| Thu 18 Jun 2009, 12:14 | | PGL - Pallinghurst - Feasibility study confirms one of the world`s largest |
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PGL
PGL
PGL - Pallinghurst - Feasibility study confirms one of the world`s largest
unmined manganese deposits
Pallinghurst Resources Limited
Registration Number: 47656
(Incorporated in Guernsey)
ISIN: GG00B27Y8Z93
BSX share code: PALLRES
JSE share code: PGL
("Pallinghurst" or the "Company")
(formerly Pallinghurst Resources (Guernsey) Limited)
FEASIBILITY STUDY CONFIRMS ONE OF THE WORLD`S LARGEST UNMINED MANGANESE
DEPOSITS
Pallinghurst Resources Limited ("Pallinghurst") is pleased to announce that
Tshipi e Ntle Manganese Mining (Pty) Ltd ("Tshipi") has received its
feasibility study on the Tshipi Kalahari Manganese Project ("the Project").
Pallinghurst, together with its co-investors, hold 49.9% of Tshipi with
Pallinghurst currently owning an effective 10% stake in the Project.
Extensive exploration of the property has defined resources of 161 million
tonnes (SAMREC compliant) mineable by open pit methods. The ore resources are
shallower than expected, and are low in phosphorus and other deleterious
elements. A further 110 million tonnes are expected to be accessible through
underground mining methods, increasing the total resource to 271 million
tonnes.
The feasibility study, carried out by Turgis Consulting (Proprietary) Limited,
envisages the creation of a large open pit manganese mine to produce two
million tonnes per annum of "Mamatwan" type manganese ore, grading 37%. The
study confirms that the Project is economically robust, with production costs
in the lowest industry quartile.
Pallinghurst Chairman Brian Gilbertson said: "The Kalahari Basin is one of the
world`s important mineral provinces, and hosts 80% of the world`s manganese
reserves. It is from here that the bulk of the ore essential for world steel
production will be sourced for centuries to come. Happily, the feasibility
study has shown our project, in the heart of the basin, to be large, robust
and of long life".
The Project is located in an area benefiting from established road, power and
rail infrastructure and has sufficient water resources for open pit mining.
Tshipi will build its own 4MVA power plant and plans to construct a dedicated
high-speed rail loading facility.
Tshipi is engaging with Transnet and participating in the Manganese Export
Capacity Allocation process. In terms of this process, Transnet will allocate
existing rail and port capacity to current and new manganese producers. Tshipi
has been confirmed as meeting Transnet`s initial requirements for the Long
Term Allocation Process. In addition, alternative transport solutions are
presently undergoing detailed evaluation.
It will take approximately one year to produce the first saleable manganese
ore after the formal "go decision".
Pallinghurst CEO Arne H. Frandsen said: "We expect the project now to move
rapidly to a formal "go decision" as access to transport and port capacity is
finalised. This is clearly a very attractive asset which will unlock
significant value for all our stakeholders as well as potentially create some
400 new jobs".
For further information please contact:
Pallinghurst Resources
Arne H. Frandsen +44 778 752 1871
College Hill
Johannes van Niekerk +27 82 921 9110
Guernsey
18 June 2009
Investment Bank and Sponsor: Investec Bank Limited
Date: 18/06/2009 12:14:08 Produced by the JSE SENS Department.
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