| Thu 12 Jul 2007, 8:03 | | TEL - TEAL - Teal reports on Kalumines` initial Lu |
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TEL
TEL
TEL - TEAL - Teal reports on Kalumines` initial Lupoto drill results and
provides update on current mining
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
July 11, 2007
TEAL REPORTS ON KALUMINES` INITIAL LUPOTO DRILL RESULTS AND PROVIDES UPDATE ON
CURRENT MINING
TEAL Exploration & Mining Incorporated (TSX-"TL") (JSE-"TEL") ("TEAL") has
announced its first set of copper drilling results from the exploration program
on the Lupoto area of the Kalumines Copper-Cobalt Project (Kalumines) in the
Democratic Republic of Congo ("DRC").
TEAL`s existing mining licence at Kalumines is located 25km northwest of
Lubumbashi and covers a surface area of some 77km2. The licence hosts four, near
surface, exposures of copper mineralization, namely Lupoto, Kasonta, Karavia and
Niamumenda. Kalumines is owned 60% by TEAL and 40% by La Generale des Carrieres
et des Mines ("Gecamines").
At Kalumines, TEAL has focussed to date on the Lupoto area where drilling
commenced in early 2007 and phase 1 open-pit mining is also underway.
Lupoto has a 6.7 million tonne historical inferred resource grading 3.13%
copper. TEAL is conducting a 5,200 metre exploration drilling program at Lupoto
to verify and update this historical resource, which was previously defined
through drilling done by Union Miniere Haut Katanga ("UMHK"), and later
Gecamines.
TEAL has drilled nearly 4,700 metres to date on the Lupoto area comprising 31
reverse circulation and 23 diamond core boreholes. The drilling information is
being geologically logged, interpreted and sampled. Initial analytical results
are now being received by TEAL. Table 1 below indicates the recent analytical
results from section lines N000 and N550.
TABLE 1:
Section Borehole From Drilled Cu (%)
Line (m) intersection
(m)
N000 Lupoto D- 6.6 2.7 11.2
001
N000 Lupoto D- 23.0 13.0 6.4
001
N550 Lupoto R- 30.0 49.0 6.8
001
N550 Lupoto R- 4.0 5.0 1.7
003
N550 Lupoto R- 65.0 25.0 5.6
005
Additional results will be communicated as and when they are available, and
following the completion of TEAL`s internal quality control process.
Borehole D-001 has confirmed the historical interpretation of the upper zones of
mineralization as 2.7 metres grading 11.20% copper, and 13 metres at 6.44%
copper in the south-eastern area of the main Lupoto structure. Results are
pending for the lower portions of this borehole.
TEAL believes the mineralization is open ended at depth. Current drilling is
targeting the shallow (above approximately 100 metres) and predominately oxide
copper enrichment. Preliminary results confirm the historical interpretation and
the high grade mineralization. Drilling is continuing to test copper
mineralization that occurs around the entire Lupoto structure.
Geological modeling is in progress to integrate the results of the drilling
program into the historical database which has been captured and validated.
Further borehole analytical results will be disclosed as they are received from
the laboratory and TEAL`s quality control and assessment has been completed. A
revised Canadian National Instrument 43-101 compliant resource estimate is also
being undertaken and will be completed when all the data has been validated.
LUPOTO MINING UPDATE
TEAL announced on May 15, 2007 that initial mining at Lupoto had started. While
the Lupoto resource remains an historical inferred resource, TEAL is targeting a
portion of this mineral resource that has already been drilled, totaling 560,000
tonnes, for immediate small-scale mining.
The Company is anticipating an operation that mines at a rate of 70,000 m3 per
month and is expected to produce over 20,000 tonnes per year of concentrate,
grading 25% copper, containing at least 5,000 tonnes of copper. The concentrate
will be produced through selective mining and, initially, upgrading by hand-
sorting.
The mining contractor at Lupoto has completed pre-stripping the overburden, and
is now building up to planned full production. The training of contract
employees conducting the hand-sorting of material to produce the concentrate has
advanced. Current mined copper grades are in line with expectations. There are
two main mineralized zones types being hand-sorted: the malachite veins and the
disseminated copper mineralization. The malachite veins yield high grade
concentrates of greater than 25% copper, while the disseminated copper
mineralization is grading 10% to 15% copper. In order to increase the recovery,
the disseminated copper mineralization is being blended with the malachite vein
material. Test work is in progress to mechanize this process to increase
efficiencies and the production rate.
TEAL intends to sell the concentrate to existing smelter operators in the DRC
and to feed TEAL`s own electric arc furnace, which is scheduled to start
commissioning over the next few weeks. This furnace, which can also treat
cobalt material, has a capacity to produce approximately 5,000 tonnes per year
of `black copper` ingots with a grading of 85% to 95% copper.
A feasibility study on a larger open pit mining operation at Lupoto is in
process and is scheduled for completion after the verification and in-fill
resource drilling, as well as the metallurgical test-work, has concluded.
These recent analytical results are certified by ALS Chemex Laboratory in
Johannesburg, South Africa an internationally accredited facility. TEAL uses
standard procedures for the drill sampling, including the appropriate use of
Certified Reference Materials, field duplicates and blank samples. Mr. Claus
Schlegel, Pr.Nat.Sci (No. 400149/90), the Company`s Vice President: Exploration
and Business Development and a 43-101 "qualified person" as defined by the
Canadian National Instrument 43-101, has reviewed the technical material
contained herein.
NOTES:
TEAL is incorporated under the laws of the Yukon, Canada and its common shares
are listed on the Toronto Stock Exchange ("TSX") and the JSE Limited ("JSE").
The common shares of the Company trade under the symbol "TL" on the TSX and
"TEL" on the JSE.
TEAL is a mineral development and exploration company with development projects
and exploration areas in Namibia, Zambia and the DRC. TEAL has a portfolio of
base and precious metal development projects and complementary exploration
areas, and the Company continues to seek other opportunities, mainly in southern
and central Africa.
TEAL has targeted four specific projects: the Konkola North and Mwambashi copper
projects in Zambia; the Otjikoto Gold Project in Namibia; and the Kalumines
Copper-Cobalt Project in the DRC. TEAL also has interests in various other
mineral licence areas in Zambia and in Namibia on which the Company continues
drilling and other exploration activities.
ADDITIONAL TEAL INFORMATION CAN BE FOUND AT: www.tealmining.com
For further details contact:
Julian Gwillim (VP: Investor Relations and Corporate Development) on +27 82 4524
389 (SA); or julian@tealmining.com,
or
Rick Menell (President and CEO) on +27 82 450 2301; or rick@tealmining.com.
Date: 12/07/2007 08:03:01 Produced by the JSE SENS Department.
