6 Nov 2012 07:00
BERKELEY MINERAL RESOURCES PLC
("BMR" or "the Company")
Further update on progress with Feilong
On 13 September 2012, Berkeley Mineral Resources, the metals processing company, updated shareholders on the initial reports of tests by Yunnan Xiangyun Feilong Nonferrous Metal Company ("Feilong") on the representative samples of the mine tailings the Company owns in Kabwe, Zambia. Feilong, with whom BMR has a Memorandum of Understanding ("MOU"), is carrying out the metallurgical and processing testing at its industrial complex in Yunnan Province, in the Peoples Republic of China ("PRC").
BMR recently conducted a further site visit to Feilong's PRC plant. Detailed technical discussions have reaffirmed that the lead and zinc combined average head-grade in the washplant samples is 17.5% and in the leachplant samples it is 12%.
In addition to the minor metals contained in the tailings (referred to in the announcement of 13 September), recent metallurgical testing has also quantified that 28% of the tailings material comprises iron.
To maximise recoveries and economic returns, Feilong foresee a three-stage process. First stage crushing and cyclone processes will remove the non-metallic material. Magnetic separation will then segregate the iron which will be extracted and sold in the form of an iron oxide powder (FeO) with a grade of some 60%, thereby adding to the commercial value of the tailings.
The final extraction process on the remaining metallic feed material containing the lead, zinc and minor metals will utilise the Waelz Kiln method which is expected to deliver recovery rates exceeding 90%. These processes are to be confirmed in a written report and flow sheet to be received by BMR from Feilong.
The additional processes have not yet been tested, but are deemed necessary in order to ensure that the beneficiation plant maximises the returns from the Kabwe tailings. In order to complete the testing phase, BMR is currently despatching two further representative one-tonne samples to Feilong, one each of washplant and leachplant tailings.
The entire beneficiation process would be waterless and the resultant products and tailings discharge would be of a dry nature. This is expected to have very positive environmental benefits, as well as being commercially beneficial as the waste could be used for construction purposes. No pollution to downstream water systems is therefore anticipated.
Masoud Alikhani, Chairman, commented:
"BMR is pleased with the progress Feilong are making to determine the optimal beneficiation plan for the substantial resources we have at Kabwe; BMR owns tailings stockpiles 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 washplant and central leachplant tailings. After the test work and feasibility study are completed, the next step will be for Feilong's representatives to visit Kabwe to enable them to carry out the appropriate plant design".
06th November 2012
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 7580
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 3440 7620