Last checked at 23 Aug 2010 07:00
23 August 2010
Bezant Resources Plc
("Bezant" or the "Company")
Independent Scoping Study Commissioned
Bezant has awarded a contract to conduct a conceptual mining study on its Mankayan Copper Gold Project in the Philippines
Bezant (AIM: BZT), the AIM listed gold and copper exploration and development company operating in the Philippines and Tanzania, announces that a conceptual (technical and economic) study has been commissioned on its Mankayan Project located on the Island of Luzon, approximately 260km north of Manila in the Philippines. The study's scope will consider an underground mining operation with associated processing facilities and infrastructure. Key deliverables will include a recommendation as to the optimum mining rate, a preliminary implementation plan and a financial model. TWP Australia Pty Limited ("TWP") and Mining Plus Pty Limited ("Mining Plus"), have been contracted as independent consultants to conduct the study. TWP will be focussing on the infrastructure and surface facilities whilst Mining Plus will be working as a subcontractor to TWP, responsible for mine design and scheduling.
The study will consider all available data compiled on the Mankayan Project, which has a JORC compliant mineral resource of 221.6 million tonnes Indicated and 36.2 million tonnes Inferred at a 0.4% copper cut-off. This equates to an Indicated Resource of 2.42 billion pounds (1.1 million tonnes) of copper and 3.7 million ounces of gold, with a further Inferred Resource of 0.44 billion pounds (0.2 million tonnes) of copper and 600,000 ounces of gold. This resource and the current level of geological modelling of the ore bodies has justified the commencement of this preliminary technical and economic conceptual mining study, in order to assess the economic viability for a mine on the site. It is currently intended that the results of the study will be used to validate the further work required to initiate and complete a full pre-feasibility study.
The scope of the study aims to outline the following:
- a review of the resource model, geotechnical parameters and rock strengths, hydrological considerations, gas regimes, mine access and ventilation requirements;
- a review of environmental and cultural considerations;
- the approach and design considerations for a mineable resource model, mine production rate, the preferred mining method, ore / waste determination, mining limits and the overall mine layout;
- the design of a production sequence and schedule, review of mine equipment requirements and an estimate for the overburden and waste disposal parameters within an operations summary;
- conceptual estimate for the mine operations management, mine equipment operation and maintenance, schedule of mine operation activities and human resource complements;
- conceptual estimate of infrastructure requirements, mine capital expenditure and operational costs;
- the design of an implementation plan and financial model;
- high level risk management assessment; and
- identification of the design parameters for future studies.
The study is expected to be completed within the next four months and Bezant plans to utilise the independent report to form the basis for further more in-depth studies, which should lead to the eventual completion of a pre-feasibility study. The completed study is expected to contribute significantly to the Company's understanding of the economics associated with the deposit and the Company's current review process shall also consider, inter alia, the identification of potential commercial or joint venture partners to finance and develop the project through to future production, the possible divestment of all or part of the Company's interest in the project, or provide for further evaluation and development of the project to a more advanced stage by Bezant alone.
Gerry Nealon, Executive Chairman, commented:
"The results of our exploration, drilling, geotechnical and metallurgical studies to date have clearly demonstrated that the Company's Mankayan Project, adjacent to Lepanto Consolidated Mining Company's existing mining operations, is potentially capable of hosting a world-class copper/gold mine.
The addition of this conceptual study to the ongoing review process will assist us in identifying the most attractive route for taking the project forward and unlocking maximum shareholder value and we look forward to announcing the results of the study in due course."
Dr Bernard Oliver has reviewed and approved the technical information contained within this press release in his capacity as a competent person, as required under the AIM rules. Dr Olivier is a Member of the Australasian Institute of Mining and Metallurgy.
For further information, please contact:
Gerry Nealon
Executive Chairman, Bezant Resources Plc
Tel: +61 41 754 1873
Bernard Olivier
Executive Director, Bezant Resources Plc
Tel: +61 40 894 8182
James Harris / Matthew Chandler
Strand Hanson Limited
Tel: +44 (0)20 7409 3494
Alastair Stratton
Matrix Corporate Capital LLP
Tel: +44 (0)20 3206 7000
Laurence Read / Beth Harris
Threadneedle Communications (UK)
Email: Laurence.Read@threadneedlepr.co.uk
Tel: +44 (0)20 7653 9855
Mob: +44 (0)7979 955 923
or visit www.bezantresources.com
Notes for editors:
Mankayan Copper and Gold Project, Philippines
The Mineral and Production Sharing Agreement covers a total of 534 hectares in the Guinaoang area of the Philippines (the "Mankayan Project"). This is located in the Mankayan-Lepanto mining district, an area of porphyry copper belts in the Philippines and is similar to several deposits that have already been developed, such as the St Thomas deposit near Baguio City. The site is adjacent to the copper/gold mine owned and run by Lepanto Consolidated Mining Company. The Mankayan-Lepanto area has been mined for centuries and is readily accessible by both road and air. The Mankayan deposit was discovered in the early 1970s and since then has been extensively drilled, with four historical programmes having been completed covering more than 45,000 metres of diamond drilling over 48 holes. From late 2007 to mid 2009, Bezant completed a 9,778 metre drill programme over 9 holes along the full strike length of the deposit to expand and test the validity of the historical drilling results and to provide samples for density and metallurgical analysis. In July 2009, the Company announced an independent upgraded JORC compliant Mineral Resource, reported by Snowden Mining Industry Consultants Pty Limited, of 221.6 million tonnes Indicated and 36.2 million tonnes Inferred at a 0.4% copper cut-off, grading at 0.49% for copper and 0.52g/t for gold. The independent Resource estimate serves to support the Company's belief that its Mankayan Project represents a world-class copper and gold deposit, containing approximately 2.9 billion pounds (1.3 million tonnes) of copper and 4.3 million ounces of gold.
TWP
Founded in 1982, TWP has grown into a highly capable ISO 9001:2000 accredited multi-disciplinary resource and infrastructure focused project design house providing a full range of mining, process, energy, infrastructure and project management solutions. TWP commenced operations in Australia during 2006 as a subsidiary of TWP Holdings Limited, part of the Basil Read Group in South Africa. The company's project portfolio has a capital value of more than US$10 billion with offices located in Australia, South Africa, Zambia, Mozambique, Abu Dhabi and Peru (www.twpaustralia.com.au).
Mining Plus
Mining Plus is an innovative and practical consultancy company located in Perth, Melbourne and Kalgoorlie with affiliates overseas. It provides technical consulting services to Australian and International mining and exploration companies with experience of similar conceptual mining studies for a range of clients and commodities throughout the world (www.miningplus.com.au).
Glossary of technical terms:
| "Indicated Mineral Resource"
| That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.
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| "Inferred Mineral Resource" | That part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.
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| "JORC" | The Joint Ore Reserves Committee: The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, as published by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia. |