Weatherly International Plc Regulatory News (WTI)

8 Aug 2006 09:52

Weatherly International PLC08 August 2006 Weatherly International plc 8 August 2006 New copper concentrate supply contracts and Kombat mine area evaluation and investment programme Weatherly International announces that its Namibian subsidiary Ongopolo Miningand Processing Ltd ("Ongopolo") has entered into new contracts to providesupplies of copper concentrates for its smelter at Tsumeb. • Ongopolo has agreed to purchase 2,000 tonnes per month of copper concentrates from the Democratic Republic of Congo (DRC) through trading companies BAM International Export (Namibia) and Solar Spectrum Trading (RSA). • Ongopolo will toll treat a further 3,700 tonnes per month of copper concentrates from the DRC and Zambia under arrangements with Republic House (UK). These supply contracts will augment Ongopolo's own mine production from the twoWindhoek area mines, Otjihase and Matchless, where monthly production isexpected to increase from current levels to around 500 tonnes of containedcopper by December 2006 as changes being implemented start to take effect. As announced, Ongopolo is currently refurbishing the Tsumeb smelter (No 1furnace), which is expected to be back in operation in September 2006. Followingthis refit, and with supply contracts in place, the smelter is expected toproduce up to its design capacity of 30,000 annual tonnes of copper. The recent additional equity fundraising of £3.7m will allow an acceleration ofplans to evaluate both the Kombat and Tsumeb area mining projects. At Kombat, the continued development and delineation of ore at the new shaft,Asis Far West, will be the focus for the next 6 months. The aim is to convertintersections established from the original surface drilling into mineable orereserves. At the Kombat/Asis West mine, a decision whether to de-water the lower levels,which have been flooded since mid 2005, is dependant on a report being preparedby a South African mining consultant. In addition, the potential to mine copperabove the water table at the old Kombat Central, Kombat East and Asis East areasis also being evaluated. There may be potential in these areas for a number ofsmall open pits and some shallow remnant mining. A new general manager, Paul Sharples, has been appointed to oversee the Kombatprogrammes. Mining at Kombat is on hold until these assessments are completed. At Tsumeb, resource consultants RSG of Perth have been appointed to undertake astudy to begin mining at Tschudi, a large low grade resource (43 million tonnesat 0.8% Cu). The plan is to mine the high grade core (around 1.9 % Cu) usingthe existing decline access, while investigating a larger open pit option andthe expansion of the Tsumeb concentrator. It is hoped to see operations atTschudi and at a small satellite mine (Tsumeb West) underway before the end ofthe year. For further information contact: Weatherly International plc Rod Webster +44 (0) 20 7917 2989 Libertas Capital Jonathan Flory +44 (0) 20 7569 9650 First City Financial Public Relations Sarah Samworth +44 (0) 207 436 7486 This information is provided by RNS The company news service from the London Stock Exchange