| Tue 13 May 2008, 16:42 | | TEL - Teal Increases Quarterly Copper Concentrate |
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TEL
TEL
TEL - Teal Increases Quarterly Copper Concentrate Production In The DRC To
12,000 Tonnes
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
TEAL INCREASES QUARTERLY COPPER CONCENTRATE PRODUCTION IN THE DRC TO 12,000
TONNES
* The Lupoto copper mine in the DRC increases quarterly concentrate
production from 9,000 tonnes to 12,000 tonnes
* Exploration drilling program continuing at the Kasonta Copper Project in
the DRC with initial assay results received, of which the best include:
* 23 metres at 4.8% copper (from a depth of 25 metres); and
* 6 metres grading 4.4% copper (from a depth of 52 metres)
* Independent Technical Report increases measured and indicated resources
at Konkola North`s South and East limbs from 24.9 million tonnes at
2.36% copper to 51 million tonnes at 2.35% copper - an increase of 105%
* South and East limb inferred resources now 26.9 million tonnes from
the 47.6 million tonnes announced previously - however grade
increases by 24% from 1.98% to 2.46% copper
* The inferred resource within Area `A` now totals 219.5 million
tonnes at a copper grade of 2.64% - for 12,8 billion pounds copper
* Antofagasta Minerals acquires an initial 30% interest in two of TEAL`s
exploration properties in Zambia
* Antofagasta pays $5m for the 30% interest and has the right to a
50% interest in the properties by spending an additional $4.5m, of
which $2m is committed expenditure
* TEAL in discussion to increase debt from $50m to $85m
* The new facilities, which will remain guaranteed by ARM, would be
for a one-year period from first draw-down
In releasing results for the three month period ended March 31, 2008, 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 increased quarterly copper concentrate production from 9,000
tonnes to 12,000 tonnes.
Total run-of-mine ore produced for the quarter was 205,605 tonnes. Lower
grade ore continues to be stock-piled for future use in a processing plant,
which forms part of a pre-feasibility study that is underway for a larger
mine that will produce approximately 40,000 tonnes a year of LME `A` grade
copper cathodes.
Resource definition drilling and exploration: TEAL had previously identified
a resource with inferred historical estimates (in terms of National
Instrument 43-101) of 6.7 million tonnes grading 3.13% copper at the Lupoto
Copper Project. In addition to the 73 boreholes previously drilled by Union
Miniere du haut Katanga ("UMHK") and Gecamines, TEAL has drilled an
additional 136 boreholes for 15,589 metres. A three phase drilling campaign
at the Lupoto Copper Project, which started in March 2007, has 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. SRK Consulting (South Africa) (Pty) Limited was
appointed in March 2008 to complete an Independent Technical Report. The
result of the resource estimation and the final technical report according to
NI 43-101 is expected in May 2008.
At Kalumines` Kasonta Copper Project, situated about 1,000 meters to the east
of the Lupoto Copper Project, TEAL started exploration drilling in January
2008. The Kasonta area is defined by a clearing due to copper poisoning of
soils. This anomaly was never drilled in the past, but extensive pitting and
trenching was undertaken by UMHK and G?camines. This work previously defined
an inferred historical resource estimate, pre-dating NI 43-101, of 1,5
million tonnes grading 5.18% copper, estimated to a depth of 30 metres.
The phase 1 drilling program, now underway, aims to evaluate the copper
mineralization at Kasonta by drilling along grid lines spaced, initially, 300
meters apart. This drilling program has progressed well with 22 holes,
totalling 6,780 metres of core, already completed. The results of the first
two boreholes, for which assay results have been received, are summarized as
follows:
Borehole ID Depth from (m) Intersection (m) TCu%
KASD 134 0.00 16.00 2.73
26.50 16.50 2.02
46.80 6.70 1.92
59.50 2.30 1.55
65.50 10.50 1.97
KASD 136 0.00 10.50 3.20
25.00 23.30 4.80
52.00 6.00 4.39
133.00 2.30 1.47
The Konkola North Copper Project is a large undeveloped underground copper
resource located within the greater Konkola area. Existing infrastructure at
the Konkola North South Limb deposit includes a 423-metre deep, vertical and
concrete lined shaft, complete with head-frame, two ventilation shafts and
three main access haulage levels, interlinked with several production sub-
levels.
During the last quarter, TEAL received an Independent Technical Report,
signed-off by SRK Consulting South Africa (Pty) Limited ("SRK"), for the
resource estimation of the Konkola North Copper Project. The updated measured
and indicated resource estimation statements for the South and East Limb
areas are now:
* Combined: 51.0 million tonnes at a grade of 2.35% copper;
* South Limb: 32.3 million tonnes at a grade of 2.16% copper; and
* East Limb: 18.8 million tonnes at a grade of 2.67% copper.
Together with Area `A`, a resource of 246.4 million tonnes at 2.62% copper is
estimated in the inferred category within the total Konkola North property.
All resource categories were estimated at a 1% total copper cut-off.
The latest updated resource estimation by SRK shows that the resources
estimated in the measured and indicated categories have increased by 105% to
51 million tonnes at similar grades. This equates to an increase of over
600,000 tonnes of contained copper. Correspondingly, the resources defined
in the inferred category has decreased to 26.9 million tonnes from 47.6
million tonnes, however the copper grade has increased by 24% from 1.98%
total copper to 2.46% total copper.
The Konkola North Copper Project feasibility study, based on an operation to
mine the South and East Limb ore bodies utilizing the previously developed
infrastructure which will be re-equipped, envisages an operation producing
1,500,000 tonnes of run-of mine copper ore per annum from the existing shaft.
The feasibility study has largely been completed. The impact of the new
fiscal regime in Zambia is bow being assessed.
The recently updated resources in SRK`s Independent Technical Report relating
to the southern portion of the Konkola North property, referred to as the
greater Area `A`, show resources in the inferred category of 219.5 million
tonnes at a copper grade of 2.64% (equivalent to 12,78 billion pounds of
copper). Additional exploration drilling work is required to increase the
geological confidence of this resource, and an 18,000 metre exploration
drilling program is underway. TEAL has to date completed three boreholes and
a further four boreholes are presently in progress.
Korea Zinc Company, Limited ("KZC") was TEAL`s previous partner in various
exploration areas within the Copperbelt Joint Venture area in Zambia. During
the last quarter, TEAL acquired KZC`s 30% interest and the joint venture
agreement has now been terminated.
At the same time, TEAL signed a joint venture agreement with Antofagasta
Minerals SA ("Antofagasta Minerals") for an initial 30% interest in two of
TEAL`s exploration licences that are held in the Copperbelt Joint Venture.
Subject to certain conditions precedent, TEAL and Antofagasta Minerals will
create an incorporated joint venture to hold the two licence areas - PLLS 73
(TEAL`s Area 2) and PLLS 100 (TEAL`s Area 4) - as well as all previous
geological data and information pertaining to these two areas. Antofagasta
Minerals, which has paid TEAL $5 million for its 30% interest, has agreed to
expenditure of $4.5 million, of which $2 million is committed expenditure, to
acquire an additional 20% interest in the two exploration areas. TEAL
(Zambia) Limited, a wholly-owned TEAL subsidiary, is the current licence
holder. The two licence areas cover approximately 2,067km2 of strategically
positioned geological terrains adjacent to large operating mines on the
Zambian Copperbelt. The two large scale prospecting licences incorporated in
the new joint venture are adjacent to TEAL`s 100%-owned mining licences in
Zambia, namely: the Konkola North Copper Project mining licence area; and the
Mwambashi Copper Project mining licence area. TEAL now has 100% ownership of
the Mwambashi mining licence.
The Otjikoto Gold Project is situated within TEAL`s 100% owned Otavi
Exploration Area, which totals 3,800km2 in north-central Namibia, where the
Company discovered vein-hosted gold mineralization. The gold occurs as `free`
and often coarse gold within predominantly pyrrhotite-magnetite-pyrite veins.
During the quarter, TEAL completed an additional 25 diamond drill holes for
4,300 metres to further define the high grade gold shoots. In addition, a
further 49 reverse circulation boreholes (3,800 meters) were completed to
further increase and upgrade the indicated resource category. To date about
75% of all assays of the boreholes drilled on the Otjikoto Gold Project have
been received and a new geological model has been created. Updated resource
estimation for the Otjikoto Gold Project is commencing, and is expected to be
completed by end June 2008.
TEAL recently made application for a number of mineral exploration licences
in the Republic of Mozambique and six licences were approved of which three
are reconnaissance licences and three are exploration licences. These
applications granted are primarily for uranium, with associated metals.
Recent airborne geophysical surveys acquired by TEAL allowed for the
identification of a number of well defined radiometric targets. These include
targets for various styles of uranium mineralization, which are now held
under exclusive exploration and reconnaissance licences totaling some
1,297km2. TEAL intends to commence field reconnaissance of the exclusive
exploration licences within the next two months and initiate studies of the
reconnaissance licences. TEAL has established a new company, TEAL Mining
Mo?ambique, Limitada, to operate its exploration activities in the country.
TEAL is currently in discussions to increase its bridging facilities to a
total of $85 million. This is an increase of $35 million on the $50 million
facility that TEAL had secured. The new facilities, which will be in place
for at least a one year period, will be guaranteed by African Rainbow
Minerals Limited ("ARM"), TEAL`s major shareholder, subject to South African
Reserve Bank approval. As at March 31, 2008, the Company had available
resources of $6.0 million as well as $5 million undrawn on the Company`s $50
million bridge loan facility, which is repayable on August 31, 2008.
Over the last quarter, the Company generated an increased operating revenue
of $6.6 million (December 31, 2007: $4.1 million) following higher 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
the cost of sales of $4.2 million ($2 million), a gross profit of $2.3
million ($2.1 million) was recorded for the three months. The cost increase
is primarily as a result of higher mining costs at Lupoto following increased
production tonnages mined. After other expenses, primarily exploration and
development expenses of nearly $5 million, TEAL recorded a consolidated net
loss of $6.5 million, or $0.12 cents a share, which compares to a loss of
$4.7 million, or $0.09 loss per share, for the three months ended December
31, 2007.
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 in terms 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,
Tuesday, May 13, 2008
Sponsor: Investec Bank Limited
Date: 13/05/2008 16:42:01 Produced by the JSE SENS Department.
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