SRX.L Regulatory News (SRX)

19 Nov 2007 07:02

Titanium Resources Group Ltd19 November 2007 Commissioning of second dredge at Sierra Rutile mine 19 November: Titanium Resources Group ("TRG" or "the Company") today announcesthe commissioning of the second dredge ("Dredge D2") at the Company's SierraRutile Mine in Sierra Leone. Dredge D2, which will double rutile productioncapacity to 200,000 tonnes per annum, will be commissioned later today by thePresident of the Republic of Sierra Leone, His Excellency, Ernest Bai Koroma. The dredge is expected to start commercial production in December and theCompany expects to begin shipping the material produced by Dredge D2 in thefirst quarter of 2008. Dredge D2 is a complete unit comprising a bucket ladder dredge and heavy mineralseparation plant mounted on a single pontoon. Tailings from the combined unitwill be disposed 1000ft - 1500 ft behind the dredge by way of a floatingpipeline and auxiliary pontoon. Final concentrate from the onboard treatmentplant will be pumped to shore via a 4" concentrate pipe line. When running atfull capacity the Dredge will have a maximum hourly throughput of 1350 tonnesper hour, and will be expected to be operational for 7000 hours a year. Commenting on the announcement, Len Comerford, CEO of TRG, said: "The successful commissioning of the second dredge at Sierra Rutile marks theachievement of the initial growth strategy we set out at the time of listing in2005. A doubling of rutile production will help TRG to further consolidate theCompany's world class position in rutile markets and increase market share toapproximately 23%. We are now focussed on expanding production capacity atSierra Rutile by a further 40,000 tonnes with the development of a third dredgewhich we expect to complete in mid 2008. Importantly the tangible benefits for the people of Sierra Leone will reachbeyond the immediate community near our operations and help to encourage furthereconomic investment in the country." Commenting on the announcement, His Excellency, Ernest Bai Koroma, President ofSierra Leone, said: "The continued development and expansion of Sierra Rutile sends a clear signalto the international community that Sierra Leone is once again an attractivedestination for investment. I would like to take this opportunity to thank TRGfor the commitment they have shown to Sierra Leone as we rebuild and renew ournation." Ends Enquiries: Len Comerford / Walter KansteinerTitanium Resources GroupTelephone: +44 20 7321 0000 Michael Oke / Andy MillsAura FinancialTelephone: +44 20 7321 0000 Nominated AdviserDavid NabarroNabarro Wells & Co. LimitedTelephone: +44 20 7710 7400 Notes to editors Titanium Resources Group Titanium Resources Group is a mining company with operations in the Republic ofSierra Leone. The Group is the country's largest private sector employer andproduces three commodities, rutile, ilmenite and bauxite, for use in industrialapplications. The Group's two mines - the Sierra Rutile Mine and the SML BauxiteMine together account for over 65 per cent of the exports of Sierra Leone. The SML operation mines premium grade metallurgical bauxite which is the primaryfeedstock used in the production of aluminium. Sierra Leone Sierra Leone, officially the Republic of Sierra Leone, is located on the westcoast of Africa. It is bordered by Guinea on the north and Liberia on the south,with the Atlantic Ocean on the west. The name Sierra Leone was adapted from thePortuguese name for the country: Serra Leoa, literally "Lion Mountain Range." The country benefits from significant mineral deposits and Titanium ResourcesGroup is committed to realising the value of these deposits for our shareholderswhile contributing to the commercial success of Sierra Leone. Sierra Leone recently held successful Parliamentary and Presidential elections.This marks a further landmark in the development of Sierra Leone and we lookforward to working with the Government and other local stakeholders. This information is provided by RNS The company news service from the London Stock Exchange