BMR Group PLC Kabwe Project Update and Activities (7090C)
June 30 2016 - 2:00AM
UK Regulatory
TIDMBMR
RNS Number : 7090C
BMR Group PLC
30 June 2016
BMR Group PLC
("BMR" or the "Company")
Kabwe Project Update and Activities
BMR, the Zambian-focused mineral processing business, notes the
weakness in its share price during June 2016 and announces that the
Board is not aware of any developments within the business that may
have caused this.
The Board sets out below an update on the Company's current
activities.
Product Off Take Sale and Purchase Agreement
The Board is pleased to announce that negotiations are
proceeding well with the private South African group engaged in
mining, energy and agri-business concerning a US$2 million facility
for the construction of the plant at Kabwe ("Plant") and the
related sale and purchase agreement, for the sale of agricultural
grade zinc sulphate heptahydrate (ZSH) (500 tpm) and lead sponge
(300 tpm).
Plant Construction
Civil works to the floor space in the old mine concentrator
building in preparation for the construction of the Plant are well
advanced. In the meantime, BMR has started placing orders for
locally manufactured items for the leach/precipitation section. The
main 90 m(3) sulphuric acid storage tank has been acquired and is
in place. Plant design optimisation has resulted in standardising
tank sizes for leach/precipitation/zinc re-leach and lead leach
sections. Similarly in the zinc Solvent Extraction (SX) circuit,
optimisation of the extraction and stripping phases has resulted in
a reduction in the tank sizes. This will result in a modest
reduction in plant capital costs. The expected Plant commissioning
date for the commencement of production remains on schedule, for
early 2017.
Geological Potential of the Kashitu area
Preliminary work has started on the evaluation of the Kashitu
area following the collection of all available historic drilling
and ground magnetic data. A pitting and trenching programme will
commence in August 2016 to follow up historical anomalies plus
additional exploration to extend our knowledge of this section of
our Large Scale mining licence.
ZEMA
A programme to establish baseline studies for monitoring air,
ground water and personal health in compliance with the conditions
set out by ZEMA following their approval to build the Plant has
been agreed with J A Consultancy. This work will commence shortly
and take between 6 and 8 weeks to complete.
A decision is awaited from ZEMA for the EPB submitted by BMR to
sell the Waelz Kiln slag. ZEMA have advised that the earliest
likely date for this approval will be the end of July 2016. The
delay has been due to internal re-organization of their managing
committee responsible for approving such applications.
Alex Borrelli, Chairman, commented: "We continue to make good
progress towards the key sale and purchase agreement for zinc
sulphate heptahydrate and lead sponge from our Plant and look
forward to confirming this by the end of July 2016."
Ends
For further information:
BMR Group PLC
020 7734 7282 Alex Borrelli, CEO and Chairman
WH Ireland Limited 020 7220 1666
NOMAD and Joint Broker Chris Fielding, Head of Corporate
Finance
Peterhouse Corporate Finance 020 7469 0930
Joint Broker Lucy Williams/ Duncan Vasey/ Heena Karani
This information is provided by RNS
The company news service from the London Stock Exchange
END
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