Kemin Resources Regulatory News (KEM)

29 Jun 2006 07:03

GMA Resources PLC29 June 2006 28 June 2006 AIM: GMA GMA Resources Plc CONSTRUCTION UPDATE GMA Resources Plc ("GMA" or "the Company") is pleased to announce an update withregards to the construction of the Tirek / Amesmessa Gold Project ("Tirek /Amesmessa" or "the Project") in Algeria. GMA owns 52% of ENOR spa ("ENOR"), theAlgerian operating company for Tirek / Amesmessa, with the remainder owned bySonatrach, the Algerian state-owned oil and gas company. Major Equipment: All preparations for the delivery of the major equipment for Tirek / Amesmessaare well underway with orders currently in process. Equipment selection hasbeen made with a view to acquiring modular, mobile equipment which will givemine management the flexibility to relocate machinery to new areas of theProject at a low cost, in order to respond to new sources of mineable ore asthey are discovered. GMA has signed a comprehensive maintenance and service agreement withCaterpillar for the provision of this equipment. This contract will ensure thatsupplies and spares parts are offered to GMA at no cost for the period of oneyear, and will provide for two Caterpillar technicians to be on site on rotationfour weeks on and fours weeks off for a period of 24 months. It will alsoensure full training at the mine site of ENOR personnel on the operation of eachtype of equipment, as well as training of the ENOR mechanics on the maintenanceof the equipment going forward. Processing Plant: Summit Valley Equipment & Engineering Inc. of Utah, USA has been selected as asupplier of the carbon adsorption, carbon regeneration and acid wash systems, aswell as the electrowinning circuit and equipment for carbon handling and goldrefining, whilst Roc-Impact of France has been selected as a supplier for thecrushing and agglomeration equipment. Both companies have confirmed that theirequipment is expected to become available for shipping to Algeria in midNovember 2006. Assay Laboratory Unit Electrical Engineering Ltd of British Columbia, Canada will supply a fullyequipped modular assay laboratory, again with quoted availability for shippingin mid November 2006. Pipeline A pipeline will be built to supply process water from the Tanzerouft well,approximately 45 km from the existing Tirek Mine. The Tirek Mine is locatedsome 60km north of the Amesmessa site, which is in the extreme south of theexploitation permit area. The pipe will be supplied by AB Alvenius of Swedenand shipments from Alvenius' factory should begin in mid October, with the finalshipments to be made in mid December 2006. Tirek Mine - Ball Mill With regards to the expansion of gold production at the existing Tirek Mine, GMAis pushing ahead with the objective to more than double existing processingcapacity. A new ball mill for the Tirek Mine processing plant has beenpurchased from New Concepts Projects of South Africa. This is a 9ft x13ft,525kW ball mill purchased from an existing mine and will be completelyrefurbished. The ball mill is currently in Perth, Australia, where engineeringassessment is under way to evaluate the work required to bring the ball mill toa fully refurbished state. Delivery of this to site is expected in November2006. Douglas Perkins, CEO of GMA, commented: "As announced in our recent final results, ENOR Spa is now firmly inconstruction mode at Amesmessa and this update demonstrates that all aspects aremoving forward apace." Enquiries: Douglas PerkinsGMA Resources+44 (0)20 7253 7670 Grant ThorntonPhilip Secrett+44 (0)20 7383 5100 Parkgreen CommunicationsCathy Malins / Annabel Leather+44 (0)20 7493 3713 This information is provided by RNS The company news service from the London Stock Exchange