|
TEL
TEL
TEL - Teal Exploration & Mining Inc. - Kalumines Reports Excellent Drill Results
And Achieves Planned Mining Levels At Lupoto
TEAL Exploration & Mining Inc.
Corporate Access Number: 31403
ISIN: CA8781511099
(Incorporated in Yukon, Canada on 1 June 2005)
SA Company Registration Number: 2006/003229/10
JSE share code: TEL
JSE short name: TEAL
Wednesday, November 14, 2007
KALUMINES REPORTS EXCELLENT DRILL RESULTS AND ACHIEVES PLANNED MINING LEVELS AT
LUPOTO
- Accelerated drilling program in the DRC providing encouraging results.
Selected results:
- LPRD004 - 40 drill metres at 7.08%Cu
- LPRD034 - 26 drill metres at 5.17%Cu
- LPDR028 - 16 drill metres at 3.33%Cu
- LPOR005 - 25 drill metres at 5.60%Cu
- Initial mining levels at the Lupoto Copper Project in the DRC achieved;
furnace commissioning commenced
- The Konkola North Copper Project`s mining technical feasibility study
completed with increased exploration drilling within Area `A` Extension now
being undertaken on the property in Zambia
- The Otjikoto Gold Project in Namibia announces a mineral resource upgrade:
- 460,000oz reported in the indicated category; and
- An additional 1.32Moz in the inferred category
- Additional bridging finance secured with a guarantee from major
shareholder, ARM
In releasing results for the three months ended September 30, 2007, TEAL
Exploration & Mining Incorporated (TSX-"TL") (JSE-"TEL") ("TEAL" or the
"Company") has announced that its planned mining rate at the Lupoto Copper
Project, which forms part of the Kalumines property in the Democratic Republic
of Congo ("DRC"), was achieved shortly after the end of the period under review.
In addition, high-grade exploration drilling intersections at the Lupoto Copper
Project were announced during the quarterly period. Phases 1 and 2 of the
drilling program have now been completed: these phases confirmed and verified
the historical mineral resource estimate for the Lupoto Copper Project; while a
further phase 3 drill program that is aimed at increasing the resource for the
larger mine feasibility study, is advancing. Full disclosure regarding the
reported exploration drill results, can be found at: www.tealmining.com.
Shortly after the end of the period under review, planned mining production
levels were exceeded, and mechanized sorting equipment, primarily screening
plants and conveyor belt systems, started commissioning to improve efficiencies
of the manual sorting process. Laboratory test work on the leaching of the finer
copper containing material at the Lupoto Copper Project has been completed and
is showing encouraging results. A feasibility study on a larger open pit mining
operation at the Lupoto Copper Project, together with a dedicated processing
facility at Lupoto to produce LME `A` grade copper cathodes, is in progress.
The authorities in the DRC have established a Commission to review mining
licences and other agreements. This Commission, under the authority of the
Minister of Mines, was to report its findings to Cabinet and for review by the
Presidency during November 2007. The over-riding objective is to create a
cohesive policy and an investor friendly environment for mining in the DRC.
TEAL fully supports this initiative and has co-operated with the review process.
The mining title held by TEAL, through Kalumines, has not been questioned and
the Company awaits the formal release following the Cabinet`s consideration. In
a public statement made today, November 14, 2007, the Governor of the Katanga
Province in the DRC, Mr Moise Katumbi, re-assured investors that as Governor he
continues to promote "...a positive investment climate for responsible mining
companies, which operate according to internationally recognized standards and
who undertake social programs, which have a positive impact on the
communities..". The Governor concluded his statement by encouraging mining
companies to continue investment programs "in spite of rumours of a non-official
document by the Commission reviewing the mining contracts".
TEAL Metals purchases all the concentrates produced at Kalumines` Lupoto Copper
Project. This furnace, which is expected to complete hot commissioning before
the end of 2007, has a capacity to produce approximately 5,000 tonnes per year
of blister copper ingots with a grading of 85% to 95% copper. The surplus
concentrates, some 1,400 tonnes a month, are being sold to various other smelter
operators in the DRC, in particular, to Societe Miniere du Katanga s.p.r.l.
("Somika") with whom TEAL Metals has formed a joint venture to process the
excess copper ore material at Somika`s facilities. TEAL Metals supplies the
concentrate at a pre-determined price and Somika provides all resources, where
after profits are being shared on a formula basis. Approximately 99 tonnes of
blister copper was produced through this arrangement and was sold subsequent to
the end of the quarter under review.
The technical aspects of the Konkola North Copper Project feasibility study,
based on an operation to exploit the South and East Limb areas of the ore body,
have been completed. The study has confirmed the practicality of using the
existing shaft to gain access to the ore body by mining first in the South Limb
area, followed by the development and mining of the East Limb area. The Company
is now continuing to assess the viability of a dedicated processing facility for
Konkola North, which is being analyzed as a separate project, and is being
combined with the underground feasibility. Certain long lead items are being
acquired, such as a mill, mine shaft winders and the electrical requirements for
the winder system, upgrading of the mine power supply and the detailed design of
the steelwork sections in the shaft that require replacement. Management expects
that the Konkola North Copper Project final feasibility study will be completed
by early 2008 and, following discussions with TEAL`s partner in the project,
ZCCM Investment Holdings plc, it will be prepared for a decision by the
Company`s Board of Directors during the first quarter of 2008.
The exploration drilling program on Konkola North`s Area `A` Extension is
continuing and a second drill rig will be operational within the current
quarter. Following a re-interpretation of the geological model in the area, the
second drill rig will be strategically positioned to enhance the understanding
of the mineralization.
When TEAL completed its initial public offering on the TSX in November 2005, the
Otjikoto Gold Project`s resource estimate totalled 873,000 ounces in the
inferred category. Following significant drilling and geological interpretation
since that time, an updated National Instrument 43-101 for the Otjikoto Gold
Project was recently filed with the relevant authorities in Canada. The
independent company that completed the report, titled Otjikoto Gold Project -
Otavi Region, Republic of Namibia - Independent Technical Report (van der Merwe
& Wanless, September 2007), was SRK Consulting (South Africa) (Pty) Limited
("SRK"). The report includes additional infill and extension drilling and the
changes reflect extensions of all three mineralized zones based on the
additional drilling results. SRK recognizes areas of higher risk, particularly
on the Bottom Veins Zone, and these areas have remained classified as inferred
resources. SRK consider however that the confidence in the estimates in the area
with closely spaced drilling has increased significantly.
A summary of SRK`s mineral resources for TEAL`s Otjikoto Gold Project is as
follows:
Weathering Classification Mt Aug/t koz Au
Oxide Indicated 2.1 1.32 88
Inferred 0.6 1.33 25
Fresh Indicated 9.7 1.19 372
Inferred 31.5 1.28 1,295
TOTAL Indicated 11.8 1.21 460
Inferred 32.1 1.28 1,320
SRK support the classification as inferred and indicated mineral resources, and
additionally consider there to be potential for definition of additional mineral
resources and further upgrading the categories as the drilling density increases
and the extent of drilling increases to the southwest of the current project
area.
TEAL recorded a consolidated net loss for the three months ended September 30,
2007 of $10.4 million, or $0.19 loss per share, which compares to a net loss for
June 30, 2007 of $8.6 million, or $0.16 loss per share. This quarter-on-quarter
increase is indicative of the accelerated expenditure that occurred on the
exploration drilling program in the DRC, as well as the commencement of mining
and the start of commissioning of the electric-arc furnace.
As at September 30, 2007, the Company had available resources of $3 million
remaining from a $20 million bridge loan facility secured in May 2007.
Additional funding in the form of a $50 million bridge loan facility, guaranteed
by ARM, has been secured with a commercial bank and replaces the $20 million
facility entered into in the last financial year.
Over the quarter, the Company recorded $9.4 million net cash outflows on
operating activities compared to net cash outflows of $7.5 million for the
previous quarter. The cash was mainly used for exploration, feasibility studies,
activities to advance the Company`s projects, including resource expansion
drilling, and expenses related to mining at Kalumines in the DRC. The
significant increase in the Inventory relates to the stock-pile build-up that
has accumulated as a result of the mining operation at the Lupoto Copper
Project.
The recently announced bridging facility is unsecured, matures on August 31,
2008, and each advance will be at a minimum amount of $5 million. The proceeds
of the facility will be used for general corporate funding requirements, as well
as working and other capital requirements, inter alia:
- Kalumines` Lupoto Copper Project in the DRC where planned mining production
levels for the phase 1 mine are being achieved and where the construction
of a demonstration plant will commence shortly for a phase 2 operation
aimed at increasing production levels, plant expansions and efficiencies;
- Continuing exploration drilling to verify, upgrade and expand the presently
defined, historical inferred resource estimate at the Lupoto Copper
Project;
- The electric arc furnace in Lubumbashi, DRC, that is in the process of
commissioning;
- Finalizing the feasibility study on the Konkola North Copper Project in
Zambia and the acquisition and order placement of various long-lead items
for the project; and
- Continuing the exploration drilling campaign that is underway on Area "A"
Extension on the Konkola North property.
Funding to continue the exploration drilling program and complete a pre-
feasibility study on the Otjikoto Gold Project ("Otjikoto") in Namibia will be
drawn from the expected payment from EVI Mining Company Limited ("EVI"). The
transaction between TEAL and EVI comprises the intended subscription by EVI of
an initial 10% of the share capital in an indirectly held TEAL subsidiary,
Avdale Namibia (Proprietary) Limited ("Avdale"). Payment totals $5.5 million:
made-up as to $4.4 million for 8% on closure of the final agreements, and $1.1
million payable within six months after closure for the balance, resulting in
the 10% equity interest in Otjikoto and the surrounding assets. TEAL has also
given EVI an option to acquire a further 5% following the completion of a
definitive feasibility study assessing the viability of developing Otjikoto. The
option on the additional 5% interest in Avdale will be priced, according to fair
market value principles, at the time of the delivery of the feasibility study.
The shareholders of EVI are broad-based and include various investment companies
owned by Namibians, including Omankete Investment (Pty) Limited, the Namibian
Mine Workers Investment Company, Pamue Investments Corporation and the Omusati
Women Empowerment Group. EVI`s Chairman is Dr Leake S. Hangala.
Mr. Claus Schlegel, Pr. Sci. Nat. (No. 400149/90), TEAL`s Vice President:
Exploration and Business Development, is the "qualified person" for the content
of this press release for purposes of National Instrument 43-101.
ends
NOTE:
TEAL is incorporated under the laws of the Yukon, Canada and its common shares
are listed on the Toronto Stock Exchange ("TSX") and the JSE Limited ("JSE").
The common shares of the Company trade under the symbol "TL" on the TSX and
"TEL" on the JSE.
TEAL is a mineral development and exploration company with development projects
and exploration areas in Namibia, Zambia and the Democratic Republic of Congo
("DRC"). TEAL has a portfolio of base and precious metal development projects
and complementary exploration areas, and the Company continues to seek other
opportunities, mainly in southern and central Africa.
TEAL has targeted specific projects: the Konkola North Copper Project in Zambia;
the Otjikoto Gold Project in Namibia; and the Kalumines Copper-Cobalt Project in
the DRC. TEAL also has interests in various other mineral licence areas in
Zambia and in Namibia on which the Company continues drilling and other
exploration activities.
A copy of TEAL`s Annual Financial Statements and the MD&A are available at
www.sedar.com as well as at www.tealmining.com
For further details contact:
Julian Gwillim (VP: Investor Relations and Corporate Development) on
+1 416 828 1422 (Canada); or +27 82 4524 389 (SA); or julian@tealmining.com,
or
Rick Menell (President and CEO) on +27 82 450 2301; or rick@tealmining.com.
Date: 14/11/2007 17:57:05 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS. |
|
