TIDMKEM
RNS Number : 0510I
Kemin Resources PLC
19 March 2018
Kemin Resources plc
("Kemin" or the "Company")
Update on the Drozhilovskoye ore field
Kemin Resources Plc (AIM: KEM), the exploration and development
company with substantial interests in Kazakhstan, provides an
update on its Drozhilovskoye field, including with respect to its
mining licence extension process, recently completed exploration
work and its development plans for the asset.
Kemin's 90% owned subsidiary, the Joint Venture Kazakh-Russian
Mining Company LLP ("KRMC"), has a licence for exploration and
production of molybdenum (Mo), tungsten (W), lithium (Li) and rare
earth minerals at the Drozhilovskoye field, which is currently in
the final stages of being extended. The Company believes that the
extension will have been confirmed by relevant ministry in
Kazakhstan by end of Q2 2018.
Exploration Work Update
The latest drilling and analysis work clarified the geological
structure of the field and confirmed that the tungsten and
molybdenum minerals are isolated, and that they can be selectively
mined. The work also confirmed the presence of significant amounts
of high quality lithium. The work undertaken by the Company
internally has allowed a re-estimation of the contained metal
content of both molybdenum and tungsten resources and provides a
first estimate for the lithium resource (all with a cut-off grade
of 0.05%). The drilling consisted of number of bore holes, totaling
534 metres, and the resulting samples were assayed to include rare
earth minerals. Please see the table below for more
information.
It is the Company's intention to complete more detailed resource
estimates, which will be verified by an independent competent
person, in the near future.
Based on the latest test work, the following internal resource
estimates, under State Reserves Committee classification (GKZ /
Russian State Commission on Mineral Reserves classification), were
arrived at:
Metal Commercial Mineral Contained metal Grade %
Cut-off Resource (Mt) (kt)
Grade Category
0.05%
----------- ------------ --------- ---------------------------- ----------------------
Mo W Li Mo W Li
----------- ------------ --------- ------- ------- ---------- ------ ------ ------
Identified Resources for the Northern Stockwork
------------------------------------------------------------------------------------------
146.4 4.1 -
C1 (Mo) 270.49 177.79 45.0-55.0 0.185 0.134 4.5
133.1
(W)
----------- ------------ --------- ------- ------- ---------- ------ ------ ------
Identified Resources for the Southern Stockwork
------------------------------------------------------------------------------------------
4.1 -
2 37.9 108.5 11.4 25.0-35.0 0.286 0.103 4.5
----------- ------------ --------- ------- ------- ---------- ------ ------ ------
Prognostic resource
------------------------------------------------------------------------------------------
4.1 -
1 300.0 150.0 150.0 40.0-50.0 0.050 0.050 4.5
----------- ------------ --------- ------- ------- ---------- ------ ------ ------
Further development of the asset
The Company's lead specialists recently visited Chinese research
institutes to familiarise themselves with the technology and
discuss the detailed procedures for processing molybdenum, tungsten
and lithium ores, and to deliver a presentation on Kemin.
The trip also involved a visit to an operating plant for the
beneficiation of molybdenum, tungsten and lithium ores with the end
product being flotation concentrates of three different types of
metal, i.e. molybdenum, tungsten and lithium. The deposits of the
Drozhilovskoye field are regarded by management to be very similar
to the ores being processed at that plant.
This plant visited is owned by China Molybdenum, which is the
largest molybdenum mining company in China. During the meeting,
China Molybdenum showed interest in the Drozhilovskoye field and
discussions were held in relation to a possible joint development
of the field. These initial discussions centered around development
via open pit mining, and the location of the production complex
close to good rail links and power supplies. This, together with
the presence of lithium, and other minerals, indicated from the
test drilling conducted, makes the development of the field
attractive to a partner, and further discussions are planned to
take place.
The following work needs to be carried out to transition to the
production phase:
-- Further geological exploration through drilling confirmatory
boreholes and taking samples for process testing and determining an
efficient technology for the extraction of molybdenum, tungsten and
lithium;
-- Completion of a mineral block model and resource estimation;
-- Approval of the reserves by the Kazakh authorities;
-- Subject to sourcing additional funding, the process testing
will be followed by construction of a pilot beneficiation plant
with a proposed processing capacity of 300 kt per year, and which
will produce a concentrate of molybdenite and tungsten and a
concentrate of lithium;
-- Completion of a feasibility study to confirm all technical
and financial results including using the design of the pilot
beneficiation plant to develop, subject to sourcing further
additional funding, a beneficiation plant with ore processing
capacity of 3.0 Mt per year;
Funding requirements are being assessed to determine what
additional funding is required in the first instance in relation to
the construction of the pilot plant.
Commenting on the results, Sanzhar Assaubayev, CEO of Kemin
Resources said:
"We are very pleased to have put forward a development plan to
move the field forward and look forward to continuing our
discussions with China Molybdenum in this regard. We look forward
to updating shareholders with further news as the project
develops".
Review by Qualified Person
Sergey Alekhin, senior consultant, has reviewed and approved the
technical information contained within this announcement in his
capacity as a qualified person under the AIM Rules for Companies.
Mr Alekhin has a degree in geological and mineralogical sciences,
is a member of the Committee of Geology for Solid Minerals, and has
over 20 years of relevant mining industry experience.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
For further information, please visit
http://www.keminresources.com or contact:
Kemin Resources Plc
Rajinder Basra (CFO)
+44(0)207 932 2456
Strand Hanson Limited (Nominated & Financial Adviser and
Broker)
James Spinney / Ritchie Balmer
+44(0)207 409 3494
Information on the Company
Kemin Resources plc (AIM: KEM) was formed into its present
structure in April 2013 by the reverse take-over of GMA Resources
plc by the 'Joint Venture Kazakh-Russian Mining Company LLP'
(KRMC).
The Company is focused on developing its two molybdenum and
tungsten deposits Drozhilovskoye and Smirnovskoye in norther
Kazakhstan. Each of the deposits is assessed to have significant
value, however the Company has decided to focus development efforts
on Drozhilovskoye.
Kemin's 90% owned Kazakh entity, KRMC, is the developer and
future operator of the two subsoil licences that allow exploration
and mining at each deposit.
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDKMGMFVVDGRZM
(END) Dow Jones Newswires
March 19, 2018 03:00 ET (07:00 GMT)
Kemin Resources (LSE:KEM)
Historical Stock Chart
From Apr 2024 to May 2024
Kemin Resources (LSE:KEM)
Historical Stock Chart
From May 2023 to May 2024