Mining commences and 60% resources base upgrade...
25 April 2007
Mining and heavy mineral concentrate production has started at
Kenmare's Moma Titanium Minerals Mine in northern Mozambique, which
contains one of the largest deposits of titanium-bearing mineral
sands in the world.
The mining process will initially utilise one of two dredges to mine
the mineral-bearing sands, with both dredges to operate in a few
months time once the dredge pond is enlarged. The ore mined is being
processed through the Wet Concentrator Plant to produce a heavy
mineral concentrate. This concentrate is currently being stockpiled
for separation into final products (ilmenite, rutile and zircon) when
the Mineral Separation Plant commences operations shortly. Section
one of the project, which includes the mining pond, dredges, Wet
Concentrator Plant and related infrastructure, has been taken over
by Kenmare, and a taking-over certificate has been issued to the
contractor.
Kenmare expects to achieve annual production levels of 800,000 tonnes
of ilmenite, (the main titanium bearing mineral), 21,000 tonnes of
rutile and 56,000 tonnes of zircon (a zirconium mineral used in the
ceramics industry). Expansions are planned so as to increase
production levels to 1.2 million tonnes per annum of ilmenite plus
co-products by the end of 2009. Moma will operate at a low point on
the production cost curve.
Kenmare is also pleased to announce a significant increase of the
resource base at Moma following a recent drilling programme at the
Nataka zone, close to the Mineral Separation Plant at Moma. The
total resource under licence to Kenmare has increased by more than
60%, from 101 million tonnes to 163 million tonnes of contained
ilmenite, with associated increases in co-products to 12.4 million
tonnes of zircon and 3.6 million tonnes of rutile. The inferred
resource at Nataka has increased from 49 million tonnes to 110
million tonnes of contained ilmenite, with associated increases in
co-products to 8 million tonnes of zircon and 2 million tonnes of
rutile.
Kenmare's Chairman, Charles Carvill said "We have been waiting for
this day for a long time and are delighted that mining is underway.
It is great news for our staff, our shareholders and our customers.
Additionally the increase in the resource base will allow us to push
production levels significantly above our present anticipated level
while still having a very long life mine. In the meantime the
product market is moving in a positive direction with rising prices.
We are confident our customers will be able to absorb increased
production levels."
For more information:
Kenmare Resources plc
Michael Carvill
Managing Director
Tel: + 353 1 671 0411
Mob: + 353 87 674 0110
Conduit PR Ltd
Leesa Peters
Tel: + 44 (0) 207 429 6600
Mob: + 44 (0) 781 215 9885
Murray Consultants Ltd
Elizabeth Headon
Tel: + 353 1 498 0300
Mob: + 353 87 629 1453
www.kenmareresources.com
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