29 Feb 2012 07:00
BERKELEY MINERAL RESOURCES PLC
("BMR" or the "Company")
Kabwe Operational Update
Update on option to acquire remaining underground ore bodies at Kabwe
On 7 February 2012, BMR announced that it was making satisfactory progress in connection with acquiring the assets including the underground ore bodies at Kabwe, from Silverlining Ventures Ltd ("Silverlining") and Alberg Mining and Mineral Exploration Ltd ("Alberg").
BMR has now been informed that the authorisation for the transfer of the Large Scale Mining Licence by the Zambian Competition and Consumer Protection Council ("CCPC") and the Certification of the assignment of the title to the relevant surface rights for the Stands concerned by the Zambian Commissioner of Lands are now expected to be issued following the next meeting of the CCPC which is scheduled to be held in mid-March.
In the meantime, BMR's Zambian subsidiary Enviro Processing Limited has received an approval letter from the Environmental Council of Zambia ("ZEMA") approving the Company's plans for processing the dumps material at its site in Kabwe, subject to adhering to the appropriate laws of Zambia and commencing operations within three years from the approval.
Final stockpile resource statement
BMR is seeking to define a resource compliant statement on the leachplant and slags sections not previously reported on. SGS consultants expect all the assay analyses from the final holes drilled in these sections to be completed within the next week. The Mineral Corporation will commence work to issue a comprehensive JORC resource statement for all the stockpiles at Kabwe. The Directors believe that that this resource upgrade will be published by the end of March 2012.
The timelines for production of data from laboratories in Southern Africa are currently extended due to high demand from the increasing number of mining projects being undertaken globally.
Pre-feasibility study
Mineralogical and metallurgical testwork on the washplant and leachplant stockpile material supplied to Mintek consultants in December 2011 is proceeding to ascertain the best route for maximised recoveries.
International rail and sea-borne shipment rates are increasing. Revenues for concentrate sales are dependent on the grade and type of concentrates produced. BMR is therefore carefully examining all processing routes to optimise recoveries. Cyclone and Kiln tests are amongst those currently being carried out to evaluate their processing parameters and extraction capabilities.
When these tests are completed and all the technical data has been received, Metanza will be able to conclude the pre-feasibility study for processing the material at Kabwe and the Company will be in a position to order its beneficiation plant to produce lead and zinc concentrates.
Masoud Alikhani, Chairman, commented:
"We are looking forward with keen anticipation to receiving the finalised JORC statements of the above-ground ore resources at Kabwe, in the next month. At the same time, the conclusion of the processing evaluations will put us in a position to proceed swiftly with the establishment of our beneficiation plant and go into production as soon as possible".
This release has been reviewed by Dennis Human, B.Sc. (Hons), Bus. Admin (Hons), Consulting Geologist in accordance with the guidance note for Mining, Oil & Gas Companies issued by the London Stock Exchange in respect of AIM Companies.
29th February 2012
For further information please contact:
Berkeley Mineral Resources Plc
Masoud Alikhani, Chairman
020 7408 1181
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 7868 2010
Notes for Editors
BMR is a minerals company with a primary strategy of investing in tailings processing. By accessing above-ground dump deposits with known grades and metallurgy, it avoids exploration or mining costs, has a secure licence and fixed environmental criteria, and can produce concentrates according to viability at current market prices.
The Kabwe deposits, located approximately 110km north of the Zambian capital Lusaka, were discovered in 1902. From 1906, Kabwe was a significant mine. By the time it closed in 1994, due to depletion of the massive sulphide mineralisation and lowered metal prices, it had produced about 1.8m tonnes of zinc, 800,000t of lead,
7,800t of vanadium pentoxide and lesser quantities of cadmium, silver and copper. After closure, most of the mine complex was sold off on a piecemeal basis. BMR's overall strategy is to re-assemble the Kabwe dumps site into a single entity operating under a single Large Scale Mining Licence.
In May 2011 BMR signed a MOU with Ng'wena Mining Resources under which it could acquire 76% of the copper tailings from the former Roan Antelope mine at Luanshya, 145 km north of Kabwe.
In December 2011 BMR completed its due diligence for its options to acquire from Silverlining Ventures Limited and Alberg Mining Limited the remaining partly mined or unmined ore bodies and other assets at Kabwe. Completion of this acquisition is subject to the re-issue of the appropriate licence by the new Zambian government.
In December 2011 BMR signed an Option Agreement which has given BMR the exclusive right to carry out due diligence on substantial stockpiles of copper tailings located in the Chingola area in the north of Zambia, about 220km from Kabwe. The Option is in respect of stockpiles at three separate areas located within a 7km radius of each other.