Mwana Africa PLC ("Mwana" or the "Company") announces that at the Annual General Meeting of the Company held at 12:00 p.m. today, all the resolutions proposed, as set out in the notice of the meeting to shareholders dated 29th August 2010, were duly passed.
Oliver Baring, Chairman, provided an update to shareholders on the Company’s activities, most notably an update on production at the Freda Rebecca gold mine and the progress of restart plans at the Bindura Nickel Corporation Trojan Mine.
Mwana is pleased to report that production at the Freda Rebecca gold mine has continued to improve with the new mining equipment which arrived on site in July leading to a marked increase in the proportion of higher grade underground ore being processed in August.
Mill throughput for the three months to the end of August was of 141,142t of ore, an average of approximately 47,000t per month, and close to the Phase 1 target of 50,000t per month. Mill availability has increased as a result of the implementation of planned maintenance procedures and with the appointment of key engineering personnel.
As the processing plant achieves steady state operating conditions, together with an increased head grade, gold recovery has improved and planned recovery levels of 80% are now being achieved.
Net gold sales during the period June to August averaged 2,084ozs per month, equivalent to an annualised production rate of approximately 25,000oz. Arrangements for the export of gold to Rand Refinery in South Africa are enabling prompt settlement of US$ proceeds.
Progress has been made on the completion of the conditions for drawdown of the IDC loan and we expect that we will shortly be able to announce that funds have been made available.
Preparatory work for the commencement of the Phase 2 expansion is complete with the scope of works defined, sub-contractors identified and the mine technical team in place. Low cost rehabilitation works have been ongoing pending the completion of financing arrangements and this work is expected to shorten the Phase 2 expansion timetable when work commences.
The recent completion of the SRK Competent Person’s Report on the restart of operations at Trojan has enabled Mwana to advance discussions with financiers and off-takers. Indicative terms have now been offered for the purchase of nickel concentrate and for the provision of loan funding for a significant proportion of restart and restructuring costs and for the purchase of nickel concentrate. Negotiation of these offers is in progress, and the Company will report on developments in this respect as soon as appropriate. Extensive preparatory work including the removal of waste rock and the repair and overhaul of the crushing plant and conveyors at Trojan has commenced.
In July Mwana gave an update on its exploration programme at Zani-Kodo in the Democratic Republic of Congo during the second half of the year. The Company was very pleased to report a 98% increase in the JORC-compliant resource of 1.25 million ounces of gold at a 1 gramme per tonne cut-off. Current drilling is targeting the new Kodo South discovery and prospects along the Zani-Kodo trend in addition to infill drilling.
Mwana wishes to announce that its latest corporate presentation is available to download from the Company’s website. (PDF - 1.09MB)
Oliver Baring - Executive Chairman
Tel: +44 (0)20 7654 5580
Tel: +44 (0)20 7634 4700
David Simonson / Anca Spiridon
Tel: +44 (0)20 7726 8400
This press release includes “forward-looking statements”. Words such as “anticipates”, “expects”, “intends”, “plans”, “forecasts”, “projects”, “budgets”, “believes”, “seeks”, “estimates”, “could”, “might”, “should” and similar expressions identify forward-looking statements. All statements other than statements of historical facts included in this press release, including, without limitation, those regarding Mwana Africa’s business strategy and plans and objectives of management for future operations and acquisition opportunities, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors which could cause the actual results, performance or achievements of Mwana Africa or the markets and economies in which Mwana Africa operates to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements, including, without limitation, political, regulatory and economic factors. Factors that would cause actual results or events to differ from current expectations include, among other things, political risks in the DRC and Zimbabwe, changes to regulations affecting Mwana Africa’s activities, and the other risks involved in the mineral exploration industry. Mwana Africa believes that the assumptions inherent in the forward-looking statements are reasonable; however, forward looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Mwana Africa does not assume any responsibility to update any of such forward-looking statements, save as required by relevant law or regulatory authority.
Charl du Plessis, Executive Vice President Exploration of Mwana, who holds a PhD and is a Member of the AusIMM, is a “Qualified Person” as defined in the AIM Rules and in National Instrument 43-101 - Standards of Disclosure for Mineral Projects, and the information contained in this press release is based upon information prepared under the supervision of Dr. Du Plessis. Mineral Resources included herein are presented in accordance with the JORC Code. If presented in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council, the Mineral Reserve and Mineral Resource presentation would be materially same.