14 Dec 2011 07:00
BERKELEY MINERAL RESOURCES PLC
("BMR" or the "Company")
Update on the Options to acquire remaining assets at Kabwe
Following the announcement made on 14 July 2011, BMR can now report that, after the exercise of options, the due diligence in connection with the acquisition of Silverlining Ventures Limited ("Silverlining") and Alberg Mining Ltd ("Alberg") is now complete.
Silverlining owns stands 5203, 5209 and the remainder of stand 5203 in the Industrial Township of Kabwe. These stands are located opposite BMR's stockpiles site (stand 5187) and contain an historic crushing, screening and flotation plant, including refurbished thickener dams, new flotation cells, a power sub-station, water supply, railway sidings and an extensive furnished and IT-connected office block. This infrastructure is capable of being overhauled to provide the site beneficiation plant necessary to process the Kabwe stockpiles. The precise process is currently being evaluated by Metanza.
Alberg owns the mining rights to 703 hectares at Kabwe which contain all the residual partly mined or un-mined underground ore bodies remaining at the former Kabwe mine, together with existing shafts and other infrastructure.
Previously the Company has announced that the Zambian state mining company, Zambia Consolidated Copper Mines Ltd ("ZCCM") estimated the Alberg underground ores to be in excess of 22 million tonnes ("Mt"). However, detailed examination of the ZCCM Closure Resource Statement has concluded that the total remaining inferred Alberg underground resource stands at 23.4Mt at an average grade of 5.20% Lead (Pb)/Zinc (Zn). Included in the total is an inferred sulphide ore resource of 1.0Mt at 15.74% Zn and 2.45% Pb outlined around the historic No. 1, 3/4 and 5/6 ore bodies and an inferred ore resource of 0.91Mt at 15.27% Zn and 1.53% Pb at the No. 2 ore body.
A detailed table of these resources is documented on the BMR website at: http://www.bmrplc.com/projects/resources.
The transfer of the relevant mining licences to BMR's wholly owned Zambian subsidiary, Enviro Processing Ltd, has been delayed following the change of government in the recent national Zambian elections but is expected shortly.
Importance of by-products in existing ore bodies
As part of its due diligence on the 703 hectares at Kabwe which contain all the residual partly mined or un-mined underground ore bodies rights optioned from Alberg Mining Ltd ("Alberg"), BMR has commissioned an Independent Report from Dr Arthur J Warden PhD, C Eng, FGS, FIMMM, Honorary Lecturer at the University of Dundee.
Dr Warden's report confirms that historic production at the Kabwe mine during operations between 1904 and 1994 records an output of 1.8 Mt of zinc and 0.8 Mt of lead. However, as by-products, the mine historically also produced 7,820 tonnes of vanadium, 235 tonnes of cadmium, 79 tonnes of silver and 64 tonnes of copper.
In addition to the major deposits of zinc and lead, Dr Warden's report concludes that "once access to the underground resources is obtained then the minor metals may prove to be a significant bonus to any new production. Historic values for Silver are quoted as 1.5oz (ca 45-50 g/t) and other minor metals such as Vanadium, Cadmium, Germanium, Rare Earths, Copper, Gallium and Indium are all known to exist and may be now economic to recover".
All historic underground estimates are not JORC compliant and have not been verified at this time and therefore cannot be relied upon for economic assessment purposes.
Corporate Relations
As part of its Corporate Relations activity, BMR part-sponsored the Country Factor Zambian Investment Forum at London's Mayfair Hotel on 9 December. At this Forum, the newly appointed Minister of Mines and Natural Resources, Wilbur Simusa, outlined the prime importance of mining to the Zambian economy and the country's plans to substantially encourage investment in the sector.
Masoud Alikhani, Chairman, commented:
"The final exercise of the options will give BMR the potential to consolidate a substantial part of the Kabwe site, including the section where we intend to site our beneficiation plant. The acquisition of the underground ore bodies, together with the large scale licence to exploit them, will further strengthen our position and gives us the prospect of additional profitability through the processing of the minor metals content".
14 December 2011
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.
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