Investee Company Operational Update

RNS Number : 3546Q

Kennedy Ventures PLC

29 November 2016

 

29 November 2016

Kennedy Ventures plc

Investee Company Operational Update

Kennedy Ventures plc ("Kennedy Ventures" or "the Company"), the AIM quoted investment company, who through its stake in African Tantalum (Pty) Limited ("Aftan") has an interest in the Tantalite Valley Mine ("TVM") in Namibia, is pleased to announce that it has been informed by Aftan that the TVM is now at a commercial production level, and remains on course to hit the targeted throughput rate of 15,000 tonnes per month. This is a result of the upgrade of plant equipment and reorganisation of modules at the Homestead Project ("Homestead").

In addition, Aftan has informed the Company that its first shipment, containing 1.6 tons of tantalite concentrate, has been delivered to its offtake partner on schedule. Shipments are expected to take place twice per month going forward.

Aftan has also confirmed that the plant upgrade programme is now in its final stages, with the installation of a milling circuit underway, which is forecast to complete in December 2016. This is predicted to increase the recovery of fine tantalite. Upon completion of this phase, the TVM is expected to be cash flow positive. Full production at an increased mining rate of 15,000 tonnes per month has been targeted for Q2 2017.  

Furthermore, Aftan has progressed with its assessment of the potential value of the lepidolite lithium deposit, with both the geological and metallurgical test studies advancing as expected. The completion of an upgrade to the processing plant in the form of an additional floatation circuit, enabling the processing of the lithium bearing ores, is scheduled for Q1 2017. This feature will enable the removal of mica to create a lithium-rich concentrate, which would provide a potential entrance into the lithium market for Aftan.

Renier Swiegers, General Manager of TVM, said:

"The plant upgrade programme continues to progress on schedule and I am delighted that the tantalite shipments have now recommenced. Full commercial production at the increased rate of 15,000 tonnes per month is on course to begin in Q2 2017, and all those involved are working relentlessly to achieve this target."

Giles Clarke, Chairman of Kennedy Ventures, said:

"The upgrade was an important and essential part of Aftan's strategy to deliver real returns from the TVM and it is quickly approaching a cash flow positive position through the sale of high grade tantalite. We also remain very excited about the lithium potential from TVM and look forward to Aftan advancing its knowledge of the deposit, from which it intends to produce lithium concentrate next year."

For further information on the Company, visit: www.kvplc.com:

Kennedy Ventures plc
Peter Hibberd (CEO), c/o Camarco	Tel: [phone]
Grant Thornton UK LLP (Nominated Adviser) Colin Aaronson Richard Tonthat Daniel Bush	Tel: [phone]
Shore Capital (Broker) Mark Percy / Toby Gibbs (corporate finance) Jerry Keen (corporate broking)	Tel: [phone]
Camarco (PR) Gordon Poole / Billy Clegg	Tel: [phone]

 

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