TIDMALO
RNS Number : 9562X
Alecto Minerals PLC
27 February 2017
Alecto Minerals plc / EPIC: ALO / Market: AIM / Sector:
Mining
27 February 2017
Alecto Minerals plc
("Alecto" or the "Company")
Mining Contractor Appointment and Mobilisation of Earth Moving
Equipment at Mowana
Alecto Minerals plc (AIM: ALO), the African-focused gold and
copper exploration and development company, is pleased to announce
that a mining contractor has been appointed to commence mining
operations at the Mowana Copper Project in Botswana ("Mowana" or
the "Project"). The Company is also pleased to provide an update
regarding the rapid progress being made to recommence production at
Mowana in the near term.
These latest developments demonstrate the Company's commitment
to applying a new approach at Mowana, which will enable it to
rapidly leverage the existing Measured and Indicated JORC code
compliant mineral resource inventory of 683,000 tonnes copper
("Cu") and the Inferred resource of 945,000 tonnes Cu.
Highlights:
-- Giant Transport Holdings Limited ("Giant") has been
contracted to undertake mining operations at Mowana, for an initial
period of six months, with the mining contractor's site having now
been established
-- To date, two bulldozers, two excavators and five articulated
40-tonne dump trucks ("ADT") have been mobilised to site to augment
the Company's own excavator, dozer and front end loader, with
further equipment in transit
-- Pit clean-up operations and reverse circulation ("RC") grade
control drilling can now commence testing the near-term production
targets
-- Contract for supply of fuel and lubricants signed with first
delivery anticipated in the next 2-3 weeks
-- Strong recruitment drive underway with an unprecedented
response to local recruitment advertisements - an excellent local
pool of potential candidates exists and to date [over] 150
positions have been filled
-- Higher than usual rainfalls in Botswana over the past few
[months] has necessitated the commencement of a de-watering
programme and this is progressing well
o No impact on the immediate mine plan as the near-term
production areas are outside of the flooded areas and therefore
continue to be accessible
Mark Jones, CEO of Alecto, commented:
"The arrival of our mining contractor and the earth moving
equipment on site marks the beginning of a very exciting
three-month period, which will be characterised by production,
sales and renewed activity at Mowana.
"We benefit from partnerships with commercial mining entities
such as PenMin and, utilising their strong understanding of the
Project, we have established a new approach at Mowana, which will
culminate in the existing plant being upgraded and the management
of the Project refined to deliver greater production at a lower
cost than has historically been achieved, such that production
activity is profitable even at depressed commodity prices. Whilst
the water in the pit is not ideal, it does not actually impact our
near-term production plans and with funding and metal offtake
already secured, we are well placed to progress a rapid
start-up.
"With grade control drilling due to commence next week,
recruitment of key personnel continuing and process plant start-up
planned shortly, this Project is becoming a tangible reality and I
look forward to reporting on our transformation into a copper
producer in the near future."
Click on or paste the following link into your web browser to
view a version of the announcement with photographs of the earth
moving equipment on site:
http://www.rns-pdf.londonstockexchange.com/rns/9562X_-2017-2-27.pdf
**ENDS**
For further information please visit www.alectominerals.com,
follow us on Twitter @AlectoMinerals, or contact:
Alecto Minerals plc Tel: +44 (0)20 7499 5881
Mark Jones
Strand Hanson Limited Tel: +44 (0)20 7409 3494
Andrew Emmott
Matthew Chandler
James Dance
Beaufort Securities Limited Tel: +44 (0)20 7382 8300
Jon Belliss
St Brides Partners Limited Tel: +44 (0)20 7236 1177
Elisabeth Cowell
Charlotte Page
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014.
Notes to editors:
Alecto Minerals plc is an African focused, gold and copper
exploration and development company quoted on AIM with gold
exploration projects in Mali, Botswana, Burkina Faso and Mauritania
and a development project with near-term gold production in
Zambia.
In Zambia, the historical Matala and Dunrobin gold mines have,
in aggregate, a 760,000oz Au JORC Code compliant resource estimate
in the Measured, Indicated and Inferred categories at an average
grade of 2.3g/t Au. The Company is focused on bringing Matala into
low-cost production in the near to mid-term.
In Botswana, the Company is, subject to, inter alia, shareholder
approval in due course, looking to acquire a 60% interest in the
Mowana Copper Mine, a formerly producing copper mine and plant,
which can be brought back into production at a relatively low cost.
The mine has a mineral resource inventory of 683,000 tonnes copper
("Cu") in the Measured and Indicated categories (JORC-code
compliant) with an additional 945,000 tonnes Cu in the Inferred
category. Alecto and its partners have re-modelled the Mowana mine
to ensure profitable operations even at depressed commodity prices,
leading to an internal estimate for the project's NPV of US$245
million at a copper price of US$2.50 per lb. Alecto has also agreed
a 10-year management contract for Mowana with its partners and will
receive management fees equal to 1.5% of revenue.
In Mali, the Company has secured a number of joint-venture
agreements, in-line with its strategy to retain exposure to the
value in its African gold exploration portfolio for little or no
cost; the Kossanto East project, which has an inferred JORC Code
compliant resource estimate of 6.72Mt grading at 1.14g/t Au for an
aggregate of 247,000 oz Au with a cut-off grade of 0.5g/t Au, is
under a joint venture agreement with Ashanti Gold Corp; the
Kossanto West Project is under a joint venture with Randgold
Resources Limited; and the 250 sq. km. Karan gold project in
southern Mali is under joint venture with Cora Gold Limited.
Alecto also owns the Kerboulé Project, located in the highly
prospective Birrimian-age Djibo gold belt in northern Burkina Faso,
as well as the wholly owned Wad Amour IOCG Project in Mauritania
which is at an exploration stage.
Accordingly, the Company has a strong, diversified project
portfolio with exciting exploration upside potential.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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