24 Oct 2012 07:00
BERKELEY MINERAL RESOURCES PLC
("BMR" or "the Company")
Initiation of pilot copper processing programme at Ndola
Berkeley Mineral Resources, the AIM-listed metals processing company, is pleased to announce that it has begun a pilot programme to produce copper cathode from tailings stockpiles located at the former Bwana Mkubwa mine, Ndola, Copperbelt Province, Northern Zambia. The Directors believe that the Company's first cash flow should be generated from this project in the third quarter of 2013.
On 10 August 2012, BMR announced that it had concluded its due diligence on further substantial copper tailings clusters identified in the Ndola area in northern Zambia and that Joint Venture negotiations were proceeding.
BMR has become interested in a 75% shareholding in Ndola Mineral Resources Limited ("NMR"), a newly registered Zambian company, which is in the process of taking transfer of a Prospecting Permit/ Small Scale Mining Licence held by Phoenix Materials Limited ("Phoenix"). Phoenix will hold a 25% free carry shareholding in NMR. The cash consideration payable by BMR to Phoenix is US$300,000. Phoenix currently has a small scale Prospecting Permit but has applied for a Small Scale Licence which will be assigned to NMR when received.
The Company has also concluded a Joint Venture Agreement ("JVA") with the Bwana Mkubwa Consortium, whose members are the licencees of five Artisanal licences. These licence areas are all located within the former Bwana Mkubwa Mine Site. BMR is pleased to have secured the JVA as it will secure the employment of local Zambians who have significant knowledge and experience of the site.
Following due diligence by BMR's consultants, it is estimated that the stockpiles concerned, located at the former Bwana Mkubwa mine, contain some 4-5 million tonnes of mineralised waste, ore and tailings dumps. Analysis indicates that copper grades vary between 0.3% and 1.00%. BMR does not intend to carry out further work to delineate a resource statement to an internationally recognised standard and these estimates therefore cannot be relied upon for economic assessment purposes. However, the Company intends to process enough mineralised material from the dumps to provide an output of 150 tonnes of copper metal per month.
In order to carry out the processing, BMR is in the process of securing an Industrial Zone plot. This is the site of a former copper production plant, located within a kilometre of the tailings stockpiles concerned, with all necessary services and infrastructure in place. The purchase for the site is expected to be approximately US$ 400,000.
An order is to be placed forthwith for a SX-EW copper extraction beneficiation plant to be erected there. The proposed plant is designed as a pilot plant with a production capacity of 150 tonnes a month of high grade copper cathodes.
Masoud Alikhani, Chairman, commented:
"As at Kabwe, BMR has secured another valuable resource in Ndola which is also above ground. The Company is making the transformation from being an acquirer of resources to becoming a producer of metals. Whilst the initial 150 tonnes-a-month programme at Bwana Mkubwa is expected to bring revenues of some US$1.2m per month at current LME copper prices, BMR is continuing negotiations to source further substantial copper stockpiles in Northern Zambia".
24th October 2012
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.
For further information please contact:
Berkeley Mineral Resources Plc
Masoud Alikhani, Chairman
020 7409 1042
Seymour Pierce
Stewart Dickson / Jonathan Wright (Corporate Finance)
Jeremy Stephenson / Richard Redmayne (Corporate Broking)
020 7107 8000
Lothbury Financial Services
Michael Padley /Gary Middleton
020 3440 7620