous health, safety and risk management assessments, this sale
and deployment to a global mining  company demonstrates the compliance of  the 
AquaArmour™ product and we expect an  increase in mining sales. The  product 
has already been tested and successfully deployed in a number of environments,
ranging from residential water, storm water harvesting and now mine site uses,
for the effective mitigation of evaporation, algal control and maintenance  of 
water quality.

"We have received interest  from a wide range  of potential customers in  both 
the mining sector and water authorities and we continue to see an acceleration
of the pipeline  from initial contact  through to sale  and deployment of  the 
modules. We look forward to providing ongoing updates as the activities of our
water subsidiary, AGG, grow.

"We  would  like  to  acknowledge   AngloGold  Ashanti's  commitment  to   the 
environment  and  water  conservation  at  its  Tropicana  mine  through   the 
application of the AquaArmour™ modules."

Tropicana, 70% owned and managed by  AGAA with Independence Group holding  the 
balance, is located 330 kilometres east-northeast of Kalgoorlie-Boulder on the
western edge of  the Great Victoria  Desert in Australia.  The Tropicana  mine 
site covers 13,000 square  kilometres of very remote  terrain. The climate  is 
arid and experiences  temperatures of  up to  45 degrees  Celsius and  between 
150mm and 250mm of rainfall per  year. The deployment of AquaArmour™  provides 
an economically viable, simple solution to securing the site's water  security 
and water quality. The mine is  currently under construction and is  scheduled 
to pour first gold in the December 2013 quarter.

The AquaArmour™ modular evaporation and algal control system will be  utilised 
in a water storage at the reverse  osmosis water plant at Tropicana, the  main 
supply of water to the site.

For Tropicana Gold Mine  Business Improvement Co-ordinator,  Ian Winn, it  was 
the flexibility  and  environmental  credentials of  AquaArmour™  that  proved 
central to the decision-making process.

Ian Winn commented: "The product is portable, very flexible, easily  scalable, 
requires minimal maintenance and  has a 20-year  life. The transferability  of 
the product is also an important factor for us as we are able to move it to  a 
different pond, or  even change the  shape of the  pond, and we  don't need  a 
large amount of  labour to move  it. The other  point is that  water does  not 
collect on the surface so we  don't need to pump it  out and if one unit  does 
get damaged it is easy to replace."

While Tropicana represents AGG's first mining application, seven installations
have already been undertaken in Australia with further deployments to occur in
the coming  months.  Installations  to  date  include  Victorian  Water  Board 
affiliates GWM (Grampians,  Wimmera Mallee) Water,  Gippsland Water and  South 
Gippsland Water. In South Australia, clients include the District Councils  of 
Mt Remarkable and Boolaroo.

We are now  seeing interest from  existing clients in  expanding their use  of 
AquaArmour™ with  a  recent purchase  of  AquaArmour™ for  a  second  storage 
covering approximately 7000 square meters by  one of the water utilities.  As 
in situ  performance  data becomes  available  we anticipate  an  increase  in 
secondary sales  to existing  clients and  those considering  initial  smaller 
deployments before committing to multiple sites.

Market Potential

Internationally, AGG  are in  the process  of establishing  initial sites,  in 
particular in South  America, where a  number of large  mining operations  are 
based in arid  areas such as  Chile. Opportunities for  deployments in  North 
America are  also  being  pursued  with the  first  deployment  in  the  water 
intensive fracking  industry  expected in  the  near future.  AGG  have  been 
building linkages to increase their capability through partnerships with local
companies in  international  jurisdictions for  manufacturing,  marketing  and 
deployment of AquaArmour™.  More recently  in WA, the  Merredin Shire  Council 
with assistance from engineering consultancy  firm Cardno (WA), has  installed 
AquaArmour™ on a  stormwater harvest and  recovery pond. This  project was  a 
finalist in the Infrastructure Innovation category and was highly commended at
the AWA WA Water Awards 2012.

The cost and usage of water is becoming  a major issue for many areas. In  the 
South American mining area in  the Atacama Desert in  Chile, 66% of the  water 
used is by the mining industry([iii]). Due  to the high demand for water,  the 
water rights are selling  for US$2,500 to  US$3,800 per megalitre  (ML)([iv]). 
Much of the water used at the mines is desalinated which is estimated to  cost 
US$3,000 to US$4,000 per ML([v]).

Within the fracking  market for shale  gas in the  US it is  estimated that  a 
typical shale gas  well requires 11.4  to 15.1  ML of water  for drilling  and 
completion([vi]) which is  the equivalent  of 4  to 6  Olympic sized  swimming 
pools. The shale  gas industry  currently pays at  least US$3,700  per ML  for 
source water to use in hydraulic fracturing of gas wells(6).

Within Australia the water  lost to evaporation from  major dams in 2011  was 
24,236.6 gigalitre (1GL = 1,000 ML)([vii])  which is over 9.5 million  Olympic 
sized pools. In November  2010, the Australian  Bureau of Statistics  reported 
that the amount of water consumed  by the mining industry across Australia  in 
2008-09 was 508 GL. With the mining sector growth especially in iron ore,  the 
mining water  use projections  provided in  the Pilbara  Regional Water  Plan, 
2010-2030, is expected to  increase from approximately 75  GL/year in 2006  to 
over 230 GL/year by 2012([viii]). Within  Australia the cost of water in  arid 
regions is in excess of AUD$2,000 per ML.

Significant cost savings can be achieved by the use of AquaArmour™ to  prevent 
evaporation. AquaArmour™ has an estimated cost between AUD$411 and $1,438  per 

About AquaArmour™

The AquaArmour™ system  is scalable  and projects have  been as  small as  950 
square metres  to 23,000  square metres,  while early  stage discussions  have 
progressed for a 150-hectare deployment.

Independently verified to save 88% of  the water that would otherwise be  lost 
to evaporation,  the technology  also inhibits  algal growth  by lowering  the 
temperature of  the  water  and  minimises  ultra  violet  and  visible  light 
penetration by  95%.  A  sustainable and  environmentally  safe  solution  for 
mining, agriculture, urban and rural water storages, it also has no effect  on 
dissolved oxygen levels.

Made of virgin polymer HDPE plastic, AquaArmour™ does not react with chemicals
like caustic soda, cyanide or highly acidic  water, while at the same time  it 
will not leach any contaminants to the water surface - something  particularly 
important for potable water.

Being hexagon in  shape, the  modules tessellate together,  forming a  blanket 
across the water surface. Each module  is kept stable on the water's  surface 
because it holds 80 litres  of water as ballast  and is designed to  withstand 
winds of up to 200km per hour.

For further information, please contact:

Wasabi Energy Limited
John Byrne, Executive Chairman                             +61 (0)3 9663 7132
Diane Bettess, COO
Cenkos Securities  - London  Financial Advisor,  Broker  & 
Ivonne Cantu                                               +44 (0)207 397 8900
Newgate Threadneedle - UK Media Enquiries
Josh Royston                                               +44 (0)207 653 9850
Hilary Millar

About Wasabi Energy

Wasabi Energy Limited  is listed  on both the  Australian Securities  Exchange 
(ASX: WAS)  and the  AIM  market in  London (AIM:  WAS)  as well  as  American 
Depository Receipts trading on OTCQX  Market (OTCQX: WSBLY). Wasabi Energy  is 
an emerging power producer that also invests in sustainable technologies.  Its 
power business  is based  on the  proprietary Kalina  Cycle® power  generation 
technology which utilises low grade, waste heat from industrial facilities  or 
geothermal sources to produce electricity. In a typical industrial application
of  the  Kalina  Cycle®  technology  can  increase  energy  efficiency  in  an 
industrial plant by up to 20%. Through its strategic investments Wasabi Energy
owns  a  79.2%  interest  in  Aqua  Guardian  Group,  the  developer  of   the 
AquaArmour^TM a water management, conservation and algal control product. Aqua
Guardian Group also has a  22.7% interest in the  air, water and minerals  ASX 
listed company CleanTeq (ASX: CLQ). Wasabi  Energy also owns a 19.2%  interest 
in Lignol Energy Corporation  (TSXV: LEC) an  advanced bio-refinery group  who 
recently purchased an 11% interest in Australian Renewable Fuels, a separately
ASX listed company (ASX: ARW) which produces liquid biofuels from a variety of
non-food grade feedstocks, from Wasabi Energy.

Additional information:



[i]Geoscience Australia - Australian Mines Atlas

[ii] Global Water Intelligence, "Mining a rich seam for water companies", Vol
12, Issue 7 (July 2011)

[iii]Azzopardi , T. (2011) Chile's Drought Dilemma, Business Chile,

[iv] BBC News (23 March 2012) - War for water in Chile's Atacama Desert: Vines
or Mines?

[v]Mining magazine (2009) Water, water everywhere?, 10/09/2009

[vi]Black &Veatch, "Nexus of Water and Energy"

[vii]AGG company website

[viii]Integrating the mining sector into water planning and entitlements
regimes, March 2012

                     This information is provided by RNS
           The company news service from the London Stock Exchange


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