AAA.L Regulatory News (AAA)

9 Sep 2005 07:00

Adastra Minerals Inc09 September 2005 NEWS RELEASE Adastra Renews Kipushi Joint Venture with Kumba and Commissions a Technical andEconomic Reassessment Trading: TSX and AIM:AAA LONDON, U.K. (September 9, 2005) -- Adastra Minerals Inc. ("Adastra" or "theCompany") today announced that it has renewed its Joint Venture Agreement withKumba Base Metals ("Kumba") for the potential redevelopment of the Kipushi zinc/copper mine (the "Kipushi Project"). The Kipushi mine is located in the south of the Democratic Republic of Congo ("DRC"), 30 km south-west of Lubumbashi, adjacent to the Zambian border. Under theterms of the Joint Venture, Kumba, a wholly-owned subsidiary of Kumba ResourcesLimited, can earn a 50% shareholding in the Company's interest in the KipushiProject. In addition, a technical and economic reassessment of Kipushi is underway todetermine its potential commercial viability in current market conditions, toappraise the mine's physical condition, and to identify key areas for detailedinvestigation in a subsequent Feasibility Study and associated Environmental andSocial Impact Assessment. In addition to updating and re-evaluating previousstudies, the reassessment will consider a range of possible concentrate productsand evaluate the production of calcine and sulphuric acid. LQS International has been appointed to co-ordinate the technical aspects of thereassessment and SRK Consulting has been appointed to conduct an environmentaland social scan. The reassessment is expected be completed in early November. "Kipushi is a high grade zinc/copper resource that we are eager to bring tovalue," said Tim Read, President and CEO of Adastra. "We are delighted that thejoint venture with Kumba has been renewed. The economic reassessment will be akey step towards concluding detailed commercial arrangements with Kipushi'sowner, La Generale des Carrieres et des Mines ("Gecamines")." About the Kipushi Project The Kipushi mine is a world-class deposit, with a measured and indicatedresource of 16.9 million tonnes (measured: 8,932,231 tonnes; indicated:8,029,127 tonnes) at an average grade of 16.7% zinc (measured: 10.07% zinc;indicated: 24.21% zinc) and 2.32% copper (measured 2.53% copper; indicated:2.09% copper), as calculated by Gecamines and verified by Charles Carron Brownof Techpro Mining and Metallurgy, a "qualified person" as defined by theCanadian Securities Administrators' NI 43-101. The deposit is open along strikeand down dip. Zinc and copper were produced at the mine from 1925 to 1993, butproduction ceased because of a lack of foreign currency and operating supplies.Adastra has an exclusive option to submit a proposal for the redevelopment ofthe Kipushi zinc-copper mine. About Adastra Adastra Minerals is an international mining company listed on the Toronto StockExchange and on AIM, in London, under the symbol "AAA". It is currentlydeveloping several mineral assets in Central Africa, including the Kolwezicopper/cobalt project in the DRC. Adastra's growth strategy emphasises thecreation of shareholder value through the development of world-class resourcesin stable or stabilising political environments. About Kumba Kumba Resources Limited, one of the largest South African-based mining companieslisted on the Johannesburg Securities Exchange, is a focused metals and miningcompany with a diverse commodity portfolio consisting of iron ore, heavyminerals, coal, base metals and industrial minerals. Included in Kumba'sportfolio of assets is the large low cost Zincor refinery near Springs in SouthAfrica with a production capacity of some 120ktpa of refined Zinc. Kumba iscommitted to progressing the Kipushi project for the mutual benefit of allparties and, most importantly, the people of the DRC. Contact us: London Tim Read Justine Howarth / Cathy MalinsChief Executive Officer Parkgreen CommunicationsT: +44 (0)20 7355 3552 T: +44 (0)20 7493 3713F: +44 (0)20 7355 3554 F: +44 (0)20 7491 3936E: london@adastramin.com E: justine.howarth@parkgreenmedia.com South Africa Kumba ResourcesDoug TaylorActing General ManagerStrategy and Business DevelopmentT: +27 (12) 307 4012F: +27 (12) 307 4092E-mail: doug.taylor@kumbaresources.com North America Martti KangasThe Equicom GroupT: +1 416 815 0700 x. 243 +1 800 385 5451 (toll free)F: +1 416 815 0080E: mkangas@equicomgroup.com This News Release contains forward-looking statements within the meaning of theUnited States Private Securities Litigation Reform Act of 1995 concerning theCompany's plans for its principal properties in the Democratic Republic of Congo("DRC"). These forward-looking statements are subject to a variety of risks anduncertainties which could cause actual events or results to differ materiallyfrom those reflected in the forward-looking statements, including, withoutlimitation, risks and uncertainties relating to political risks involving theCompany's operations in the DRC and the policies of other nations andorganizations towards companies doing business in such jurisdictions, theinherent uncertainty of production and cost estimates and the potential forunexpected costs and expenses, commodity price fluctuations, the inability orfailure to obtain adequate financing on a timely basis and other risks anduncertainties, including those described in the Company's Annual Report on Form20-F for the year ended October 31, 2004 and Reports on Form 6-K filed with theSecurities and Exchange Commission. This information is provided by RNS The company news service from the London Stock Exchange