| Mon 23 Apr 2007, 17:05 | | TEL - TEAL Exploration & Mining Inc - Resource cat |
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TEL
TEL
TEL - TEAL Exploration & Mining Inc - Resource categories revised at
Konkola North, and feasibility
studies well advanced
TEAL Exploration & Mining Inc.
Corporate Access Number: 31403
ISIN: CA8781511099
(Incorporated in Yukon, Canada on 1 June 2005)
SA Company Registration Number: 2006/003229/10
JSE share code: TEL
JSE short name: TEAL
For release at 17:00:
Monday, April 23, 2007
* RESOURCE CATEGORIES REVISED AT KONKOLA NORTH, AND
* FEASIBILITY STUDIES WELL ADVANCED
Resources upgraded into Measured and Indicated categories
Feasibility studies for the development of the South and East Limb ore
bodies nearing completion
TEAL Exploration & Mining Incorporated (TSX-"TL") (JSE-"TEL") ("TEAL" or
the "Company") has today announced Measured and Indicated resources for the
South and East Limbs of Konkola North, and provided an update on the
Konkola North Copper Project feasibility study.
The Konkola North property consists of a single large-scale mining licence
covering an area of 44 square kilometres. The Konkola North copper resource
is the second-largest known copper resource on the Zambian Copperbelt. TEAL
currently has 100% ownership of the Konkola North Copper Project with ZCCM
Investment Holdings plc, a company controlled by the Zambian government,
retaining the option of buying a stake of up to 20%.
TEAL had previously reported inferred mineral resources of 78.8 million
tonnes at 2.14% copper at Konkola North for the South and East Limb areas
(see Table 1). The updated Measured and Indicated Resource statements for
these areas are now (see Table 2):
* Combined: 24.9 million tonnes at a grade of 2.36% copper;
* South Limb: 11.3 million tonnes at a grade of 2.35% copper; and
* East Limb: 13.5 million tonnes at a grade of 2.37% copper.
A further resource of 47.7 million tonnes at 1.98% copper is estimated in
the Inferred category within these areas.
RESOURCE ESTMATION UPDATE
Mining Consulting Services, a subsidiary of Gijima AST Limited
("GijimaAST"), has completed data validation, geological modelling studies
and a geostatistical resource model of the Konkola North East and South
Limb deposits.
The GijimaAST geostatistical resource estimation model uses the existing
resource blocks previously defined in the Technical Report that was
published at the time of TEAL`s initial public offering in November 2005,
completed by RSG Global (Pty) Limited. At that time, the entire Konkola
North resource was categorized as an Inferred resource. The current
resource estimation conducted by GijimaAST uses unfolding techniques and
applies ordinary kriging.
TEAL is currently re-defining the resource blocks based on geological
boundaries and priorities of the proposed mining schedules for the South
and East Limb ore bodies. A further resource estimate and optimisation
study is being undertaken by GijimaAST.
Table 1: Previously Disclosed Inferred Mineral Resource Statement
Deposit Mineral Tonnes Total Contained
Resource (millions) Cu Copper
Category (%) (Mlb)
East Inferred 29.43 2.52 1,636
Limb
South Inferred 49.40 1.92 2,091
Limb
Total 78.83 2.14 3,727
Table 2 (a): New Resource Estimation Statement
Deposit Mineral Tonnes Total Contained
Resource (millions) Cu Copper
Category (%) (Mlb)
East Measured 10.42 2.40 551
Limb
Indicated 3.14 2.24 155
Subtotal & 13.56 2.37 706
mean
Inferred 17.20 2.65 1,004
South Measured 4.42 2.40 234
Limb
Indicated 6.89 2.32 352
Subtotal & 11.32 2.35 586
means
Inferred 30.55 1.60 1,077
Table 2 (b): New Resource Totals
South Total 24.88 2.36 1,292
and Measured and
East Indicated
Limbs
Total 47.75 1.98 2,081
Inferred
Area `A` and Area `A` Extension (see Figure 1)
Previously reported resources relating to the southern portion of the
Konkola North property indicate an inferred mineral resource of
approximately 107 million tonnes (in Area `A`) and 63 million tonnes (in
Area `A` Extension) at copper grades of 2.30% and 3.88%, respectively.
Additional exploration drilling work is required to increase the geological
confidence of these resources. TEAL has issued tenders to four drilling
companies to undertake an 18,000 metre drilling program in the Area `A`
Extension. This drilling will explore and further define the high grade
intersections returned by boreholes in the Area `A` Extension. Responses to
drilling tenders have been received and are presently being evaluated with
drilling scheduled to commence in May 2007.
SRK Consulting (South Africa) (Pty) Limited ("SRK") reviewed drill core
previously drilled in the Area `A` Extension in order to undertake an
initial geotechnical appraisal of the geological formations. Murray &
Roberts Cementation (South Africa) (Pty) Limited completed a conceptual
engineering design work for a 1,200 metre deep shaft, with costing, and
TEAL subsequently completed a financial scoping model of a conceptual mine,
and a metallurgical processing facility with related infrastructure. The
positive result of this assessment study has contributed to the motivation
of the 18, 000 metre exploration drilling program for the Area `A`
Extension.
FEASIBILITY STUDY UPDATE
Existing infrastructure at the Konkola North South Limb deposit includes a
423-metre deep, vertical and concrete lined shaft, with head-frame, two
ventilation shafts and three main access haulage levels, interlinked with
several production sub-levels.
The Konkola North Copper Project feasibility study, based on an operation
to exploit the South and East Limb ore bodies, remains on-track and the
completed study is expected by mid-2007. The study for this mine will also
include an assessment of the viability of initial mining from the South
Limb`s existing shaft and accessible workings and possibly toll-processing
the ore produced. The technical aspects and economics of this `rapid-entry`
study are largely complete and are currently being audited.
Following the installation of an extraction fan in one of the ventilation
shafts to ensure proper ventilation in the old mine, a winder was installed
during August 2006 and the first underground inspection occurred in
September 2006. Access to the shaft bottom, haulages and sub-levels has now
been secured. A second access is in place from No. 3 level to surface,
through the old workings and the shaft ladder-way.
Mapping of all cross-cuts and sampling of the orebody is advanced, while a
detailed mine survey is being completed. During November 2006, TEAL
undertook the first blasting underground in over 40 years on the No. 2
level to extract a 50 tonne copper ore sample for confirmatory
metallurgical test work. A total of six geotechnical/geohydrological drill
holes on No. 2 level were completed, and additional drill holes from No. 3
level are in the final stages. `Packer` test work for hydrological studies
in the footwall and hanging wall has also been completed.
Geotechnical and geo-hydrological drill holes to assess, among other
factors, possible impacts on the position of waste rock dumps and tailings
have been completed.
As part of the feasibility study, Murray & Roberts Cementation (South
Africa) (Pty) Limited completed an assessment of the shaft engineering
infrastructure. Mining Consulting Services has completed the mine design,
planning, ore extraction scheduling, costing and related studies. Grinaker
LTA, a subsidiary of Aveng Limited, has provided the costing information
for a decline on the East Limb ore body and Bluhm Burton Engineering (Pty)
Ltd has completed the ventilation design work for the East and South Limb
mines. Dowding Reynard & Associates (Pty) Ltd was contracted to undertake
the plant design, costing and related engineering studies. These studies
have been completed. SRK has completed its work on the Environmental Impact
Study for the Konkola North Copper Project and Geotail has also completed
the design of the tailings and waste rock facility.
The necessary permitting and licensing negotiations are in progress and a
power agreement is being negotiated with the Copperbelt Energy Corporation.
Mr. Claus Schlegel, Pr. Sci. Nat. (No. 400149/90), TEAL`s Vice President:
Exploration and Business Development, is the "qualified person" for the
content of this press release for purposes of National Instrument 43-101.
ends
More information about TEAL is available at www.tealmining.com
For further details contact:
Julian Gwillim (VP: Investor Relations and Corporate Development) on
+27 (0) 82 4524 389; or julian@tealmining.com,
or
Rick Menell (President and CEO) on +27 82 450 2301; or rick@tealmining.com.
Date: 23/04/2007 17:05:01 Produced by the JSE SENS Department.
