16 Apr 2012 07:00
BERKELEY MINERAL RESOURCES PLC
("BMR" or "THE COMPANY")
Up to 96% recoveries of Zinc and Lead material achieved from Kabwe Mine tailings
Further to the announcement made on 29 February, 2012 BMR has now received the initial results of the metallurgical processing tests being carried out by its consultants, Mintek. Mintek has been testing various routes to optimise zinc (Zn) and lead (Pb) recoveries from the washplant and leachplant tailings material prior to the Company selecting its preferred processing route which will form the basis of its beneficiation plant specification.
Although the Company conducted cyclone tests, kiln tests produced the most positive results. A total of eight kiln tests were conducted by Mintek from representative dump material (four each of washplant and leachplant material) submitted in December 2011. Tests were conducted at temperatures of 1,000, 1,150 and 1,200 degrees Centigrade. Dolomite was added to some of the tests to ascertain if that would increase recoveries.
The best results of the tests are as follows:
Washplant material: At 1,200 degrees C, 57.1% Zn and 83.7% Pb recovered
Leachplant material: At 1,200 degrees C, 62.7% Zn and 96.1% Pb recovered
Small quantities of other metals were also recovered, including Gallium and Germanium, both primarily used in semi-conductor production.
BMR is very satisfied by the extremely positive results of these initial kiln tests and will be carrying out further refined kiln testing, varying temperatures and additives such as dolomite and silicon to further improve and maximise recovery rates. The Directors believe that the ability to process both the washplant and leachplant material by the same process has strong operational and capital cost advantages. The final product from a kiln process is expected to be a combined Zn/Pb powder concentrate, which is deemed to be advantageous for sales and transportation to export markets.
Aggregated Resource Statement for the entire stockpile inventory at the Kabwe Mine
The Mineral Corporation has compiled an aggregate tonnage estimate for the waste material at the Kabwe Mine of approximately 6.4Mt at 5.48% Pb and 5.50% Zn content. This tonnage includes approximately 3.2Mt of JORC compliant Mineral Resources for the leachplant and washplant tailings (8.44% Pb and 5.08% Zn content) previously announced.
The current aggregate tonnage estimate for the waste dumps is considered by the Mineral Corporation to be materially lower than the historical estimate of approximately 8Mt compiled by the Zambian Consolidated Copper Mines ("ZCCM") in 1995. Different bulk density estimates is assessed by the Mineral Corporation to account for the variance in tonnage estimates. The estimates for the waste material (excluding the leachplant and washplant materials) do not conform to a recognised standard such as JORC and as such cannot be relied upon for economic assessment purposes.
The aggregate estimate for all the stockpiles at the Kabwe Mine, including the current waste material inventory, is set out in the table below:
Stockpile Type | Dry Tonnage | Grade % Zinc | Grade % Lead | Contained Tonnes of Metal- Zinc | Contained Tonnes of Metal-Lead |
Waelz Slag | 1,104,794 | 3.64 | 1.52 | 40,189 | 16,794 |
ISF Slag | 1,481,563 | 8.07 | 1.22 | 119,579 | 18,026 |
Mixed Leachplant | 249,690 | 6.71 | 10.17 | 16,760 | 25,393 |
Pyrite tailings | 333,508 | 4.86 | 5.66 | 16,208 | 18,877 |
Blue Powder | 1,914 | 14.10 | 7.34 | 270 | 141 |
Non-JORC total | 3,171,469 |
|
| 193,006 | 79,231 |
Washplant (JORC) | 573,458 | 10.66 | 7.21 | 61,147 | 41,345 |
Central Leach (JORC) | 2,648,920 | 3.88 | 8.71 | 102,690 | 230,810 |
Grand Total | 6,393,847 | 5.48 | 5.50 | 356,843 | 351,386 |
BMR is pleased to have established an inventory of resources contained within the stockpiles at the Kabwe Mine The Company now intends to progress with the pre-feasibility study from its preferred consultant Metanza.
Masoud Alikhani, Chairman, commented:
"Following BMR's consolidation of the ownership of the whole Kabwe site, we have obtained the Licences both for all the dump stockpiles and, as announced last week, all the underground ore bodies at Kabwe.
The finalised dump stockpiles resource estimate by the Mineral Corporation of 708,229 tonnes of contained lead and zinc metal, before processing, has a value at today's LME spot market prices of approximately US$1.4 billion. We are delighted with the laboratory production recovery rates that have been demonstrated from the kiln testing by our consultants; we expect that the initial tests, averaging 75% overall recovery, should be capable of further improvement prior to the commencement of production. We are now looking forward to receiving the feasibility study after further test work to speed the commencement of production and confirm our profit projections for the years ahead".
16 April 2012
This release has been reviewed by Dennis Human, B.Sc. (Hons), Bus. Admin (Hons), GSSA, 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