BRR Braemore Res

RNS Number:7476G
Braemore Resources PLC
26 July 2006

26th July 2006

                             BRAEMORE RESOURCES PLC
                         ("Braemore" or the "Company")

                  PILOT PLANT FLOTATION TEST WORK TO COMMENCE

                  Braemore secures use of existing pilot plant

          Significant saving in budgeted capital expenditure and time


Braemore Resources plc (AIM: BRR) announces that pilot plant flotation test work
is to commence, utilising an existing joint AMMTEC / Outokumpu pilot flotation
plant in Perth, Western Australia.

The pilot plant flotation test work programme is designed to confirm the initial
laboratory scale test results achieved by Outokumpu Finland.  The initial
Outokumpu test results are encouraging, but the full results are not expected to
be available until the end of October 2006.  Test work by Outokumpu is
continuing on sample material recovered from the phase 2 drill programmes at BHP
Billiton's Leinster Nickel operations in Western Australia, in particular the
large TSF 3 facility. This is in line with the Tailings Supply Agreement entered
into with BHP Billiton in February 2005.

The utilisation of this existing pilot flotation plant will save the Company the
cost of the initially planned construction of a new plant at a budgeted capital
cost of approximately #0.7m and time saving of the construction period of an
expected 6 to 8 months.

A bulk sample of 250 tons of material from the Leinster tailings storage
facilities will be transported by road to the AMMTEC test facility in Perth in
early August with the test work expected to be concluded by mid October 2006.

The test facilities will utilise both a 250kg per hour plant and a 1.3 tonne per
hour pilot flotation plant.

Samples of the concentrates and tailings produced by the pilot plant flotation
test work will be sent to Dynatec Corporation in Canada for exploratory leach
test work in addition to samples  from the Outokumpu bench scale flotation test
work.

The total cost of the pilot plant flotation test work and leaching programme has
been budgeted at approximately #0.6 million.

At the conclusion of this programme, the Company will be in a position to
commence its feasibility study into the Leinster Project economics which is
scheduled for completion by mid 2007.

Braemore's Managing Director, Clayton Dodd, said: "The utilisation of the AMMTEC
facility is a significant positive development, enabling the Company to fast
track the important pilot plant flotation test work and recover time lost
through the extended drilling programme.  The expected timing for completion of
the Leinster feasibility study is back on track, with the additional benefit of
the significant capex saving on not constructing a new pilot plant."


Leinster Project Technical Appointment

The Company is pleased to announce that Mr Robert Sinclair has joined the
project team.  Mr Sinclair a Chartered Chemical Engineer with over 22 years
experience in mineral processing and also holds a Bachelor of Commerce Degree.
Mr Sinclair has extensive knowledge and experience in the processing of base
metals and has worked on over 30 expansions to current base metal facilities in
Southern Africa including Anglo Platinum Base Metal Refinery, Bindura Nickel
Refinery, Impala Base Metal Refinery, Lonmin Base Metal Refinery and Tati Nickel
as well as conducting numerous feasibility studies for several new base metal
refineries.


The information contained in this announcement has been reviewed by the
Technical Director of the Company, Mr Michael Elias BSc (Hons), FAusIMM, CPGeo,
who has over 23 years experience as a nickel geologist, and is a director of CSA
Australia.


                                     -ends-



For further information please contact:

Braemore Resources plc
Clayton Dodd, Managing Director       +61 (8) 9218 8833
Anthony Samaha, Director              +44 (0) 207 016 5100

Nabarro Wells & Co Limited
Hugh Oram, Director                   +44 (0) 207 710 7400
                                  
Parkgreen Communications
Justin Howarth / Ana Ribeiro          +44 (0) 207 493 3713


Notes to Editors:

Background

*    Through its wholly owned subsidiary Western Consolidated Nickel Pty Ltd, 
     the Company has sole rights to conduct pilot plant test work and a
     Definitive Feasibility Study on the reclamation and processing of sulphide
     nickel tailings at BHP Billiton's nickel operations at Leinster.

*    The Company may proceed with the development and operations of commercial 
     plants to process sulphide nickel tailings at the Leinster operation
     ("the Project") and subsequently at Kambalda and Mt Keith if the definitive
     feasibility study satisfies the project criteria for the production of a 
     high grade intermediate product in the form of a nickel sulphide containing
     61% to 65% nickel.

*    Under the Tailings Supply Agreement ("the Agreement"), BHP Billiton has the
     right to acquire a 50% interest in the Project under joint venture 
     arrangements either at the development stage, or within 3 years after the 
     commissioning of a plant.

*    The Agreement also provides an exclusive undertaking whereby BHP Billiton 
     may purchase all nickel sulphide product that complies with the Project's 
     product specification.


AMMTEC

AMMTEC (Australian Metallurgical & Mineral Testing Consultants) was established
in 1979 and has steadily grown to become one of the largest metallurgical and
mineral testing consultancies in the world.  The Company was listed on the
Australian Stock Exchange in 1994.  AMMTEC's clientele are diverse and include
many of the World's major mining groups in addition to a number of emerging
resource companies.


Dynatec Corporation

The Metallurgical Technologies Division of Dynatec Corporation, is a recognised
leader in pressure hydrometallurgy and has almost 50 years of experience in the
development and commercialization of hydrometallurgical technologies for the
treatment and recovery of non ferrous metals. The organisation has developed
processes for the treatment of nickel, copper and cobalt bearing concentrates,
mattes, intermediates and residues. More than 20 commercial plants world wide
currently employ Dynatec processes.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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