Reservoir Provides Progress Report of Brodarevo Feasibility Studies

Zigma A.D. Niksic (“Zigma”), of Podgorica (Montenegro) under the supervision of the Company’s main contractor Energoprojekt Hidroinzenjering Co. Ltd. (“Energoprojekt”) and the Mining and Metallurgy Institute of Boris undertaking geotechnical drilling and sampling at Brodarevo. One drill rig started in early July, with a second added subsequently to accelerate the drilling program, which should be completed by month end. The program aims to test the geotechnical properties of the sediments and bedrock both in the river and the river banks to assist in the final designs for the Brodarevo dam foundations and infrastructure.

Testwork was completed in July on the 1:40 scale hydrological models of the Brodarevo dams constructed at the Brodarski Institut d.o.o. in Zagreb (Croatia); measuring the performance of the design of the dams and related structures under both optimal and severe (flooding) energetic and hydraulic conditions to assess safety, environmental and economic considerations. The testwork, supervised by Energoprojekt and Tractebel Engineering S.A., generated various design improvements, notably for the river diversion and spillways, which will be incorporated into the final design.

Environmental studies in accordance with Serbian standards and legislation are being conducted in parallel with studies according to World Bank guidelines. Both sets of studies are being conducted by Energoprojekt and are on schedule for completion in October 2011.

The design, environmental studies and permitting for the sections of the M-21 road affected by the Brodarevo Project have been contracted to Put Inzenjering (“PUT”) of Podgorica (Montenegro). PUT has completed detailed surveys and design work and will be undertaking geotechnical drilling over the coming weeks.

Source: Marketwatch