Kemin Resources Regulatory News (KEM)

20 Jul 2007 07:00

GMA Resources PLC20 July 2007 20 June 2007 AIM: GMA GMA Resources Plc ("GMA" or "the Company") CONSTRUCTION UPDATE AND REORGANISATION OF SONATRACH PARTICIPATION GMA Resources plc (AIM: GMA), today announces an update of construction progressat Amesmessa in Algeria. • All mining equipment was delivered in March 2007.• Heap leach liner was fully installed by end of May.• Mobile crusher assembly is 50% complete.• Concrete construction is 85% complete.• Carbon plant and gold refinery assembly is in progress.• Tanzerouft pipeline is 70% complete, storage tanks are built.• Base camp assembly is 65% completed and living quarters are commissioned. Schedule • Operations have been temporarily suspended at Tirek plant allowing resources to be fully deployed to Amesmessa.• Stacking of leach pad will commence in October (from existing 125,000 tonne ROM stockpile).• Start-up of water pipeline in October.• Carbon plant, gold refinery and crushing plant will be complete in October.• First loading of gold on carbon in mid December. GMA has been advised by its joint venture partner Sonatrach that they will becentralizing all mining ventures they participate in, under one division withinthe Sonatrach structure, Sonatrach AVAL (Downstream Activities). Sonatrach isdoing this to more efficiently address the rapidly growing needs of the miningindustry in Algeria. This has resulted in liberation of trapped funds fromSonatrach for the Amesmessa project. Douglas Perkins, CEO of GMA, commented; "We are very pleased to be able toannounce the continuing progress on the Amesmessa project. There have beendelays both inside and outside Algeria and the increase in the Company's levelsof activity have resulted in both an increase of capital costs and delays indelivery. We are encouraged by the strategies undertaken by Sonatrach inachieving our mutual objective and look forward to the further development ofthe Amesmessa project." About GMA Resources: GMA owns a controlling 52% stake in ENOR spa, the Algerian based operatingcompany for the Tirek-Amesmessa project, with the remainder owned by Sonatrach,the Algerian state-owned oil and gas company - a strong ally in Algeria. ENOR holds the exploration permit to the Tirek-Amesmessa property, an area ofsome 1,417 km2, located approximately 450km south west Tamanrasset, in southernAlgeria. The Tirek gold mine is located centrally in the northern third of theexploration permit area, some 60 km north of Amesmessa, which is in the extremesouth of the permit area. The Zita area, which lies between Tirek and Amesmessa,also shows considerable potential for development of prospects amenable toopen-pit mining. GMA plans to quickly expand upon resources outside of the major80km Tirek-Amesmessa fault north/south of the concession. GMA's shares are traded on the AIM market of the London Stock Exchange. GMAcurrently has 354,418,493 ordinary shares in issue. For further information on the Company, please visit the GMA website atwww.gmaresources.co.uk Enquiries: GMA Resources Plc Douglas Perkins +1 514 806 6788 Grant Thornton Philip Secrett / Fiona Owen +44 (0) 870 991 2318 ParkgreenCommunications Louise Goodeve / Justine Howarth +44 (0) 20 7851 7480 This information is provided by RNS The company news service from the London Stock Exchange