| Fri 1 Oct 2010, 12:03 | | MTX - Metorex Limited - Operational Update - Quarter Ended 30 September 2010 |
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MTX
MEMTX
MTX - Metorex Limited - Operational Update - Quarter Ended 30 September 2010
Metorex Limited
(Incorporated in the Republic of South Africa)
(Registration number 1934/005478/06)
Share code: MTX
ISIN: ZAE000022745
Issuer code: MEMTX
("Metorex" or "the Company" or "the Group")
OPERATIONAL UPDATE - QUARTER ENDED 30 SEPTEMBER 2010
Quarterly production highlights:
- Copper production up by 13% overall to 13,959 tons
- Cobalt production up by 36% to 1,074 tons
- Ruashi copper and cobalt production increases 18% and 37% respectively
- Drilling confirms thickness and grades of Kinsenda orebody
- Mineralisation depth extension confirmed at Musonoi
Terence Goodlace, Chief Executive Officer said: "Operational improvements and
project development continue to make good progress at Metorex. It is pleasing
to note the 18 percent improvement in copper production and 37 percent in cobalt
production at Ruashi for the quarter and were it not for Democratic Republic of
the Congo ("DRC") power interruptions at the end of the quarter the results
would have improved even further. Geological confidence continues to improve as
reflected in drill results for both the Kinsenda and Musonoi growth projects."
Group production statistics - Quarter ended 30 September 2010
Commodity Unit Quarter Quarter Quarterly
ended June ended Change
2010 September
2010
Copper - Ruashi (t) 7 280 8 581 +18%
Copper - Chibuluma (t) 4 328 4 309 -
Copper - Sable (t) 723 1 069 +48%
Copper - total (t) 12 331 13 959 +13%
Cobalt - Ruashi (t) 777 1 067 +37%
Cobalt - Sable (t) 14 7 -50%
Cobalt - total (t) 791 1 074 +36%
Kinsenda Mine Resource drilling update
An infill drilling programme has been completed on the mothballed Kinsenda Mine
in the pedicle region in DRC as part of the bankable feasibility study ("BFS")
planned for completion in Q1-2011. Approximately 60% of the analytical results
have been returned and these confirm the thickness and grade of the Lower Ore
Zone ("LOZ") and the Lower Lower Ore Zone ("LLOZ") with numerous high grade
copper intersections in the western portion of the orebody.
This programme was initiated in April 2010 to improve the geological confidence
in the historical data and to confirm the orebody grades and thicknesses in the
area, targeted for mining in the first 5 years of production.
20 holes over a total of 6,778 meters successfully intersected the ore zones by
completion of the programme on 23 August 2010. On-site geological management
was carried out by GeoQuest, who are an independent geological consultant based
in Lusaka, Zambia. All holes have been logged and sampled with best practice
assay quality assurance and quality control ("QA / QC") measures put in place
prior to the commencement of sampling. All samples were submitted to the ALS
Chemex laboratory in Johannesburg, South Africa for analyses and the results
have been captured in a relational database.
QA / QC results from ALS Chemex have been independently verified by Independent
Geological Services (Pty) Ltd ("IGS") and found to comply with acceptable
industry standards.
A summary of all results received to date is provided in Table 2. These
intersections are selected above a 1% copper grade limit with all intersections
reported as down-hole intersection lengths.
Some significant new results received include:
MKD001 - 12.5 metres at 7.41% copper from 277.0 metres;
MKD008 - 8.9 metres at 7.34% copper from 329.5 metres;
MKD010 - 12.5 metres at 6.07% copper from 313.5 metres;
MKD011 - 13.5 metres at 5.13% copper from 310.5 metres; and
MKD013 - 11.0 metres at 3.90% copper from 291.3 metres.
Table 2 - Kinsenda Infill Diamond Drilling Results as of 30 September 2010
Hole Coordinates Incl. E.O.H. From To Length Cu Zone
Number x y (deg.) (m) (m) (m) (m) (%)
MKD001 604169 8644335 -90 319.3 262.00 268.80 6.80 2.79% LOZ1
and 277.00 289.50 12.50 7.41% LOZ2
MKD002 604376 8644300 -90 330.6 270.30 282.80 12.50 1.40% LOZ
including 270.30 273.30 3.00 3.79% LOZ
MKD003 603982 8644337 -90 360.4 291.25 293.25 2.00 2.00% LOZ1
and 307.00 310.50 3.50 5.69% LOZ2
and 315.25 316.75 1.50 1.20% LOZ3
and 345.10 346.25 1.15 1.56% LLOZ
MKD004 604287 8644444 -90 317.9 228.88 232.38 3.50 3.69% LOZ1
and 246.15 248.15 2.00 2.35% LOZ2
MKD005 604372 8644391 -90 305.9 241.00 245.50 4.50 3.36% LOZ
MKD006 604457 8644338 -90 299.8 216.30 220.80 4.50 1.77% LOZ1
and 228.80 236.30 7.50 3.80% LOZ2
MKD007 604404 8644253 -90 323.94 267.50 270.50 3.00 3.55% LOZ1
and 276.00 278.16 2.16 1.57% LOZ2
MKD008 603763 8644442 -90 355.5 329.50 338.40 8.90 7.34% LLOZ
MKD010 604213 8644137 -90 353.0 313.50 326.00 12.50 6.07% LOZ
MKD011 604129 8644190 -90 359.8 310.50 324.00 13.50 5.13% LOZ
including 310.50 319.00 8.50 7.54% LOZ
MKD013 604005 8644365 -70 385.0 291.30 302.30 11.00 3.90% LOZ
including 292.00 297.30 5.30 5.75% LOZ
and 323.00 324.84 1.84 2.00% LLOZ
MKD015 603572 8644136 -70 377.4 349.20 352.56 3.36 7.84% LOZ
Notes:
1. All intersections reported as down-hole intersection lengths.
2. Mineralised intersections selected above 1% copper.
3. Core losses and missing samples within intersections treated as zero grade.
Snowden Mining Industry Consultants (Pty) Limited ("Snowdens") have been
contracted to complete a revised geological resource model, with a revised
resource statement anticipated to be released by December 2010. Snowdens have
also been contracted to complete a detailed mine design and schedule for the
BFS, with completion of the BFS document targeted for Q1-2011.
Musonoi (Dilala East) Resource drilling update
Extension and infill drilling has continued to deliver ore grade intersections
and mining widths at the Musonoi (Dilala East) Project located in Kolwezi,
DRC. The updated mineral resource estimate released in March 2010 took the
resource depth to 500m below surface and was based on data available as at the
end of November 2009. Since then, results for an additional 6 sulphide
intersections within the Dilala East orebody have been returned and have
extended the resource to 650m below surface. The orebody exhibits remarkable
consistency in terms of grade, thickness and continuity.
Assay samples have been submitted to ALS Chemex in Johannesburg with QA / QC
results independently verified and approved for resource estimation by IGS.
Some significant new results below 400m depth include:
MM54 - 20.7 metres at 5.86% copper and 0.17% cobalt from
409 metres and a further 12.3 meters at 3.15% copper and
1.38% cobalt from 456.7 meters.
MM57 - 15.0 metres at 4.25% copper and 0.40% cobalt from
517 metres and a further 20.4 meters at 3.85% copper and
1.28% cobalt from 560.9m
Table 3 - Additional Dilala East Diamond Drilling Results available since
December 2009
Hole Coordinates Incl. E.O.H. From To Length Cu Co Zone
No. (deg) (m) (m) (m) (m) (%) (%)
MM49 8817181 332678 -60 342.7 273.00 293.30 20.30 4.21% 0.94% Zone1
and 321.60 335.70 14.10 2.42% 1.27% Zone2
MM50 8817243 332868 -60 385.0 325.00 355.20 30.20 5.91% 0.66% Zone1
MM51 8817066 332503 -60 382 325.60 345.30 19.70 4.93% 0.13% Zone1
and 361.60 376.00 14.40 4.12% 1.34% Zone2
MM54 8817017 332522 -64 477.5 409.00 429.70 20.70 5.86% 0.17% Zone1
and 456.70 469.00 12.30 3.15% 1.38% Zone2
MM55 8817457 333060 -60 236 183.10 208.50 25.40 5.19% 0.57% Zone2
MM57 8817016 332522 -77 612 517.00 532.00 15.00 4.25% 0.40% Zone1
and 560.90 581.30 20.40 3.85% 1.28% Zone2
Notes:
1. All intersections reported as downhole intersection widths.
2. Mineralised intersections selected above 1% copper and 0.1% cobalt.
3. Core losses and missing samples within intersections treated as zero
grade.
4. Zone 1 includes the Dolomie Stratifiee (DSTRAT) and Roches Silicieuses
Feuilletees (RSF) units while Zone 2 is the Schistes de Base ( SDB) unit.
A revised resource statement for Dilala East is anticipated to be released
in November 2010. Drilling activity on the Dilala East project continues at
a slow pace while title transfer from Gecamines to Ruashi Mining sprl is
awaited.
Competent Persons
This report has been compiled and reviewed by Mr.T.P.Williams, PrSciNat (SA
Council of Natural and Scientific Professionals Registration No 400387/04),
Fellow of the Southern African Institute of Mining and Metallurgy, BSc
(Hons). Mr Williams is Group Manager: Mineral Resources and is a full-time
employee of the Company. He is a mining geologist with 19 years experience
in exploration, resource development and estimation and mining geology in
gold and base metals through west, central and east Africa. Mr Williams is
based at the Company`s Head Office at 2nd Floor, Cradock Heights, 21 Cradock
Avenue, Rosebank 2146, Johannesburg.
The information contained in this announcement has not been reviewed or
reported on by Metorex`s auditors.
Johannesburg
1 October 2010
For further enquiries please contact:
Metorex CEO, Terence Goodlace Tel: 011 880 3155
CFO, Maritz Smith
College Hill Jacques de Bie Tel: 011 447 3030
Sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
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