29 Jan 2014 07:00
China Africa Resources plc("China Africa Resources" or the "Company")
Update on Feasibility Study
China Africa Resources plc today announces a timing update on the publication of the Pre-Feasibility Study for the Berg Aukas Mine.
· The company had previously announced that provided the results continue to be positive it was expected that the feasibility study will be finalised by the end of 2013.
· The Company now supplies an update stating a slight delay in the publication of the results from the feasibility study due to the fact that the company is gathering additional commercial information which is taking longer than expected.
· The company expects to publish the full Pre-Feasibility study results during Q1 2014.
Background Information on the Berg Aukas Mine
The Berg Aukas underground mine previously operated from 1958 to 1978. The first shaft was established in 1958 with a second shaft sunk in 1968. From 1967 to 1978 it is reported that 2.3 million tonnes of material @ 15.0% zinc, 3.9% lead and 0.85% V2O5 were hoisted from the mine, of this 1.5 million tonnes of ore at 21.5% Zn, 5.5%Pb and 1.23% V2O5 was milled.
The mine closed in 1978 and significant resources remain un-exploited. The majority of the remaining resource is located in areas of the mine where extensive development is in place, providing good access to the orebody.
The Company announced a maiden JORC resource during 2013. The JORC Indicated Mineral Resource is situated between the 14 and 19 levels (approximately between 350m to 550m below surface, where the majority of historical resources are located), is 1,264,800 tonnes @ 15.5% zinc, 3.8% lead and 0.33% V2O5 at a 3% Zn cut-off. (Resource is 100% attributable to the Company.) The JORC resource was compiled by Coffey Mining (SA) Pty Ltd.
This JORC resource estimate verifies the historical (non-compliant with current JORC reporting standards) resource estimate from December 1977 of 1,196,000 tonnes @15% zinc, 5.3% lead and 0.63% V2O5 between the 14 and 19 levels as reported in the Berg Aukas Competent Persons report 2011 ("2011 CPR").
This has shown the deposit to be an exceptionally high grade zinc/lead deposit with much of the significant infrastructure in place including an 800m shaft and underground development which should allow rapid and cost effective reopening of the mine.
In addition to standard lead and zinc sulphide concentrates, the project produces two other products. The first is a combined zinc oxide/silicate concentrate and the second is a vanadium rich lead/zinc concentrate. The key challenge for the project is to maximise revenue from all metals contained in concentrates and, in this respect, matching the concentrates to the different capabilities of smelter/refineries is important. Initially, samples were sent to a number of smelter/refineries in Namibia, Thailand and China and based on their response, the company has identified the most suitable destinations. It is expected that commercial terms will be agreed once the smelters/refineries identified have completed a more detailed round of testwork
For further information contact:
Rod Webster, Chief Executive Officer Weatherly International +44 (0)207 917 2989Max Herbert, Company Secretary
Samantha Harrison RFC Ambrian Limited +44 (0)203 440 6800Nominated Advisor and Broker