Re-commencement of Mining

RNS Number : 7896G

Obtala Resources PLC

08 February 2010

 



8 February 2010

Obtala Resources plc

Re-commencement of Mining in Sierra Leone

Obtala Resources plc ("Obtala") (AIM:OBT) which invests in and develops mineral assets is pleased to announce that alluvial diamond mining has re-commenced on the newly acquired Konoma alluvial diamond operation in Sierra Leone (refer to acquisition press release dated 13 January 2010).

Since acquiring the company Obtala has completed a review and maintenance programme of both the DMS plant and the earth moving equipment. Site infrastructure and access is being repaired and upgraded, and key senior on-site staff have been appointed. Internal security procedures have been upgraded and put in place.

Mining is being conducted at two separate locations, Bolima and Bakidu, both upstream along the Bafi River from the main mine camp. Obtala has further engaged two local prospecting teams, to evaluate additional diamondiferous gravel deposits ahead of the mechanised mining fleet.

Frank Scolaro, Chairman of Obtala, commented that "Obtala's intentions are clear, that we will achieve our objective of being a revenue generating business before the end of Q2 this year. The DMS plant and the mining fleet are now operational, a distribution contract in place and we will start to recover stones shortly. The timing of this acquisition is fortuitous as the prices of rough stones continue to rise on international markets. The Board of Obtala remains confident that focused and precise low-cost mining of the alluvial diamond deposits in Sierra Leone will achieve the corporate objective of creating profitability and enhancing value of the overall portfolio of our projects."

Contact:

Simon Rollason - Managing Director Frank Scolaro - Chairman www.obtalaresources.co.uk	[phone]
Obtala Resources plc
ZAI Corporate Finance Ltd
Ray Zimmerman/ Dugald J. Carlean	[phone]

 

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