Operational Update

RNS Number : 8138U

Kennedy Ventures PLC

03 August 2015

 

03 August 2015

Kennedy Ventures plc

("Kennedy Ventures" or the "Company")

Operational Update

Kennedy Ventures, which is focused on tantalite production in Namibia through its 75% holding in African Tantalum (Pty) Limited ("Aftan"), is pleased to provide an update to its shareholders of operational milestones ahead of first delivery of production from Aftan to its offtake partner, a leading manufacturer, which is on track for the beginning of Q4 2015.

Key milestones:

·    The re-commissioning of the power supply and front end of the mine, scheduled for Q3 2015

·    The modification and re-commissioning of the gravity separation plant, scheduled for Q3 2015

·    The resumption of mining activities scheduled for Q3 2015

·    First delivery of production to the offtake partner scheduled for the beginning of Q4 2015

The re-commissioning of the power supply and front end of the mine has commenced. The Company is making good progress and is expected to complete mid Q3 2015. Following this the modification and re-commissioning of the gravity separation plant, which the Company has found to be in sound condition, will begin. The resumption of mining activities is predicated on the above work streams completing on time and at this stage, first delivery of production to the offtake partner is on track for the beginning of Q4 2015.

Phased development programme

It is anticipated that the first phase of production, commencing in Q3 2015, will see a build-up of throughput at the course recovery plant to treat up to 10,500 tonnes per month; estimated to produce around 5,000lbs Ta205 per month.  The second phase of the development programme would focus on fines recovery which should increase throughput to around 15,000 tonnes per month and output of 9,200lbs Ta205 per month by mid-2017.  The Directors expect that the costs of production will be amongst the lowest in the industry.  An independent study has confirmed the estimated resource of 843,000t grading 490ppm Ta2O5.

Peter Hibberd, CEO of Kennedy Ventures commented:

"It is a busy time for the Company and we continue to make excellent progress as we work towards bringing the Tantalite Valley Mine back into production. With a clear timeline to production outlined, we are confident of delivering this project on time and to budget and look forward to updating shareholders as further progress is made."

ENDS

For further information, please contact:

Kennedy Ventures plc		020 3757 4983
Peter Hibberd c/o Billy Clegg
Cenkos Securities (Nominated Adviser and Joint Broker)		0131 220 6939
Derrick Lee / Nick Tulloch
Shore Capital (Joint Broker)		020 7408 4090
Mark Percy / Toby Gibbs (corporate finance)
Jerry Keen (corporate broking)
Peterhouse Corporate Finance (Joint Broker) Duncan Vasey		020 7469 0935
Camarco
Billy Clegg / Georgia Mann / Tom Huddart		020 3757 6983

Notes to editors

Tantalite concentrates form the vast majority of feedstock for all tantalum products. As such they are critical and unreplaceable parts of a wide range of modern electronics including computers, tablets, mobile phones, motor components and video game systems.

Aside from electronics, tantalum has significant usage in super alloys, specialised steels, corrosion resistant equipment and medicine.

Tantalum's applications are based on its unique physio - chemical properties. The oxides and metal have extremely high melting points, high heat conductivity and strong resistance to corrosive environments. Combined, these factors have entrenched its international demand and made it an important component of numerous research projects and new technologies.

Trade pricing is following tantalum markets as per Asian Metals and Metal Pages.

In August 2012, the US Securities and Exchange Commission adopted a rule mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act to require companies reporting to the SEC to publicly disclose the origins of the tantalum they buy in order to restrict the use of conflict minerals that originated in the Democratic Republic of the Congo or an adjoining country.  As a result, users of tantalum are encouraged to demonstrate that their supply chain is transparent to ensure that conflict-free tantalum is procured.

It is intended that the tantalum produced by Aftan will be conflict-free.

 

END

 

 

MSCUGUGGRUPAPGP