11 Nov 2013 07:00
BERKELEY MINERAL RESOURCES PLC
("BMR" or the "Company")
Kabwe Production Update
Berkeley Mineral Resources Plc, primarily engaged in processing mining tailings in Zambia, is pleased to provide a review of progress towards the start up of processing operations in Kabwe, central Zambia. Operations in Zambia are conducted by its 100% owned Zambian subsidiary Enviro Processing Ltd ("EPL").
Copper processing
· Initial production to be copper oxide cement
· Budgeted annual operating profit of approximately US$3m per annum from processing copper oxides
· Operations Manager appointed
Based on internal management analysis, the Directors of BMR provide the following guidance on expected copper processing at Kabwe.
The Environmental Project Brief ("EPB") approval is expected to be received within a two-month period from the Zambian Environmental Management Agency ("ZEMA"). After commissioning of the oxide copper cement plant, the input rate of processing the copper feedstock material is expected to be at an initial rate of 1,000 tonnes per month before ramping up to the full capacity of the plant of 3,000 tonnes per month over an estimated six month period.
At this rate, copper cement volumes of between 100 tonnes and 120 tonnes per month at an expected grade of 94% will be produced, providing an operating profit of approximately US$250,000 per month.
Sources of copper oxide ore in the surrounding area have been visited and supply contracts are under negotiation. The first ores selected by EPL have been assayed and verified and are ready to be stockpiled on site.
In parallel with securing oxide ores for leaching through its cementation plant, EPL has also identified a supply of sulphide material from local nearby sources which is being metallurgically tested in a pilot plant this month.
By utilising both sulphide and oxide ores EPL's Kabwe facility will have a multi-process beneficiation able to capitalise on diverse sources of copper available in the region.
Despite the onset of the Zambian rainy season, the copper cementation plant site has been cleared and fenced, plant construction is proceeding and the Company has arranged the connection of an enhanced 500KVA electrical transformer with the state electricity company ZESCO. Existing buildings are being converted to provide a laboratory for assay verification of incoming ores, consumables and maintenance stores, and further offices.
Operations Manager Appointed
BMR foresees that copper processing at Kabwe will become a substantial contributor to the profitability of its operations in Zambia and has appointed Dr Neil Rowley as Copper Operations Manager. Previously BMR's Business Development manager based in northern Zambia, Dr Rowley is 49 and has over 10 years practical experience in artisanal and small scale mining as well as metals and mineral trading in both the Democratic Republic of Congo and the Zambian Copperbelt. He has moved to Kabwe and is now based there, reporting to BMR's Africa Manager, Dennis Human.
Lead and zinc processing
BMR announced its receipt of the Definitive Feasibility Study ("DFS") for processing the Washplant tailings on 9 September 2013. It is now awaiting clearance of its Environmental and Social Impact Assessment ("ESIA") for BMR's proposed Washplant tailings and Leachplant processing facility in Kabwe from ZEMA.
The first stage, the Terms of Reference report ("TOR") has been completed by EPL's consultants and submitted and accepted by ZEMA. A first public meeting has been successfully held and a second report-back meeting on the base-line studies will be conducted in the next week, following which EPL will submit its final ESIA documentation during the week ending 19 November 2013
In the meantime, EPL has continued completing site-works for its plant and is carrying out pilot testing of the gravity processing systems to ensure the metal recoveries specified in the DFS will be maximised.
Masoud Alikhani, Chairman, commented:
"The initial copper cement plant is expected to be operational within the next two to three months with production increasing quickly to some 120 tonnes per month which will provide BMR with its first cash-flow. Once this is operational we will look to add the value of processing of sulphide material.
"Our detailed budgets show annual operating profit at the full plant capacity of the copper cement processing plant of over US$3million from the oxide material alone. Our rapid entrance into copper production represents a transformational step for the business."
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.
11 November 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 (Corporate Broking)
Tel: 020 7894 7000
Lothbury Financial Services
Michael Padley / Gary Middleton
020 3440 7620
For further information please see the Company's website at http://www.bmrplc.com
The Directors of Berkeley Mineral Resources accept responsibility for this announcement.