BHR.L Regulatory News (BHR)

5 Jun 2007 07:00

Carnegie Minerals plc05 June 2007 5 June 2007 Carnegie Minerals Plc ("Carnegie" or the "Company") Ore Reserve Statement for Niafarang deposit explored in southern Senegal Carnegie Minerals Plc (CME), the mineral sands resource company with productioninterests in The Gambia and advanced exploration in adjoining Senegal, ispleased to announce it has now received the independent ore reserve statementfor the recently drilled Niafarang deposit in southern Senegal. Highlights • Carnegie has obtained an independent Ore Reserve Statement for the first mineral sands deposit explored in southern Senegal • The Probable Ore Reserve contained within the Indicated Mineral Resource for the Niafarang deposit is 3.4 million tonnes of sand at an average grade of 16.0% total heavy minerals (THM) • The Niafarang ore reserve is classified in the Probable Ore Reserve Category as defined by the JORC Code 2004 • The Niafarang ore reserve effectively doubles the size of the developing mining operations in the Company's SeneGambia mineral sand project • Carnegie's exploration team continues test drilling of geophysical targets in southern Senegal As a percentage of the total heavy minerals, the economic mineral content is75.4% ilmenite, 13.6% zircon, 2.3% rutile and 0.4% non-magnetic leucoxene. Probable Ore Reserve Sand Grade Mineral Assemblage % of THM (MT) (% THM) Ilmenite Zircon Rutile Leucoxene 3.4 16.0 75.4 13.6 2.3 0.4 Carnegie's exploration team is currently undertaking an air-core test drillingprogramme of priority exploration areas identified by the high-resolutionairborne magnetic and radiometric survey carried out by the Company in late2006. Alan Hopkins, Managing Director of Carnegie commented: "We are very encouraged by this ore reserve statement, as the addition of theNiafarang reserves effectively doubles the mineable part of the resource of theSeneGambia project. Being only 4 kilometres from the southernmost part of ourGambian resource interests it is a welcome addition to the overall project. "With exploration drilling now underway over the new geophysical explorationtargets in the licence area in Senegal, we are rapidly moving to anunderstanding of the final scale of the whole project". - Ends - For further information, call: Alan Hopkins, Managing Director, Carnegie Minerals Plc 020 7831 3113Romil Patel / Olly Cairns, Blue Oar Securities Plc 020 7448 4400Billy Clegg/Edward Westropp, Financial Dynamics 020 7831 3113 Notes to editors: Carnegie only listed on AIM in August 2006. It has already brought into fullproduction three dredges and is on track to meet its 2007 production targets inThe Gambia. It has completed a high resolution airborne geophysical survey overthe Southern Senegal licence area, generating a number of targets for testdrilling, which are now being drilled. 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). PERTOLA Pty Ltd Consultant Mining Engineers 78 Wilson Street, Bassendean WA 6054 NIAFARANG HEAVY MINERAL DEPOSIT, SENEGAL ORE RESERVE STATEMENT The Niafarang Heavy Mineral Deposit, located in Senegal within the ExclusiveExploration Licence dated 26 November 2004, is held by Coast Resources Ltd, awholly owned subsidiary of Carnegie Minerals Plc. Mineral Resource Model Carnegie Minerals Plc provided the mineral resource model. The resource modelwas supplied as regular block model which was compiled by Micromine Pty Ltdunder the supervision of consulting geologist Mr. Michael Shepherd who providedthe resource statement as follows: "The Indicated Mineral Resource for the deposit, at a cut-off of 1% THM, is atotal of 4.8 million tonnes of sand at an average grade of 12.4% total heavyminerals. As a percentage of the total heavy minerals, the economic mineralcontent is 75.2% ilmenite, 13.7% zircon, 2.3% rutile and 0.4% non-magneticleucoxene. The average slimes content for the deposit is 2.2%." Indicated Mineral Resource Sand Grade Mineral Assemblage % of THM (MT) (% THM) Ilmenite Zircon Rutile Leucoxene 4.80 12.4 75.2 13.7 2.3 0.4 Ore Reserve Estimation Estimation of the Niafarang ore reserve has been based on mining methods, miningore loss, mining dilution, mineral recovery factors, cost assumptions andproduct revenue rates currently in use for Carnegie's existing mining operationsin The Gambia. Where necessary, costs have been modified to reflect theincreased trucking distance for HMC and variations in government royaltypayments. It has been assumed mining will be undertaken using a number of small dredgingunits with the heavy mineral concentrate being trucked to a Concentrate UpgradePlant located in The Gambia. Processed magnetic and non-magnetic concentratesare then shipped to China via the port of Banjul. The Probable Ore Reserve contained within the Indicated Mineral Resource for theNiafarang deposit is 3.4 million tonnes of sand at an average grade of 16.0%total heavy minerals. As a percentage of the total heavy minerals, the economicmineral content is 75.4% ilmenite, 13.6% zircon, 2.3% rutile and 0.4%non-magnetic leucoxene. Probable Ore Reserve Sand Grade Mineral Assemblage % of THM (MT) (% THM) Ilmenite Zircon Rutile Leucoxene 3.4 16.0 75.4 13.6 2.3 0.4 Ore reserve calculations qualify as "Probable" as defined by the 2004 Edition ofthe "Australasian Code for Reporting of Exploration Results, Mineral Resourcesand Ore Reserves" (The JORC Code 2004). Competent Person The description of the Niafarang Ore Reserve is based on information compiled byDavid Merkley who is a Member of the Australasian Institute of Mining andMetallurgy, and is Principal of Pertola Pty Ltd, Consultant Mining Engineers.David Merkley has sufficient experience which is relevant to the style ofmineralisation and type of deposit under consideration and to the activity whichhe is undertaking, to qualify as a Competent Person as defined in the JORC Code2004. David Merkley consents to the inclusion in the Report of the matters basedon information in the form and context in which it appears. Pertola Pty Ltd Friday, 1st June 2007. Glossary of terms "Heavy a term given to minerals that have a specific gravity above 2.9minerals" or gm per cc"HM""Ilmenite" a black or dark brown iron and titanium oxide mineral which is a major source of titanium"Leucoxene" a fine granular alteration product of titanium minerals"Rutile" a yellow, red or brown titanium oxide mineral which is a major source of titanium"THM" total heavy material"Zircon" zirconium silicate, a colourless, brown or grey zirconium silicate mineral which is a major source of zirconium This information is provided by RNS The company news service from the London Stock Exchange