17 Aug 2012 07:00
BERKELEY MINERAL RESOURCES PLC
("BMR" or the "Company")
Final acquisition of Mining Assets at Kabwe completed
Remaining surface rights secured
Underground mine assigned
Berkeley Mineral Resources Plc, the AIM-listed metals processing company, announces that following the exercising of Options (announced 14 July 2011), completion of due diligence (announced 14 December 2011), receipt of government approval (announced 3 April 2012) and the transfer of the Large Scale Licence 6990-HQ-LML (announced 2 May 2012), it has now completed the acquisition of all the remaining surface rights at the Kabwe mine site by way of an Assignment of all the interests of Alberg Mining and Minerals Exploration Ltd ("Alberg").
The Assignment includes the land and surface rights formerly owned by Silverlining Ltd which includes the offices, former beneficiation plant, electrical transformer and other assets and access to the adjacent international railway sidings at Kabwe.
The Assignment is to Enviro Processing Ltd and Enviro Props Ltd, both wholly-owned Zambian registered subsidiaries of BMR. The surface rights in the mining licence area were under the control of Alberg, and are now formally assigned to Enviro Props Ltd. In addition, Alberg has also assigned to BMR all intellectual property rights limited to geological, metallurgical and mining, survey reports, mapping data and assessments pertaining to the Kabwe Zinc-Lead Mine. Infrastructure on the land assigned includes two mining shafts, head frames, offices and buildings and former mining equipment and machinery.
Alberg has received a letter of consent to the assignment from the Zambian parastatal mining company ZCCM Investments Holdings Plc ("ZCCM-IH") and a letter of approval from the Zambian Director of Mines. The land area subject to Large Scale Licence 6990-HQ-LML has been amended, at the Company's request, and is currently being pegged by the Zambian authorities in confirmation.
Importantly, it is confirmed in the Assignment that ZCCM-IH has indemnified Alberg against all claims and financial obligations in respect of existing environmental and rehabilitation obligations pertaining to the Licence area. BMR is thus only responsible for any environmental obligations arising from its future activities on the site.
From estimates carried out by The Mineral Corporation, BMR already owns tailings stockpiles at Kabwe containing 6.4 million dry tonnes at 5.48% Pb and 5.50% Zn content. This tonnage includes approximately 3.2Mt of JORC compliant Measured Mineral Resources for the leachplant and washplant tailings (8.44% Pb and 5.08% Zn content).
Following the Assignment it now also owns underground ore bodies containing an estimated 51 million tonnes at a combined grade of 4.01%. These estimates for the underground ore bodies do not conform to a recognised standard such as JORC and as such cannot be relied upon for economic assessment purposes.
Beneficiation
The MOU signed with the leading Chinese zinc and lead processing company Yunnan Xiangyun Feilong Nonferrous Metal Company ("Feilong") is proceeding well. Bulk samples of typical Kabwe stockpile material and extensive technical information have been received by Feilong in the PRC and testing of beneficiation alternatives to process lead, zinc and other metals is now being carried out.
Masoud Alikhani, Chairman, commented:
"With the acquisition of the surface rights, all the assets and the licence at Kabwe, BMR has succeeded in its strategy of consolidating its position. We now enter a new era in which we can harness the infrastructure and the mineral assets to restore the importance of the former Kabwe mine to global metals supplies.
"Having consolidated the site at Kabwe, BMR's future mining intentions are aimed at continuing to enhance its local reputation, reduce pollution and strongly contribute to advancements in health and employment in central Zambia".
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 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