| Mon 21 Jun 2010, 15:00 | | ARQ - Anooraq Resources Corporation - Anooraq provides an operational update for |
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ARQ
ARQ
ARQ - Anooraq Resources Corporation - Anooraq provides an operational update for
Bokoni Mines
Anooraq Resources Corporation
Incorporated in British Columbia, Canada
Registration number 10022-2033
TSXV/JSE share code: ARQ
AMEX share code: ANO
ISIN: CA03633E1088
("Anooraq" or the "company")
ANOORAQ PROVIDES AN OPERATIONAL UPDATE FOR BOKONI MINES
- Labour restructuring taking effect
- Production volumes increasing
- Unit costs continuing to decrease
- Implementation of concentrator plant upgrade
Anooraq Resources Corporation ("Anooraq" or the "Company") (TSXV: ARQ; NYSE
Amex: ANO; JSE: ARQ) is pleased to provide an update on operational progress at
its flagship operation, Bokoni Platinum Mines ("Bokoni"), during the second
quarter of the current financial year ("Q2 2010").
Further to finalization of a significant labour restructure at Bokoni during the
first quarter of the current financial year ("Q1 2010") , Q2 2010 has seen the
successful implementation of the Bokoni labour restructure, resulting in
increased production volume and decreased unit costs at the operations.
Increase in stoping activities
The labour restructure focused primarily on improving the balance at Bokoni to
ensure that more employees were placed in revenue-generating activities, as
opposed to mine support services. This resulted in 11 new stoping teams being
introduced to the operations, with total stoping teams increasing from 70 to 81
during the quarter. It is anticipated that a total of 100 stoping teams will be
active at Bokoni by the end of the fourth quarter of the 2010 financial year
("Q4 2010").
Production volumes increasing
As anticipated, production volumes are beginning to increase, with a steady
upward trend in month-on-month production from April 2010 onwards. Subsequent to
the labour restructure, vamping operations have also commenced at Bokoni and
production from vamping activities should increase to approximately 6,000 tonnes
per month ("tpm") by December 2010.
The Company anticipates an increase in Q2 2010 production growth of not less
than 15% when compared with Q1 2010.
Brakfontein Merensky Project
Production at the new Brakfontein Merensky shaft has started to increase and it
is anticipated that production volumes from this shaft will increase by 100%
from its Q1 2010 production base to 30,000 tpm by the end of Q4 2010. At steady
state production, the Brakfontein operation will produce at 120,000 tpm.
Unit costs decreasing
As a result of improving production at the operations and continued stringent
cost controls, operational unit costs continue to decrease and management is
confident that the Company will meet its first cost-cutting target of ZAR 905
per tonne milled (USD 120 per tonne milled) by June 2010, as previously stated.
Implementation of concentrator plant upgrade
The recently announced Bokoni concentrator plant upgrade project was implemented
during Q2 2010. The project encountered some challenges, which resulted in
greater than anticipated mill stops as well as lower recoveries than planned.
These issues had a negative impact on the operations during the beginning of Q2
2010, but all teething problems have been addressed and the concentrator has
returned to meet design parameter targets with respect to recoveries and
throughput.
During this period there was also a change in the management team at the Bokoni
concentrator. The team is now lead by Mr. Attie de Lange, who joined Bokoni from
Anglo Platinum Limited`s Mogalakwena section where he previously was
concentrator manager for four years.
Release of full financial statements
The Company plans to release full financial statements for the three and six
months ended June 30, 2010 during August 2010.
Philip Kotze, the Chief Executive Officer of Anooraq, said, "We are pleased that
the benefits of the labour restructure are starting to demonstrate positive
results at the operations, both in volume growth and unit cost reductions. I am
also encouraged by our new management team`s approach at the concentrator during
commissioning of the upgrade project. Our next challenge will be to continue to
demonstrate a positive trend line on volume increases and unit cost reductions
as we move into the second half of the year. I am confident that we have laid
the correct foundation for our future expansion plans and that we have the right
management team in place to achieve these objectives."
For further information, please visit our website www.anooraqresources.com, call
investor services in South Africa at +27 11 883 0831 or in North America at 1
800 667 2114 or use the contacts referenced below.
Queries:
Joel Kesler
Executive: Corporate and Business Development
Office: +27 11 779 6800
Mobile: +27 82 454 5556
Russell and Associates
Charmane Russell / Nicola Taylor
Office: +27 11 880 3924
Mobile: +27 82 372 5816 / +27 82 927 8957
Macquarie First South Advisers
Melanie de Nysschen
Office: +27 11 583 2000
Mobile: +27 82 465 8969
Johannesburg
21 June 2010
Sponsor
Macquarie First South Advisers (Pty) Limited
Cautionary and Forward Looking Information
This document contains "forward-looking statements" that were based on Anooraq`s
expectations, estimates and projections as of the dates as of which those
statements were made. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as "outlook",
"anticipate", "project", "target", "believe", "estimate", "expect", "intend",
"should" and similar expressions.
Forward-looking statements are subject to known and unknown risks, uncertainties
and other factors that may cause the Company`s actual results, level of
activity, performance or achievements to be materially different from those
expressed or implied by such forward-looking statements. These include but are
not limited to:
- uncertainties and costs related to the Company`s exploration and development
activities, such as those associated with determining whether mineral resources
or reserves exist on a property;
- uncertainties related to feasibility studies that provide estimates of
expected or anticipated costs, expenditures and economic returns from a mining
project; uncertainties related to expected production rates, timing of
production and the cash and total costs of production and milling;
- uncertainties related to the ability to obtain necessary licenses, permits,
electricity, surface rights and title for development projects;
- operating and technical difficulties in connection with mining development
activities;
- uncertainties related to the accuracy of our mineral reserve and mineral
resource estimates and our estimates of future production and future cash and
total costs of production, and the geotechnical or hydrogeological nature of ore
deposits, and diminishing quantities or grades of mineral reserves;
- uncertainties related to unexpected judicial or regulatory proceedings;
- changes in, and the effects of, the laws, regulations and government policies
affecting our mining operations, particularly laws, regulations and policies
relating to
- mine expansions, environmental protection and associated compliance costs
arising from exploration, mine development, mine operations and mine closures;
- expected effective future tax rates in jurisdictions in which our operations
are located;
- the protection of the health and safety of mine workers; and
- mineral rights ownership in countries where our mineral deposits are located,
including the effect of the Mineral and Petroleum Resources Development Act
(South Africa);
- changes in general economic conditions, the financial markets and in the
demand and market price for gold, copper and other minerals and commodities,
such as diesel fuel, coal, petroleum coke, steel, concrete, electricity and
other forms of energy, mining equipment, and fluctuations in exchange rates,
particularly with respect to the value of the U.S. dollar, Canadian dollar and
South African rand;
- unusual or unexpected formation, cave-ins, flooding, pressures, and precious
metals losses (and the risk of inadequate insurance or inability to obtain
insurance to cover these risks);
- changes in accounting policies and methods we use to report our financial
condition, including uncertainties associated with critical accounting
assumptions and estimates;
- environmental issues and liabilities associated with mining including
processing and stock piling ore;
- geopolitical uncertainty and political and economic instability in countries
which we operate; and
- labour strikes, work stoppages, or other interruptions to, or difficulties in,
the employment of labour in markets in which we operate mines, or environmental
hazards, industrial accidents or other events or occurrences, including third
party interference that interrupt the production of minerals in our mines.
For further information on Anooraq, investors should review the Company`s annual
Form 20-F filing with the United States Securities and Exchange Commission
www.sec.com and home jurisdiction filings that are available at www.sedar.com.
Date: 21/06/2010 15:00:02 Produced by the JSE SENS Department.
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