Metorex Limited - Metorex`s Chibuluma South Mine Access Complete
METOREX LIMITED
Share code: MTX
ISIN: ZAE000022745
Thursday, 9 June 2005
METOREX`S CHIBULUMA SOUTH MINE ACCESS COMPLETE
The company is pleased to announce that the sinking of the Chibuluma South Mine
decline shaft intersected the underground workings on 1 June 2005. The
intersection has been delayed by approximately six months due to the poor ground
conditions close to surface resulting in additional support being required. The
opening of the decline shaft will facilitate rapid movement of personnel,
machinery and ore and full access to the underground orebody which has to date
been mined via the ventilation shaft. Underground orebody development commenced
during September 2004 to enable immediate access to the first two mining levels
once the decline shaft was commissioned.
Metorex, one of the first companies to enter into Privatisation Agreements with
ZCCM and the Government of the Republic of Zambia (GRZ) acquired the Chibuluma
West mine and Chibuluma South orebody in 1997. The major asset was the Chibuluma
South orebody with its proven ore reserve of approximately 8.1million tons with
an in situ grade of 3.5% copper providing a life of in excess of 15 years at
planned production levels. The opening of the shaft will result in the
production of 20 000 tons milled per month in September 2005 (Annualized 7 500
tons copper/yr). Thereafter, production will build up to 40 000 tons milled (15
000 tons of copper per annum) by Q2 of 2006. The operating cost per pound of
copper produced at full production is approximately $0.45 excluding treatment
charges. (TC/RC`s).
The Chibuluma West mine was closed in accordance with the regulations of the
Zambian Mining Act. The relevant authorities have been notified of the closure
and an abandonment certificate applied for. A majority of the employees from the
Chibuluma West mine have been relocated to Chibuluma South.
ON BEHALF OF THE BOARD OF DIRECTORS OF METOREX LIMITED
A S MALONE
EXECUTIVE CHAIRMAN
Listed: JSE Securities Exchange/LSE (CRESTCo)/ADR:BoNY
For further information visit our website at www.metorexgroup.com, or contact:
CHARLES NEEDHAM
P O Box 2814, Saxonwold, 2132, South Africa.
Tel: +27 11 880 3155
Fax: +27 11 880 3322
e-mail: ir@metorexgroup.com
Date: 09/06/2005 04:00:10 PM
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