Investee Company Operational Update

RNS Number : 2681U

Kennedy Ventures PLC

23 October 2017

 

23 October 2017

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 Namibia Tantalite Investment Mine ("NTI") (historically referred to as Tantalite Valley Mine) in Namibia, is pleased to provide an operational update.

Highlights:

·     A second shipment of industry leading high purity tantalum is currently in transit to Aftan's customer,    with further shipments planned before years end in line with our ramp up agreement with the Customer.

·     Plant upgrades continue with the installation and commissioning of the Primary Crusher, which is     performing well. New number one and number two screens along with new conveyors in the crusher circuits have been installed, allowing for a more ergonomic and consistent sizing flow, significantly increasing efficiency.

·    Our current North American Global Customer will be visiting the NTI mine the first week of November      and will be reviewing the changes we have implemented along with continued discussions of our ramp plan since their last visit.

·    A second potential Customer will be performing a thorough audit of our systems as well as discussing  around potential supply.

·    Closed on a multi-year bulk diesel agreement with the local government, Namcor, which will increase our logistics efficiency, utilising a 23kltr tank and pump system with a once a month delivery at well below pump pricing costs

·    Negotiations with the Miners Union ("MUN") has resulted in a newly signed multi-shift agreement being agreed, in line with previous announcements. This is expected to be signed this week by the Minister of Labors Office.

·    In the process of securing a fixed cost agreement with a local supplier for Personal Protective Equipment ("PPE"), eliminating variable cost from operations and continues our country based spend improvements.

·    Recent pegmatite mapping by The MSA Group, whom have been working on behalf of a subsidiary of      Kennedy Ventures plc, Tameka Shelf Company Four (PTY) Ltd, has confirmed the presence of a number of Lithium-Caesium-Tantalum (LCT) type pegmatites that are considered to be highly prospective for lithium and tantalite mineralization. The mapping was used to design the current diamond drilling programme, which commenced on 16 October 2017 with additional drilling being planned to commence immediately after the current programme.

New Installations and plant upgrades continue at the NTI mine which is now producing Tantalum grades at world class levels, as required by its end user a leading manufacturer of electronic components. Our second shipment has been sent and the company is confident that it will be able to deliver further shipments before year end. The Customer is planning to visit the site in the first week of November to view the plant upgrades since their last visit in May. Along with this, a second potential Customer will be performing a thorough audit of the plant with a view to potentially arranging shipment.

The MSA Group, whom have been working on behalf of a subsidiary of Kennedy Ventures plc, Tameka Shelf Company Four (PTY) Ltd, have recently completed a pegmatite mapping exercise at Tantalite Valley. The results of which have confirmed the presence of a number of Lithium-Caesium-Tantalum (LCT) type pegmatites that are considered to be highly prospective for Lithium and Tantalite mineralization. The mapping has so far been used to design the current diamond drilling programme, which commenced on 16 October 2017, this programme is focused on the pegmatites known to contain lepidolite and spodumene lithium mineralization in addition to tantalite mineralization. Additional drilling is planned to commence immediately after the current programme with the intention to define a Mineral Resources on the most prospective pegmatites.

Aftan continues to work with local Universities and have the Professor of Metallurgy and two Metallurgical Students from the University of Namibia ("UNAM") on site, who are designing a new Tailings Dam that will be reviewed before the year end before being sent out for local bidding.

Larry Johnson, CEO of Kennedy Ventures, commented:

"I am delighted by the continued interest and support shown by our current Customer. The upgrades we headlined as necessary earlier in the year to ensure NTI's product met with our Customers strict requirements are now coming through and ensuring we can consistently deliver high grade tantalum to our Customer. As we continue to ramp up production, we are now receiving added interest from other potential customers.

We have made huge strides in a very short amount of time and the improvements continue pushing us to a world class position with our ability to meet stringent specifications with our high-grade Tantalum Ore. We look forward to updating our shareholders as further milestones are achieved."

Kennedy Ventures plc
Larry Johnson (CEO), c/o Camarco	Tel: [phone]
finnCap (Nominated Adviser and Joint broker) Christopher Raggett / Scott Mathieson / Anthony Adams (corporate finance) Simon Johnson (corporate broking)	Tel: [phone]
Shore Capital (Joint broker) Mark Percy / Toby Gibbs (corporate finance) Jerry Keen (corporate broking)	Tel: [phone]
Camarco (PR) Gordon Poole / Billy Clegg James Crothers	Tel: [phone]

The data included in this press release may vary as operations continue, and also due to the factors involved in operating in the geography.  These factors could include inclement weather, social issues and shut downs for technical works undertaken among others.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

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