12 Jun 2013 07:00
BERKELEY MINERAL RESOURCES PLC
("BMR" or the "Company")
Acquisition of copper processing plant
Berkeley Mineral Resources Plc, the AIM listed resource company engaged in the processing of tailings dumps in Zambia, has acquired a copper processing plant. The new plant will be located on the Company's site at Kabwe and will process tailings and other material sourced locally.
The copper tailings to be processed are discrete from those already controlled by the Company and referred to in the announcement dated 04 February 2013, which said that an Industrial Zone site had been secured to carry out BMR's copper processing programme at Ndola, northern Zambia. The Company intends to operate two sites and to commence the processing of the dumps acquired around Ndola in due course.
The plant acquired by BMR consists of a complete metallurgical leaching plant with milling, crushing, leaching and liquor-solid separation units. The plant is expected to produce copper cement which is intended initially to be sold to a SX-EW plant owned by a copper cathode producer in the vicinity of Kabwe. The plant, when equipped with an electro-winning tank and rectifier, can also produce copper cathode.
The Company has acquired a versatile facility which can process different copper ores, concentrates and tailings, sourced locally, and also cater for varied source copper material emanating from further afield.
The plant has an annual copper ore capacity of 29,200 tonnes at 2% Acid Soluble Copper but the plant can be expanded and production increased, as necessary. It will be operated by BMR's wholly owned Zambian subsidiary Enviro Processing Ltd and at full capacity is expected to employ up to 33 plant operatives.
BMR expects the plant to be installed and ready for commissioning to commence copper processing during the third quarter of 2013. Approximately £1m has been budgeted to cover the acquisition and commissioning costs.
Masoud Alikhani, Chairman, commented:
"By taking advantage of the opportunity to both acquire the plant, at a significant discount, and to source material local to Kabwe we have added flexibility to the business and most importantly, brought forward the timetable for the processing of copper tailings. The new plant signals further progress towards our stated objective of processing tailings in Zambia.
"As well as processing the lead and zinc dumps at Kabwe, the plans for which are on schedule, we will now also process copper tailings at Kabwe, which will further enhance profitability once operational."
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.
12 June 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
020 7894 7000
Lothbury Financial Services
Michael Padley / Gary Middleton
020 3440 7620