BHR.L Regulatory News (BHR)

30 Oct 2007 07:01

Carnegie Minerals plc30 October 2007 30 October 2007 Carnegie Minerals Plc ("Carnegie" or "the Company") Senegal licence renewal and update Highlights • Senegal exclusive exploration licence renewed for three years • First steps taken to convert portion of licence to mining title The Directors are pleased to advise that the Minister of Mines and Energy hasapproved the renewal of the Company's exploration licence in Southern Senegalfor a further three years. Carnegie, the mineral sands resource company with production interests in TheGambia and advanced exploration in adjoining Senegal, has received confirmationthat its renewal of the exclusive exploration licence for southern Senegal hasbeen approved. In accordance with Senegalese mining legislation, Carnegiesurrendered some already explored areas amounting to approx. 27% of the originallicence area and retained approx. 550 km2 for further exploration. Carnegieproposed an exploration programme and budget of US$1 million, allocated mostlyfor follow up drilling at some already identified mineralisation areas as wellas drill testing of yet untested exploration targets in Southern Senegal. As part of the immediate work programme, the Company intends to convert aportion of the exploration licence into a mining title over the Niafarangdeposit where it has already estimated a Probable Ore Reserve as defined by theJORC Code 2004. Carnegie negotiated the licence conversion procedures with theSenegalese Department of Mines and Geology in September 2007 and hascommissioned an independent and reputable Senegalese consulting firm for thestatutory environmental impact assessment (EIA) of the Niafarang mining projectas the first step in the licence conversion process. Subject to the timely statutory approvals and equipment procurement, the Companyplans to bring the Niafarang deposit into production in early 2009. Carnegie Managing Director Alan Hopkins said: "The renewal of the exploration licence provides a solid platform for theCompany's planned follow up drilling of the recently announced positiveexploration results from this area. The commissioning of the EIA consultant isthe first step in bringing the recently explored new deposit at Niafarang intoproduction and continues the progress being made to incrementally increase thisproject's scale and mine life." - Ends - For further information, call: Alan Hopkins, Managing Director, Carnegie Minerals Plc 020 7831 3113Romil Patel / Olly Cairns, Blue Oar Securities Plc 020 7448 4400 / +61 8 6430 1631Billy Clegg /Edward Westropp, Financial Dynamics 020 7831 3113 Notes to editors: Carnegie listed on AIM in August 2006. It has already brought into productionfour dredges and is on track to meet its 2007 production targets in The Gambia.It has drilled a deposit at Niafarang in Senegal and announced a mining reserve.It has also completed a high resolution airborne geophysical survey over theSouthern Senegal licence area, generating a number of new exploration targets.The drilling of the first of these targets is now being reported on as they cometo hand, with early results resulting in new mineralised areas with largeintersections. All exploration in Senegal is 50% co funded by Astron Ltd (the largestindependent buyer of zircon in China), with the emerging production in TheGambia fully funded by Astron Ltd (a 50% partner in each project). This information is provided by RNS The company news service from the London Stock Exchange