Esrey Resources Ltd. (TSX-V:ESR) (“Esrey” or the “Company”) is
pleased to announce that it has achieved significant progress in
the development of its first zinc production project in Macedonia.
Within the regulatory framework of the Ministry
of Environment and Physical Planning of the Government of the
Republic of Macedonia (“MOEPP”) approval, the Company is completing
the commissioning of a processing plant to process 1,800 tonnes per
annum (“tpa”) of Feed Material, as defined below. Coinciding with
strengthening zinc prices, the Company has successfully produced
zinc cathode from this recently constructed and permitted
The Company is currently finalising a long term
raw material supply (“Feed Supply”) agreement for 22,000tpa of high
grade zinc (+23% zinc) bearing oxides (“Feed Material”).
Additionally, the Company is evaluating further sites within
Macedonia for the construction of a large scale processing plant to
support rapid expansion.
Construction of modular zinc recovery
The Company has constructed a hydrometallurgical
zinc recovery plant with a processing capacity of 1,800tpa and is
in the final stages of de-bottlenecking it to achieve installed
capacity. The plant was built at a cost of approximately US$2.5
million over the last six months and has validated its modular
design. In parallel with the plant construction, the Company has
built and commissioned a fully equipped laboratory to enable the
fast and accurate turn-around of plant samples to support ongoing
Esrey is finalising a Feed Supply agreement to
provide the Company with a stable raw material source of up to
22,000tpa of Feed Material in order to support its expansion plans.
This agreement will have a 10-year term and will be extendable at
the Company’s election for an additional 10 years. The Feed
Material will be processed at the Company’s planned modular
processing plant (as described below) and the recovered metals and
other elements will be sold on the international market.
Within the regulatory framework of the MOEPP,
the Company has received authority to process up to 15,000tpa of
locally sourced and imported zinc bearing products. The Company
observes compliance with the Basel Convention to transport and
process such material as an end-user and in so doing, contributes
to the overall mitigation of the environmental impact of current
and historic production. Within the next two years of operation,
the Company will permit and define the parameters of a large scale
zinc production facility and transfer the existing plant to a
suitable industrial site within Macedonia to accommodate the
organic growth of a 45,000tpa production facility.
Future facility location
Under the current plans accepted by the MOEPP,
the Company is currently designing the 15,000tpa modular processing
plant and is investigating growth options to expand this plant to a
design capacity of 45,000tpa. This 15,000tpa processing plant will
be designed in such a manner that modular capacity increases can be
achieved with minimal operational disruption.
In order to support the Company’s growth plans
of increasing capacity substantially from 15,000tpa, the Company is
investigating a number of potentially suitable locations capable of
rapidly providing the required infrastructure needed to support a
45,000tpa future operational capacity.
Financial statements for the year ended
September 30, 2017
Further to the Company’s press release dated
January 29, 2018, the Company is pleased to report that it has
filed its annual financial statements for the year ended September
30, 2017, including the related management discussion and analysis,
and the CEO and CFO certifications. These documents can be
found on www.sedar.com.
For more information, please
Investor Relations: 1-778-373-0103 Email:
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This press release contains certain
forward-looking statements and forward-looking information
(collectively referred to herein as “forward-looking statements”)
within the meaning of Canadian securities laws. All
statements other than statements of historical fact are
forward-looking statements. Forward-looking information
typically contains statements with words such as “anticipate”,
“believe”, “plan”, “continuous”, “estimate”, “expect”, “may”,
“will”, “project”, “should”, or similar words suggesting future
Undue reliance should not be placed on
forward-looking statements, which are inherently uncertain, are
based on estimates and assumptions, and are subject to known and
unknown risks and uncertainties (both general and specific) that
contribute to the possibility that the future events or
circumstances contemplated by the forward-looking statements will
not in fact be realized. Actual results will differ, and the
difference may be material and adverse to the Company and its
shareholders. Risk factors affecting future results include, but
are not limited to: financial risks, substantial capital
requirements, government regulation, environmental risks, prices,
markets and marketing, dependence on key personnel, uninsurable
risks, management of growth, competition, issuance of debt, and
variations in exchange rates.
Forward-looking statements are based on the
Company’s current beliefs as well as assumptions made by, and
information currently available to, the Company concerning
anticipated financial performance, business prospects, strategies,
regulatory developments, the impact of increasing competition, the
ability to obtain financing on acceptable terms, and the ability to
add feed supply. Although management considers these
assumptions to be reasonable based on information currently
available, they may prove to be incorrect.
The forward-looking statements contained in this
press release are made as of the date thereof and the Company does
not undertake any obligation to update publicly or to revise any of
the included forward-looking statements, except as required by
applicable law. The forward-looking statements contained
herein are expressly qualified by this cautionary statement.