| Fri 25 Jul 2008, 15:10 | | TEL - Teal - Teal Reports More High-Grade Copper Intersections At Konkola North |
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TEL
TEL
TEL - Teal - Teal Reports More High-Grade Copper Intersections At Konkola North
Area `A`
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 REPORTS MORE HIGH-GRADE COPPER INTERSECTIONS AT KONKOLA NORTH AREA `A`
Seven boreholes for 11,400 metres of a 18,000 metre exploration drilling program
on Konkola North`s Area `A` completed
Selected results include:
- 9.74m at 3.87% copper
- 9.75m at 5.62% copper
- 5.03m at 4.25% copper
- 11.71m at 4.17% copper
Four exploration drill rigs remain in progress
TEAL Exploration & Mining Incorporated (TSX-"TL") (JSE-"TEL") ("TEAL" or the
"Company") has announced more drilling results from its ongoing exploration
program at the Company`s Konkola North property in Zambia.
The previously released historical inferred mineral resource was estimated at
107,157 million tonnes at 2.30% total copper for Area `A` and 63,245 million
tonnes at 3.88% total copper for Area `A` Extension. TEAL now refers to the
combined area as Area `A`. In March 2008, a revised resource estimation was
completed according to Canadian National Instrument 43-101 ("NI 43-101") by SRK
Consulting (South Africa) (Pty) Limited ("SRK") defining a total inferred
resource of 219,500 million tonnes at 2.64% total copper.
TEAL appointed two international drilling companies to undertake the drilling in
Area `A` and four drill machines are presently drilling. Drilling commenced in
September 2007 and to date an additional seven boreholes were completed for
11,400 metres. Drilling centres are spaced 600 metres apart and infill drilling
on 300 metre spacing has commenced. The assay results of drill holes are shown
in Table 1:
Table 1: Assay results Area `A` (1% T Cu cut-off)
Borehole Depth from True Total Cu AS Cu
no. (m) Thickness (%) (%)
(m)
KLB 82* 749.81 9.74 3.82 2.57
Including: 7.00 4.79 3.08
KLB 85* 816.00 12.28 2.37 0.68
Including: 2.20 4.90 3.09
KLB 91* 1038.76 6.20 1.87 0.48
KN 10* 905.54 0.96 1.07 0.96
KN 2* 1131.05 8.87 3.12 0.28
Including: 4.14 4.31 0.35
KN 16* 1280.34 9.75 5.62 3.08
KN 1A* 1163.09 9.81 2.10 0.09
KN 39 No
intersection
KN 40 942.58 11.71 4.17 0.91
Including: 6.42 6.26 0.84
KN 41 D2 1055.00 8.18 3.62 0.34
Including 5.03 4.25 0.47
KN 42 934.65 6.05 1.41 0.09
KN 42 D2 932.00 8.66 1.11 0.13
KN 43 1169.60 9.86 2.31 0.09
KN 44 Drilling in
progress
KN 45 972.20 6.54 1.98 0.18
KN 46 Drilling in
progress
KN 47 727.00 3.39 1.73 0.46
KN 48 Drilling in
progress
* Previously drilled boreholes
The Konkola North property is situated in Zambia in the northern part of the
Copperbelt, bordering the Democratic Republic of the Congo. The 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 has completed a feasibility study on the resources defined in the South and
East Limb areas of the northern portion of the property, where the copper
mineralization is shallow, steeply dipping and accessible through the No. 2
shaft (please refer to the TEAL press release dated April 10, 2008 and which can
be found at www.tealmining.com).
To the southern portion of the Konkola North property, the mineralization
continues into Area `A`, which is now being evaluated through further drilling.
The copper mineralization is generally transgressive and confined to the OS1
Member of the Nchanga Formation, elsewhere known as the Ore Shale Formation. In
Area `A`, the mineralized OS1 Member is near horizontal to shallow dipping and
extends to a depth of 1,300 metres.
Area `A` Exploration
SRK reviewed drill core previously drilled in the Area `A` in order to undertake
an initial geohydrological and 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 to further evaluate the resources
in Area `A`.
TEAL has appointed Sphynx Consulting as an independent consultant to conduct the
database verification, geological modelling, ore body modelling and resource
estimation work. TEAL has appointed SRK as the Qualified Person to complete the
Independent Qualified Persons Report on the Konkola North Copper Project. These
recent analytical results are certified by ALS Chemex 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.
FEASIBILITY STUDY UPDATE
Existing infrastructure at the Konkola North South Limb area 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 is based on an operation to
exploit the South and East Limbs, utilizing the previously developed
infrastructure that will be re-equipped. TEAL has purchased a Koepe `men and
material` winder, a rock winder and a SAG mill. Considering the readily
available infrastructure, TEAL envisages to commence sub-level open stope mining
after about 15 months following project release.
The recently upgraded resource base within the South and East Limb areas,
independently verified by SRK, totals 51 million tonnes at a grade of 2.35%
copper. This resource is now used for mine planning and scheduling, together
with a review of capital and operating costs, to finalize an amended feasibility
study.
TEAL has undertaken extensive metallurgical test work and the feasibility study
includes the construction of a metallurgical plant to produce two million tonnes
of copper concentrate for the life of mine resulting in a steady state refined
copper metal production of 25,000 tonnes per year.
TEAL has had extensive discussion with the Environmental Council of Zambia and a
final Environmental Impact Study has been approved. TEAL has concluded a letter
of commitment with the Copperbelt Energy Corporation for the supply of
electricity. An agreement, which remains subject to TEAL Board approval, has
been signed with Chambishi Copper Smelter Zambia, Limited for the further
processing of copper concentrates. Discussions are continuing with the Zambian
authorities regarding the recently legislated fiscal regime.
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-
NOTE:
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, the Democratic Republic of Congo
("DRC"), and Mozambique. 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 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
Friday, July 25, 2008
Sponsor: Investec Bank Limited
Date: 25/07/2008 15:10:02 Produced by the JSE SENS Department.
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