Kemin Resources Regulatory News (KEM)

10 Oct 2005 09:19

GMA Resources PLC10 October 2005 GMA RESOURCES Plc NEWS RELEASE For immediate release London, 10 October 2005 AMESMESSA GOLD PROJECT FEASIBILITY STUDY EXECUTIVE SUMMARY GMA Resources Plc (the "Company"), the gold mining company, has recentlyannounced the completion of the Amesmessa Gold Project Feasibility Study (the "Study"). The Study confirmed the technical and commercial viability of a newprocessing plant at Amesmessa, and several open cut mines at both Amesmessa andTirek. The Study was completed by GRD Minproc Ltd and their subcontractor RSGGlobal Pty Ltd (RSGG), the latter being responsible for geological modelling andmine planning, including the presentation of Resource and Reserve Statements ("Competent Person's" report in terms of the JORC Code). The Company holds a 52%, controlling interest in the Algerian based company,ENOR, the owner of the Tirek-Amesmessa Gold Project in the Sahara of southernAlgeria. The Amesmessa zone is located at the southern end of the 1,400 km2exploitation permit area, which covers an 80 kilometre mineralised corridorassociated with a major north-south deformation zone on which the Tirek andAmesmessa gold deposits are located. The Study considered a new 300,000 tpa processing plant at Amesmessa, andseveral large open pit mines at both Amesmessa (veins 8 & 9) and Tirek (veins II/III and XIV/XV), and this forms the Base Case in the Study. Mineral Resourcesestablished for the upper regions of the set of six veins studied by RSGGtotalled 924,000 oz, whilst Ore Reserves were 424,000 oz. In addition, theCompany initiated resource modelling and mine planning on nine other nearsurface veins at Amesmessa and two minor veins at Tirek. The additional pitinventory total was 216,000 oz. This additional pit inventory is based on ORGMC1 resources (using the classification system of the Russian State Committee forOre Reserves) for the selected veins, and preliminary pits have been designed toextract the majority of the selected C1 polygons, with an average depth ofgenerally less than 40m. The combined mine schedule of 640,000 oz, containing424,000 oz of Ore Reserves and 216,000 of C1 reserves, forms the basis of theGMA Development Case in the Study. PROJECT SUMMARY Key Performance Units Base Case Development Indicators Case Financial NPV US$m 3.4 50.6 IRR % 12 37 Av Cost* US$/oz 282 230 Operating Surplus US$m 71 139 Capital Plant & Infrastructure US$m 28.5 28.5 Mining** US$m 18.5 19.1 Physicals Mine Production Ounces Au 424,000 640,000 Gold Recovered Ounces Au 405,000 610,000 * Average cost includes pre-production mining costs ** Total mining capital for life of mine. Initial mining fleet capitalrequirement is US$17.5m for the Base Case and US$10.2m for the Development Case The Executive Summary of the Study is presented below. The Development Case ispresented in Section 1.17 of the Executive Summary. For further information onthe Study please consult the Company's website: gmaresources.plc.uk ENDS For further information contact:GMA Resources Tel: + 61 400 228 234Colin Ikin, Chief Executive 4C-Burvale Tel: + 44 (0)20 7907 4761Carina Corbett Website: www.gmaresources.plc.uk This information is provided by RNS The company news service from the London Stock Exchange