eEnergy Group Regulatory News (EAAS)

13 December 2017

Alexander Mining plc

("Alexander" or the "Company")

Business Update

Alexander is pleased to provide an update on its business development activities.

Australia - Accudo agreement

The Company has received an update from Accudo Metals Pty Ltd. ("Accudo") regarding its agreement with the owners of the copper tenements and assets in Australia ("the Project"). The Project is being assessed in accordance with the technology licence agreement with Alexander for the potential use of the Company's AmmLeach® technology.

Accudo's planned technical work is to progress from the first stage test work and complete a definitive feasibility study ("DFS") with a view to producing a bankable feasibility study ("BFS") if the DFS is positive. Work to date has demonstrated the successful extraction of copper under a range of AmmLeach® conditions and with recoveries (65%-80% unoptimised) comparable to acid leaching, albeit the latter processing method is uneconomic due to excessive sulphuric acid consumption.

To support the DFS, Accudo has selected the members of the feasibility study team, which includes hydrometallurgical and engineering, geology and mining, environmental, legal and corporate and financial advisors. In addition, significant size bulk samples of approximately 20 tonnes of ore and about 140 kg of quartered diamond drilling core have been sourced and transported to Perth, Western Australia for appropriate metallurgical and mineral processing test work.

Accudo has advised the Company that it is sufficiently encouraged by the technical work undertaken to date and its preliminary economic model, that it is currently seeking expressions of interest from strategic, industry and/or financial investors for funding to effect the acquisition of the Project assets. Its earlier intention was to decide on whether to acquire the Project once the DFS was completed. In the interim, the DFS work has been put on hold pending this further funding for the acquisition of the Project, completion of the DFS work and, if favourable, the commitment to complete a BFS.

Accudo has indicated that expressions of interest have been encouraging and several organisations are currently accessing the Project data room. 

HyperLeach®

The Company is investigating potential low-grade nickel/cobalt and copper sulphide leaching opportunities to advance the potential commercial adoption of its HyperLeach® intellectual property. The recent grant of the HyperLeach® patent in the US is supportive of this.

Lithium - research and development joint venture

Work on the lithium ore leaching joint venture between the Company and Dr Nicholas Welham is proceeding and, although there has been some time slippage due to the availability of laboratory facilities, the first results are expected soon.

Zambia

Further to the signing of an introducer's agreement with Duard Capital Ltd. ("Duard") announced on 16 August 2017, the Company has been working closely with Duard to investigate several opportunities. The focus is on copper and cobalt production opportunities, including from historic slag/tailings heaps, and has been supported by a recent visit to Zambia by the Company.

Large numbers of Zambians depend on the income from the small scale artisanal mining of copper ore outcrops. The ore is sold at a marked discount to contained metal value to a few processing plants. The Zambian government has voiced its desire to see an improved return to such miners but with limited success.

The biggest challenge is to overcome the cost of transporting small quantities of ore over long distances. Duard and Alexander believe that there is an opportunity for the AmmLeach® technology to address this problem by establishing several small-scale plants serving such copper mining regions.

Outside of the Duard agreement, Alexander remains in discussions with existing major producers around the potential for the use of its patented technologies to enhance both current production and expansion opportunities they have within their existing resource and reserve asset base.

Turkey

The Company continues to investigate, supported by several recent visits, several specific opportunities in Turkey for its technology on suitable copper and/or zinc projects.

Mongolia

The Company's agent, Dr. Jadambaa Temuujin, has been busy generating contacts with encouraging interest being shown.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. 

ENDS

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