| Mon 15 Nov 2010, 17:00 | | MTX - Metorex Limited - Ruashi and Kinsenda Update - 15 November 2010 |
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MTX
MEMTX
MTX - Metorex Limited - Ruashi and Kinsenda Update - 15 November 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")
RUASHI AND KINSENDA UPDATE - 15 NOVEMBER 2010
Ruashi Mine
Following record production of copper in the September 2010 quarter when Ruashi
produced 8,566 tons of copper and 1,057 tons of cobalt, production in the
December 2010 quarter has been affected by recurring transformer electrical
faults. The circuit is made up of two transformer units and the one transformer
circuit continues to run normally while the other circuit is currently offline.
The Ruashi tank house is operating at a reduced throughput of 50 percent and it
is expected that approximately five weeks in the quarter will be affected by the
business interruption.
A summary of the transformers at Ruashi:
Transformer Status
No 1 This unit is operational as per
original design and will be changed out
for modifications in 2011.
No 2 This is the failed unit removed from
site in June 2010 currently being
repaired and modified in Johannesburg.
Work is nearing completion and the unit
will be returned to Ruashi at the end
of November 2010.
No 3 This unit has partially failed and will
be changed out for full modifications
in 2011.
No 4 A new modified transformer is being
assembled in Johannesburg and
completion is planned for February
2011.
Mitigating action taken includes, inter alia, the feeding of higher grade cobalt
ores to the plant and cobalt production for the December quarter is not expected
to be as affected as is the copper production. A full mill re-line and other
essential maintenance has also been completed during the downtime experienced
thus far.
Kinsenda Mine Resource drilling update
The remaining analytical results for the Kinsenda Mine infill drilling programme
have all been returned. The results continue to confirm the thickness and high
grade nature of the Lower Ore Zone ("LOZ") and the Lower Lower Ore Zone
("LLOZ").
A summary of all results is provided in Tables 1 and 2. Some significant
results for the programme 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;
MKD013 - 11.0 metres at 3.90% copper from 291.3 metres;
MKD012B - 4.5 metres at 5.23% copper from 345.5 metres;
MKD017 - 6.4 metres at 4.84% copper from 254.1 metres and
12.0 metres at 6.83% from 268.5 metres; and
MKD018 - 9.1 metres at 9.16% copper from 334.2 metres;
Table 1 - Kinsenda Infill Diamond Drilling Results reported as at 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
MKD009 604567 8643856 -90 236.5 Hole abandoned above target
horizon
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
Table 2 - Kinsenda Infill Diamond Drilling Results received since 30 September
2010
Hole Coordinates Incl. E.O.H. From To Length Cu Zone
Number x y (deg.) (m) (m) (m) (m) (%)
MKD012B 603964 8644294 -90 357.0 319.50 322.50 3.00 1.94% LLOZ
and 345.50 350.00 4.50 5.23% LLOZ
MKD014B 604091 8644331 -90 343.1 280.00 282.00 2.00 4.52% LOZ
and 296.10 298.10 2.00 3.35% LOZ
and 319.30 324.90 5.60 2.09% LLOZ
MKD015 603572 8644136 -70 377.4 349.20 352.50 3.30 7.84% LOZ
MKD016 604012 8644380 -90 134.5 Hole abandoned above target
horizon
MKD017 604234 8644359 -90 317.0 254.10 260.50 6.40 4.84% LOZ1
and 268.50 280.50 12.00 6.83% LOZ2
MKD018 604240 8643988 -70 365.0 334.20 343.30 9.10 9.16% LOZ
MKD019 604085 8644315 -70 102.0 Hole abandoned above target
horizon
MKD020 604202 8644124 -70 235.5 214.00 216.30 2.30 2.28% UUOZ
Hole abandoned above target
horizon
MKD021 604197 8644420 -90 303.5 Metallurgical hole, >10m of
visible high grade mineralisation
MKD022 604150 8644412 -90 334.2 263.25 268.25 5.00 3.55% LOZ1
and 271.25 273.75 2.50 2.90% LOZ2
MKD023 604182 8644275 -90 336.5 280.50 282.60 2.10 4.43% MOZ
and 296.80 300.00 4.20 5.33% LOZ1
MKD024 604266 8644222 -90 333.0 287.35 293.35 6.00 2.64% 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.
All holes have been logged and sampled with best practice assay quality
assurance and quality control ("QA / QC") measures. All samples were submitted
to the ALS Chemex laboratory in Johannesburg, South Africa for analyses. 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 revised resource statement is anticipated to be released by Snowden Mining
Industry Consultants (Pty) Limited in December 2010.
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. Mr Williams approved the information contained in this
announcement, in writing, before its publication.
The information contained in this announcement has not been reviewed or reported
on by Metorex`s auditors.
Johannesburg
15 November 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
Date: 15/11/2010 17:00:03 Produced by the JSE SENS Department.
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