First Day of Dealings

RNS Number : 9825A

Pathfinder Minerals PLC

10 February 2011

 

Embargoed: 0700hrs 10 February 2011

Pathfinder Minerals Plc

("Pathfinder Minerals" or the "Company")

First Day of Dealings

Pathfinder Minerals (AIM: PFP), the natural resources company with licences to mine heavy minerals sands in Mozambique, announces that shares in the enlarged Company will begin trading today on AIM.

Pathfinder Minerals, through a wholly owned subsidiary, holds two licences to mine heavy minerals sands on and near the Indian Ocean coast of Mozambique, containing a potential titanium dioxide ore resource. The Company holds an extraction licence on the Naburi block and an exploration license on the adjacent Moebase block. Exploration work conducted on the licences from the mid-1980s through to 2002 has identified significant mineralisation. Bulk sampling and metallurgical test work conducted in support of prefeasibility and feasibility studies in the mid-1990s indicates that the valuable heavy minerals can be recovered using conventional dredge mining, wet concentration and dry mineral separation processes.

The valuable components of these sand deposits include the titanium oxide minerals ilmenite, rutile and zircon. Ilmenite and rutile are used to produce titanium dioxide pigment used in the production of paint, paper, plastic, textiles, rubber and pharmaceutical products. Zircons are commercially mined for the metal zirconium, and are used for abrasive and insulating purposes.

Historical reported mineral resources on the property are estimated at 2.02 billion tonnes grading 3.55% total heavy mineral, which is equivalent to approximately 71.7 million tonnes of contained heavy minerals. Confirmatory drilling and metallurgical test work will be required to upgrade the classification of the Mineral Resources in accordance with current AusIMM, SAMREC or CIM resource classification codes.

Local Partners

The local partners and senior management of Pathfinder Minerals' Mozambique subsidiary include Major-General Jacinto Veloso. General Veloso is well connected at government level having held government posts as Minister of State Security, General Director of the Intelligence Services, Minister of Economic Affairs and Minister of International Cooperation.

He is joined by Diogo Cavaco, who has worked in a number of industries from civil engineering to commercial law and is the Chairman of the Company's Mozambique subsidiary. Mr Cavaco was formerly the managing director of two specialist drilling companies.

Board Appointments

Pathfinder Minerals is delighted to make a number of appointments to the board. John McKeon has been appointed non executive chairman. John has extensive experience in the natural resources industries of Africa and the Middle East. The Company has appointed Gordon Dickie, a qualified engineer who has worked on projects across a number of industries in the Middle East, Central Asia and Africa, as a non executive director, together with Tim Baldwin, a former investment analyst with extensive knowledge of the mining sector, as a non executive director. Full details concerning the appointment of directors are contained within the Admission Document, dated 30 December 2010.

John McKeon, Chairman of Pathfinder Minerals, commented,

"Pathfinder Minerals' acquisition of these licences has exposed us to one of the most exciting mining opportunities in Africa.

Our Naburi and Moebase blocks are situated just 50km south of a titanium minerals producing mine. By moving into a feasibility phase this year, as we hope, we will look to enhance our understanding of the assets and the resource potential with a view to development in the future."

Enquiries:

Pathfinder Minerals Plc

Nick Trew, Chief Executive

Tel. [phone] (via M: Communications)

Daniel Stewart & Company Plc

Oliver Rigby or James Thomas

Tel: [phone]

M: Communications

Ben Simons or Maria Souvorov

[phone] /2327

Notes to Editors

Pathfinder Minerals, through a wholly owned subsidiary, has a 100% interest in two licences to mine heavy minerals sands, containing a potential titanium dioxide ore resource. The Naburi Licence and Moebase Licence, formerly owned by BHP Biliton, are over land located on and near the Indian Ocean coast of Mozambique. Historical reported mineral resources on the property are estimated at 2.02 billion tonnes grading 3.55% total heavy mineral, which is equivalent to approximately 71.7 million tonnes of contained heavy minerals.  Confirmatory drilling and metallurgical test work will be required to upgrade the classification of the Mineral Resources in accordance with current AusIMM, SAMREC or CIM resource classification codes.

Exploration work conducted on the licenses from the mid-1980s through to 2002 has identified significant mineralisation. Bulk sampling and metallurgical test work conducted in support of prefeasibility and feasibility studies in the mid-1990s indicates that valuable heavy minerals can be recovered using conventional dredge mining, wet concentration and dry mineral separation processes.

The Company intends to undertake a feasibility study on the licenses.

Heavy Mineral Sands

The more valuable components of a heavy mineral sands deposit include the titanium oxide minerals ilmenite, rutile and zircon. Ilmenite and rutile are used to produce titanium dioxide pigment used in the production of paint, paper, plastic, textiles, rubber and pharmaceutical products. Zircons are commercially mined for the metal zirconium, and are used for abrasive and insulating purposes.

 

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