| Thu 14 Feb 2008, 15:00 | | TEL - TEAL Exploration & Mining Inc.- Kalumines reports excellent operational |
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TEL
TEL
TEL - TEAL Exploration & Mining Inc.- Kalumines reports excellent operational
results and exploration drilling program completed
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 immediately:
Thursday, February 14, 2008
KALUMINES REPORTS EXCELLENT OPERATIONAL RESULTS AND EXPLORATION DRILLING PROGRAM
COMPLETED
* First operating revenue from sales of copper concentrates from Lupoto in
the DRC, which has reached planned production levels
* The phase 1 mine has achieved annualized production levels with over
11,000 tonnes of copper concentrates produced over the last six months
* Exploration drilling completed at Lupoto
* Significant results reported and resource estimation advanced
* Deeper drilling at Lupoto intersects massive copper sulphide
mineralization from 190m to 223m
* Feasibility study for the Konkola North Copper Project in Zambia
presented to the Board
* First drilling intersection of 11.71m @ 4.17% received from the resource
upgrade program on Konkola North`s Area `A`
* Results compare favorably with historical drill results
* Exploration drilling at the Otjikoto Gold Project in Namibia delivers
additional high-grade results, including 3.33g/t gold over 17.1m and
9.53g/t gold over 16.2m
* Pre-feasibility study advanced with completion expected in April 2008
In releasing results for the period ended December 31, 2007, TEAL Exploration &
Mining Incorporated (TSX-"TL") (JSE-"TEL") ("TEAL" or the "Company") announced
that its Lupoto mine in the Democratic Republic of Congo ("DRC") has been
commissioned and planned production levels are being achieved.
The initial production target at Lupoto, which forms part of TEAL`s Kalumines
mining licence area, was to produce 20,000 tonnes per year of concentrate. The
actual production achieved during the quarter ended December 31, 2007, was
slightly more than 9,000 tonnes of concentrate, grading 25% copper, and over
11,000 tonnes over the six months ended December 31, 2007. At full production,
and together with other sales contracts being negotiated, a revised mining rate
is now planned at 140,000m3, or 350,000 tonnes, a month of mineralized and waste
material.
Approximately 50,000 tonnes a month of mineralized material will pass through
the sorting process and the lower grades, of 3% copper, are being stock-piled
for future use in a processing plant, which is under investigation through a
feasibility study for a larger mining operation.
The table below provides an operating summary for the six and three months ended
December 31, 2007:
Six Months ended Three months ended
Dec 31, 2007 Dec 31, 2007
DRC Mining
Run-of-mine material m3 702,723 420,097
Mineralized material t 229,231 158,828
Copper concentrate t 11,013 9,060
produced
Copper sold
- Lumpy material t 5,543 5,543
- Fine material t 699 699
Grades (in sold product)
- Lumpy material % 25,31 25,31
- Fine material % 17,77 17,77
Processing
Ore input t 937 937
Ore input grade % 23.01 23.01
Processing cost per ton US$ 11,642 11,642
Copper Blister produced t 139 139
Copper Blister Grade % 94.80 94.80
Copper Blister sold t 104 104
Copper aerage net selling US$ 5,911 5,911
price
Copper LME price USD$ 7,000 7,000
The furnace is in the build-up phase presently and it is anticipated that 1800
tonnes a month will be fed into the furnace in the near future. The processing
costs will substantially decrease as the furnace becomes fully operational.
Laboratory test work on the leaching of the fine-grained copper material
("fines") has shown encouraging results. The construction of a demonstration
plant to leach the fines and to produce a final product, through a cementation
process, has started commissioning. A pre-feasibility study on a large open pit
mining operation at the Lupoto Copper Project, together with a processing
facility to produce up to 40,000 tonnes a year of LME `A` grade copper cathodes,
is in progress and management expects this to be completed during April 2008.
The Commission, established to review mining licences and other agreements in
the DRC, has not as yet issued a final report. The mining title held by TEAL,
through Kalumines, has not been questioned and the Company awaits formal release
following the Cabinet`s consideration.
All three phases of TEAL`s exploration drilling campaign at the Lupoto Copper
Project, which started in March 2007, have now been completed. The first two
drilling phases were undertaken to confirm and verify the historical mineral
resource estimate and to undertake infill drilling to upgrade the mineral
resource confidence level. The third phase of drilling was aimed at increasing
the resource along strike in areas previously not drilled. The Lupoto Copper
Project resource is now being reviewed by SRK Consulting to produce an
Independent Competent Persons report compliant with the National Instrument 43-
101 ("NI 43-101"). The drilling results can be viewed in detail by accessing:
www.tealmining.com
Highlights from selected assay results for the Lupoto Copper Project are:
BOREHOLE Depth from Drill Copper Cobalt
(m) thicknes* (%) (%)
(m)
LPO151 79 23.8 6.80
Including 12.8 0.20
LPD009 48 10 2.18
Including 4 0.75
LPO147 30 15.6 4.31
LPR007 48 34 7.12
LPR008 75 18 6.47
LPDR007 89 24 2.69
LPDR007 121 7 4.06
LPO112 4.5 21.2 4.78
LPR009 11 21 4.10
LPR009 45 8 7.19
Including 6 0.12
LPBR022 99 13 4.47
LPDR023 44 8 9.87
LPDR002 100 7 8.28
LPDR002 110 27 2.88
Including 17 0.32
PDR016 57 15 2.02
LPO124 76 14.3 3.07
LPR002 62 7 6.07
Including 3 0.82
LPRR049 125 18 4.13
LPRR019 77 6 2.75
LPRR019 105 15 2.48
LPR020B 37 43 5.24
Including 13 0.15
LPRR005 57 40 4.05
Including 13 1.00
LPRR006 20 33 1.47
Including 9 0.15
LPRR012 4 28 2.71
Including 7 0.36
LPRR011 57 24 5.12
Including 8 0.96
LPD010 61 6 2.04
Including 2 0.20
LPO142 50 8.6 1.11
Including 1.5 0.20
* "True widths" intersections will be reported on finalization of
the 43-101 compliant resource.
The Lupoto Copper Project geological structure occurs over a distance of
approximately 3.7 kilometres.
Borehole LPR/D 0410, collared at some distance to the east on line 700N to
intersect the target geology at depth, intersected massive sulphide copper
mineralization, mainly chalcopyrite, between vertical depths of 190 metres to
223 metres. This borehole indicates that the copper mineralization is well
developed at depth in this area, but changes from predominantly oxide copper to
massive sulphide copper. Assays are being awaited from this intersection, and
additional drilling will be undertaken to evaluate further the potential of
sulphide copper mineralization.
TEAL has appointed Sphynx Consulting as an independent consultant to conduct the
database verification, geological modeling, ore body modeling and resource
estimation work. A geological model has been created and the mineralized area
has already been modeled for the Lupoto Copper Project between grid lines 800N
on the western limb to 800N on the eastern limb. Geological modelling to the
1350N line on the eastern limb is in progress. Resource estimation work has also
commenced. TEAL has appointed SRK Consulting as the Qualified Person to complete
the Independent Qualified Persons Report on the Lupoto Copper Project. These
recent analytical results are certified by ALS Chemex Laboratory in
Johannesburg, South Africa an internationally accredited facility.
TEAL conducted reconnaissance drilling over the Karu occurrence on its Kalumines
mining licence. The occurrence occurs about 5km south of the Lupoto Copper
Project. Three boreholes were completed and encouraging copper and cobalt
results were received. Some of the drilling highlights include:
* 21 metres grading 2.57% copper, including 20 metres at 0.35% cobalt,
* 39 metres grading 3.25% copper, including 15 metres at 0.46% cobalt; and
* 16 metres grading 0.33% cobalt.
"True widths" intersections will be reported on finalization of the 43-101
compliant resource.
TEAL Metals purchases concentrate from the Lupoto Copper Project. Approximately
1,800 tonnes a month of concentrates will eventually be smelted in TEAL Metals`
electric-arc furnace. Furnace operations were halted during late December 2007
due to refractory concerns. After the refractory re-lining, the start-up was
hampered by power disruptions, which have since been resolved and the furnace is
being re-commissioned.
The feasibility study for the Konkola North Copper Project in Zambia has been
presented to the Board of Directors for review and consideration.
TEAL is currently undertaking an 18,000 metre drilling program to upgrade the
resource at Konkola North`s Area `A`. The first intersection was received
during the quarter under review. The assays of the mineralised intersection
returned copper grades of 4.17% over a true width of 11.71 metres. The drilling
program is continuing.
TEAL recently announced further high grade drilling results from its Otjikoto
Gold Project in Namibia.
The results include:
* OTR196 from 38 metres to 57 metres grading 3.33g/t gold over a true
thickness of 17.1 metres; and
* TC40 from 68 metres to 86 metres grading 9.53g/t gold over a true thickness
of 16.2 metres.
This `western high grade zone` has now been shown to extend some 700 metres `up
plunge` and along strike from its initial intersection in borehole OT88. The
zone is also known to continue down plunge from OT88, to the southwest, for a
further 250 metres strike extension.
The existing, compliant (National Instrument 43-101), Otjikoto resource
comprises 460,000 ounces of gold in the indicated category or 11.8 million
tonnes grading 1.21g/t and an additional 1.32 million ounces of gold in the
inferred category, or 32.1 million tonnes grading 1.28g/t. The total contained
gold estimate, as of the September 11, 2007 independent Technical Report
compiled by SRK Consulting (South Africa) (Pty) Limited, is 1.78 million ounces
of gold. TEAL anticipates completing updated resource estimations by mid-2008.
The Otjikoto Gold Project is situated within TEAL`s Otavi Exploration Area,
which totals some 3,800km2 in northern-central Namibia, where TEAL discovered
the vein-hosted, `free` and often coarse particulate gold mineralization. The
deposit is located close to well developed infrastructure.
The current phase of exploration and infill drilling comprises some 16,000
metres of reverse circulation ("RC") drilling and 9,500 metres of diamond core
drilling. In total, 201 RC boreholes and 65 core boreholes have been completed
in the infill drilling area. This drilling is designed to increase the indicated
resources and to provide an area where mine planning and scheduling can be
undertaken. The drilling program is nearing completion.
Additional drilling is ongoing to delineate the higher grade zones previously
intersected within the south-western area of the Otjikoto area. A number of
boreholes are also targeting the expansion of the existing resource base of the
deposit.
TEAL has started a pre-feasibility study on Otjikoto and anticipates the
completion of the study by mid-2008. Depending on the result of this study, it
will be followed by the immediate initiation of a bankable feasibility study.
Over the last quarter, the Company generated its first operating revenue
following sales of copper concentrates from the Lupoto Copper Project in the
DRC, which reached full production towards the end of the 2007 calendar year.
After deducting cost of sales of $2.0 million, a gross profit of $2.1 million
was recorded for the three months from the DRC mining operation. After deducting
other expenses, primarily exploration and development expenses of $7 million,
the bulk of which was spent in Zambia, partially offset by a gain on dilution of
interest in Avdale, TEAL recorded a consolidated net loss for the three months
ended December 31, 2007 of $4.8 million, or $0.09 loss per share. This compares
to a net loss for the three months ended September 30, 2007 of $10.4 million, or
$0.19 loss per share.
As at December 31, 2007, the Company had available resources of $15.0 million of
the $50 million bridge loan facility that was secured with Standard Chartered
Bank, which is being guaranteed by TEAL`s major shareholder, African Rainbow
Minerals Limited, and is repayable on August 31, 2008.
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
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 specific core projects: the Konkola North Copper Project 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.
Sponsor: Investec Bank
Date: 14/02/2008 15:00:01 Produced by the JSE SENS Department.
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