Zincox Resources Plc Regulatory News (ZOX)

2 Aug 2007 07:00

ZincOx Resources PLC02 August 2007 Yemen parliament approves contract for development of Jabali zinc mine ZincOx Resources plc ("ZincOx" - ticker symbol ZOX), announces that the Yemenparliament has approved the terms and conditions for the development andexploitation of the Jabali zinc deposit (the "Exploitation Contract"). This isthe first large scale mining licence ever to be granted in the country. The Exploitation Contract is an agreement between the Ministry of Oil andMinerals, representing the Government of Yemen, and Jabal Salab Company (Yemen)Limited ("Jabal Salab"), in which ZincOx holds a 52% interest and Ansan Wikfs(Yemen) Limited, a company controlled by prominent Yemeni businessmen, holds48%. The Contract is an Act of Parliament and will be incorporated into the lawin Yemen. Andrew Woollett, Chairman of ZincOx, said, "This is a major step forward, notonly in the development of Jabali but also of the mining industry in Yemen.ZincOx, as Manager of Jabal Salab, plans to commence construction of the mineand associated facilities as soon as finance is in place." The Jabali deposit is located 100km north east of Sana'a, the capital city. Thedeposit contains a measured and indicated JORC resource of 10.8 million tonnesat 8.7% zinc, 1.2% lead and 68 grams per tonne of silver with an inferred JORCresource of 1.8 million tonnes at 9.4% zinc, 1.2% lead and 71 grams per tonne ofsilver. The deposit is expected to be mined at the rate of 800,000 tonnes perannum of ore for the production of approximately 70,000 tonnes per annum of highquality zinc oxide. The capital cost of developing the project, including contingencies and workingcapital, is estimated at $176 million. Discussions with respect to a financingfacility, which is being structured and arranged by the London-based investmentbanking boutique, Exotix Limited, are at an advanced stage. Production isscheduled to begin in the middle of 2009. 2nd August 2007 www.zincox.com For more information please contact: Michael Foster, ZincOx Resources plc +44 (0) 1276 450100mfoster@zincox.com Charlie Geller/ Ed Portman, Conduit PR +44 (0) 20 7429 6604 +44 (0) 7970 067 320 John Harrison/Nick Stamp, Numis Securities +44 (0) 20 7260 1000 This information is provided by RNS The company news service from the London Stock Exchange