23 Dec 2013 07:00
BERKELEY MINERAL RESOURCES PLC
("BMR" or the "Company")
AGM Statement
At today's Annual General Meeting Masoud Alikhani, Chairman of Berkeley Mineral Resources Plc, the AIM listed resource company engaged in processing mining tailings in Zambia, will make the following comments:
"I am delighted to report to shareholders, following another successful year for our Company, an outline of our strategy and plans for the year ahead.
Amid the gloom that has descended on both larger and junior companies worldwide in the resources sector in the last 12 months, I believe that Berkeley Mineral Resources has been one of the more resilient participants.
The strengths underlying our business are the type and the value of the mineral assets we own and their location. The LME prices for zinc, lead and copper over varying time periods can always be found on the BMR website, and it is remarkable how stable they have remained over the last five years, at around US$2,000 a tonne for both zinc and lead.
These resources are all in Zambia, a member of the Commonwealth of Nations, acknowledged to be a desirable mining-friendly jurisdiction in which to do business and one in which BMR is happy to be involved.
Last week we announced the completion of our copper cementation plant at Kabwe and final testing is now underway. Supplies of suitable copper material for processing have been sourced and are ready to be stockpiled.
Regarding zinc and lead, we have secured the surface rights, the tailings, and the underground resources at Kabwe in Zambia. Our wholly owned subsidiary, Enviro Processing Ltd, has the licences we need. Throughout 2013 we have therefore been concentrating on making the large strides we need to reach the processing stage.
We chose our highest metal content lead and zinc tailings, the half a million tonnes of Washplant tailings, and appointed professional metal engineering consultants to advise us on the best processing route. We have commissioned and received the project's Definitive Feasibility Study which shows the Washplant tailings gravity stage alone will produce a net pre-tax cash flow of US$27 million in just three and half years once production commences. It also gives an IRR of 197% and full capital payback in just 10 months.
After processing the Washplant tailings, we will go on to treat the remaining zinc and lead Leachplant tailings resources, all 6.4 million tonnes of them. There is also potential to exploit the underground resources.
Following receipt of the feasibility study in August, BMR's final zinc and lead achievement in 2013 was to submit its full Environmental and Social Impact Assessment as required by the Zambian authorities. As soon as this is approved, expected in early 2014, we can assemble the plant and begin processing our assets.
In conclusion, we now have the first plant built at Kabwe and ready to start production with the copper sulphide and lead and zinc processing at Kabwe expected to commence in 2014."
This release has been reviewed by Dennis Human, B.Sc. (Hons), Bus. Admin (Hons), MGSSA, Consulting Geologist to the Company, who is a Qualified Person in accordance with the guidance note for Mining, Oil & Gas Companies issued by the London Stock Exchange in respect of AIM Companies.
23 December 2013
For further information please contact:
Berkeley Mineral Resources Plc
Masoud Alikhani, Chairman
020 7408 1181
Cantor Fitzgerald Europe
Stewart Dickson / Julian Erleigh (Corporate Finance)
Jeremy Stephenson (Corporate Broking)
Tel: 020 7894 7000
Lothbury Financial Services
Michael Padley / Gary Middleton
020 3440 7620
For further information please see the Company's website at http://www.bmrplc.com
The Directors of Berkeley Mineral Resources accept responsibility for this announcement.