Last checked at 21 Jul 2011 07:00
Embargoed: 0700hrs 21 July 2011
Pathfinder Minerals Plc
("Pathfinder Minerals" or the "Company")
New Mining Licence Issued
Pathfinder Minerals Plc, the natural resources company with licences to mine heavy minerals sands in Mozambique, is pleased to announce that the National Directorate of Mines at the Ministry of Mineral Resources of Mozambique (the "Ministry") has issued a new mining concession licence for the Company's Moebase mineral sands deposit.
Mining concession licence 4623C ("Moebase") was issued on 13 July 2011 for a period of twenty-five years, replacing the previous exploration and research Licence 73L. Pathfinder Minerals, through its 99.99% owned subsidiary Companhia Mineira de Naburi S.A.R.L., now has mining concessions on both the Moebase and Naburi licences situated on the Indian Ocean coast of Mozambique.
The Company had previously anticipated that the Moebase licence would be unified with licence 760C ("Naburi") and mirror the existing terms of Naburi's twenty-five year mining concession. The Company is very pleased that the Ministry has, in fact, issued a new independent mining concession for Moebase with a twenty-five year term expiring during 2036, whilst the Naburi mining concession, expiring during 2029, remains unchanged.
Nick Trew, Chief Executive of Pathfinder Minerals, said:
"The award of a brand new twenty-five year mining concession for Moebase is the best possible situation for Pathfinder Minerals. The Company is moving forward through feasibility with the benefit of full mining concession status now on both of our assets."
Enquiries:
Pathfinder Minerals Plc
Nick Trew, Chief Executive
Tel. +44 (0)20 7399 4371
Daniel Stewart & Company Plc
Oliver Rigby or James Thomas
Tel: +44 (0)20 7776 6550
M: Communications
Ben Simons or Maria Souvorov
Tel: +44 (0)20 7920 2340 /2327
Notes to Editors
About Pathfinder Minerals
Pathfinder Minerals, through a 99.99%-owned subsidiary, has mining concessions covering approximately 32,000 hectares of land on the Indian Ocean coast of the Zambezia province of Mozambique, known to contain the heavy minerals, ilmenite, rutile and zircon.
The licences, known as Naburi and Moebase and formerly held by BHP Billiton, are over land located near the Indian Ocean coast of Mozambique. Historical reported mineral resources on the assets are estimated at 2.02 billion tonnes with a 3.55% total heavy mineral content, which is equivalent to approximately 71.7 million tonnes of contained heavy minerals. Confirmatory drilling and metallurgical test work will be required to upgrade the classification of the mineral resources.
Exploration work conducted on the licences from the mid-1980s through to 2002 has identified significant mineralisation. Bulk sampling and metallurgical test work conducted in support of prefeasibility and feasibility studies in the mid-1990s indicates that valuable heavy minerals can be recovered using conventional dredge mining, wet concentration and dry mineral separation processes.
The Company is undertaking a detailed feasibility study with a view to developing a mine for commercial extraction.
Heavy Minerals Sands
The more valuable components of a heavy mineral sands deposit include the titanium oxide minerals ilmenite and rutile, and in addition, zircon. Ilmenite and rutile are used to produce titanium dioxide pigment used in the production of paint, paper, plastic, textiles, rubber and pharmaceutical products. Zircons are commercially mined for the metal zirconium and are used for abrasive and insulating purposes.