In July 2003 Metcon Laboratories (a wholly-owned subsidiary of Ammtec Limited, Australia’s largest metallurgical and minerals testing consultancy – www.ammtec.com.au) entered into an agreement with Intec in relation to the operation and servicing of the Intec Gold Process (IGP) pilot plant site to be built at Metcon’s premises at Brookvale in northern Sydney.

In the September 2003 quarter, engineering design work for the IGP pilot plant was completed (with the assistance of Intec’s strategic partner HG Engineering – www.hgeng.com) and all equipment orders were placed and equipment was received and installed.

The construction, commissioning and initial operation of the IGP pilot plant was significantly funded by the Ivanhoe Mines group in return for an IGP technology licence. Drawdowns totalling A$875,000 under the terms of the IGP Funding Agreement were completed and Ivanhoe’s IGP licence is now unconditional.

Feedstock from the Hellyer tailings dam (100% by Intec in 2004)was the first material being campaigned through the plant.

Treatment of the Hellyer tailings contributed to the design, construction and operation of the Intec Hellyer Metals demonstration plant at Burnie.

This was followed during 2004, after successful laboratory testwork, by the supply of concentrate tonnages by third parties for paid campaign treatment through the IGP pilot plant.