14 Jul 2011 07:00
BERKELEY MINERAL RESOURCES PLC
("BMR" or "The Company")
OPTIONS TO ACQUIRE FURTHER ASSETS AT KABWE EXERCISED
Berkeley Mineral Resources Plc, which is primarily engaged in processing mining tailings, announced on 22 June 2011 the completion of its purchase of all the above-ground stockpiles of zinc and lead tailings at the former Kabwe mine in Zambia. The Company can confirm that a JORC compliant resource definition for the entire tailings resource at Kabwe is on schedule to be published by the Mineral Corporation prior to 31 July 2011.
In order to secure and optimise the long-term future of its tailings treatment business, BMR has now exercised the options it has with two Zambian-registered companies, Silverlining Ventures Limited ("Silverlining") and Alberg Mining Limited ("Alberg"). Following the exercise of each option, BMR will now proceed to carry out due diligence prior to completing Agreements to acquire these additional assets. BMR will retain exclusivity to purchase the assets and mining rights described below, during a 60-day due diligence period commencing on 16 July 2011.
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.
Following the closure of the Kabwe mine in 1994, the Zambian state mining company, Zambia Consolidated Copper Mines Ltd ("ZCCM") issued an Ore Reserve Statement as at 31 March 1995 which has been subsequently reviewed by consultants. In all, these ore bodies are historically estimated to contain in excess of 22 million tons comprising some 1.2 million tons of zinc, lead, silver, cadmium and other valuable metals. All historic estimates are not JORC compliant and have not been verified at this time and therefore cannot be relied upon.
The transfer of the existing Large Scale Mining Licence necessary to exploit these ore bodies from ZCCM to Alberg has been approved by the Director of Mines, Zambia.
Masoud Alikhani, Chairman, commented:
"The exercise of the options gives BMR the potential to consolidate a substantial part of the Kabwe site. The acquisition of the underground ore bodies, together with the large scale licence to exploit them, will further strengthen our position. We can now focus on generating cash flow and maximising profitability."
14th July 2011
Contacts:
Masoud Alikhani, Chairman, Berkeley Mineral Resources 020 7408 1181
Jonathan Wright / Stewart Dickson, Seymour Pierce 020 7107 8000
Michael Padley / Gary Middleton, Lothbury Financial Services 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. Berkeley's project is part of an overall plan to re-assemble the Kabwe dumps site into a single entity operating under a single Large Scale Mining Licence.
BMR has 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. The Roan Antelope deposit was discovered in 1902 by prospector William Collier who shot a buck which fell onto an outcrop of almost pure copper. It has mined copper since 1911 and the extensive tailings are all within 4km of the original mine.
For further information please see the Company's website at http://www.bmrplc.com