| Mon 24 Jul 2006, 14:39 | | Teal - Teal acquires furnace with capacity to prod |
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TEL
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Teal - Teal acquires furnace with capacity to produce 5,000 tonnes of copper per
annum in the DRC
TEAL EXPLORATION & MINING INCORPORATED
Corporate Access Number: 31403
ISIN: CA8781511099
(Incorporated in Yukon, Canada on 1 June 2005)
SA Company Registration Number: 2006/003229/10
JSE share code: TEL
JSE short name: TEAL
TEAL ACQUIRES FURNACE WITH CAPACITY TO PRODUCE 5,000 TONNES OF COPPER PER ANNUM
IN THE DRC
TEAL Exploration & Mining Incorporated (TSX-"TL") (JSE-"TEL") ("TEAL") announces
that it has acquired an electric arc furnace with a capacity to produce
approximately 5,000 tonnes per annum of `black copper" ingots grading 85% to 95%
copper.
TEAL intends to locate the furnace in Lubumbashi in the Democratic Republic of
Congo ("DRC"). It is expected that the material feed for the furnace will be
derived from TEAL"s Kalumines Copper-Cobalt Project ("Kalumines"), some 20
kilometres from Lubumbashi, as well as locally available feedstock. The furnace
operations in the DRC will be operated by TEAL independently of Kalumines. TEAL
plans to seek local minority equity partners in line with the Company"s stated
strategy of building the long-term sustainability of its assets in Africa.
Capital expenditure to commission the furnace, including the acquisition of the
furnace and associated infrastructure, is anticipated to total US$4 million and
will be funded using TEAL"s existing cash resources. Operation of the smelter in
the DRC will further depend on arrangements with the State concerning power and
environmental permitting, which processes are both underway. In addition, TEAL
will need to lease or acquire appropriate property in the DRC in order to
establish the furnace on a permanent site. TEAL has entered into a letter of
intent to acquire such property in the DRC for the sum of Euro 600,000.
Initially, TEAL intends to use the furnace to process ore from artisanal miners
currently active on the Kalumines properties. This material will be purchased
by TEAL. The intention is to acquire up to 2,000 tonnes a month of mineralized
material, grading higher than 25% copper, and deliver it to the furnace once it
is commissioned. TEAL is budgeting for total operating costs to be lower than
US$1/lb of copper.
Rick Menell, TEAL"s CEO commented, "Subject to the finalization of power supply
and environmental permitting, we expect that the new furnace will be
commissioned during the first quarter of 2007. This opportunistic acquisition,
while attractive in terms of near-term cash flow, will not distract the Company
from advancing its projects, including Kalumines, through the feasibility and
development phases presented when we completed TEAL"s public listing in November
2005".
TEAL has a mining licence secured for Kalumines, which hosts four near surface
areas of copper mineralization, namely Lupoto, Kasonta, Karavia and Niamumenda.
TEAL believes these deposits are exploitable using open-pit mining techniques,
which is the subject of a feasibility study presently underway and which is
expected to be completed by May 2007. Historical mineral resources of 6.7
million tonnes grading 3.13% copper at Lupoto and 1.5 million tonnes grading
5.18% copper at Kasonta have been estimated by La Generale des Carrieres et des
Mines ("Gecamines") based on drilling carried out by it before 1985.
Rick Menell concluded, "Establishing a furnace in Lubumbashi allows us to
benefit immediately from current small-scale mining on the Copperbelt. The
benefits will improve as we manage the transition at Kalumines from artisanal to
mechanized mining over the coming months".
Mr. Claus Schlegel, Pr. Sci. Nat., TEAL"s Vice President: Exploration and
Business Development, is the "qualified person" for the content of this press
release in terms of National Instrument 43-101.
ends
24 July 2006
Sponsor
Investec Bank Limited
Date: 24/07/2006 02:39:05 PM Produced by the JSE SENS Department
