RNS Number : 1398U
  Braemore Resources PLC
  11 May 2008
   




12 May 2008



                             Braemore Resources Plc



                         ("Braemore" or "the Company")





                                 Project Update



                   Leinster Nickel Sulphide Tailings Project



                               Western Australia





Braemore (AIM:BRR) announces an update on progress on the Leinster Nickel

Sulphide Tailings Project. In summary:



   ·The final stage of atmospheric leach test work has commenced





   ·Batch and continuous test work for acid recovery and regeneration in

    progress





   ·SNC Lavalin has been appointed as independent engineers to prepare 
Test

    Report and develop financial model for the next stage of Project Evaluation



 



The Company advises that it has commenced the final stage of pilot testing using

Atomaer's atmospheric leach process at Outotec Research laboratories in Pori,

Finland. The Atomaer pilot plant and technical team arrived in Pori last week

for installation and commissioning ahead of the testwork programme. The plant

has been modified to enable Outotec technology to be operated in conjunction

with Atomaer technology. Those modifications coupled with laboratory

availability have caused slight delays in commencing the final testwork

programme.





Representative samples have been taken from the bulk sample of 70 tonnes of

Leinster nickel sulphide tailings transported to Pori for use as feedstock in

the pilot testing.





The pilot testing programme will comprise a series of six metallurgical tests

over the next four weeks. The tests have been designed to optimise process

parameters and identify and quantify the advantages of the Atomaer leaching

technology. This follows on from the initial pilot plant test work by Atomaer in

June 2007 which achieved nickel yields and dissolution rates greater than 90% in

8 hours.





This was a significant result compared with previous hydrometallurgical test

work on an atmospheric leach of nickel sulphide tailings conducted by Outotec.





The results of the final stage of pilot testing of the atmospheric leach are

expected for release in June and July.





In addition, acid recovery and recycling test work via sulphur recovery is being

undertaken in South Africa, and is also expected to be completed in the next few

months. Earlier analyses estimated a significant reduction in acid consumption

using independent patented technology. The results are expected to have

important implications for the capital and operating costs of the Project.





The process may also have broader applications in reducing acid consumption in

the leaching process for other base metals, and this will be examined further

once the results of the test work are available.





SNC Lavalin Perth has been engaged as independent engineers to prepare the Test

Report for submission to BHP Billiton under its Tailings Supply Agreement with

Braemore. The Test Report is due for completion and delivery by the end of July.

SNC has also been engaged to build the financial model for the Project which

will be used for the Engineering Study and Economic Evaluation.





For further information, please see www.braemoreresources.com or contact:



Braemore Resources Plc        Investec Bank (UK) Limited  Mirabaud Securities

David Russell                 Gerard Kisbey-Green         Rory Scott

Acting Joint CEO              Tel: +44 20 7597 5167       Tel: +44 207 878 3360

Tel (Office): +61 8 9218 8833

Tel (Mobile): +61 416377 157

Parkgreen Communications      Russell and Associates
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