Kazera Global PLC Investee Company Operational and Strategic Update (3373O)
May 17 2018 - 1:00AM
UK Regulatory
TIDMKZG
RNS Number : 3373O
Kazera Global PLC
17 May 2018
17 May 2018
Kazera Global
Investee Company Operational and Strategic Update
Kazera Global plc ("Kazera Global" or "the Company) the AIM
quoted investment company who, through its stake in African
Tantalum (Pty) Limited ("Aftan"), has an interest in the Namibia
Tantalite Investment Mine ("NTI" or the "Mine") in Namibia,
provides the following strategic and operational update.
Plant refurbishments and upgrades made over the last 16 months
have delivered important operational efficiencies allowing for the
consistent extraction of high purity tantalum from the Homestead
ore body. In tandem with this, MSA Group, a leading provider of
exploration, mineral resources and reserve estimation, has been
analysing the mining licence and drilling for total mineralisation
at the Homestead and Lepidolite target zones.
What is now very clear to Aftan and Kazera is that beyond the
Homestead and Lepidolite zones, the total licence area has
mineralisation that could unlock significant value. This, along
with interest from further potential offtakers, warrants a
strategic focus on defining the mineralisation over the entire
property to understand the true scale and opportunity at the NTI
Mine.
With the processing capability to produce world class quality as
well as high purity tantalum now proven and the capacity to scale
the plant with the mining operation, in addition to a water licence
to acquire water from the Orange River, Aftan will be redirecting
near-term resource and efforts on mineralisation definition.
Strategic focus
Aftan and the Company believe significant near-term value can be
unlocked through a targeted exploration programme over the next
several months across the whole property which covers 452 Ha.
Historical sample data exists, however the drilling programme will
provide increased confidence and consist of approximately 3000
metres of drilling across the mine with primary targets including
the Signalberg mountain, White City and Snake deposits. This
drilling will supplement ongoing drilling taking place at Homestead
and Lepidolite areas where over 200 samples have so far been taken.
The new drilling programme will test total mineralisation across
the licence but predominantly focus on tantalum and lithium.
A comprehensive understanding of the mineralisation will allow
Aftan, the Company and interested global offtake parties to truly
assess the fundamental and future value of the operation, and for
the development of a long-life mine plan through extensive
satellite deposits to feed the plant. Importantly, the refurbished
and upgraded plant has been designed so it can be scaled in line
with an increased mining operation.
Operational optimisation
In line with the strategic focus on mineralisation definition
and to ensure the most effective operation of the mine, Aftan will
be significantly reducing staffing numbers at the Mine. This will
reduce mining costs and optimise the operation using a multi
skilled employee base. Aftan will continue to produce and sell its
tantalum and supply the customer who has been informed of the
strategic directional change and is keen to understand the
potential of the operation. Samples from the plant's ongoing
production will also be provided to other potential offtake
partners.
Following the newly approved water licence to acquire water from
the Orange River, delivering considerably more consistent water at
higher volumes, Aftan has initiated a tender process for laying the
pipework, with the intention of utilising solar power to drive the
system. This is a highly important licence for the operation and is
aligned with the strategic focus to define wider mineralisation
across the licence.
Larry Johnson, CEO, said:
"I am very excited about the opportunity that lies across the
entire licence and am pleased with the strategic direction we are
taking to fully understand the full potential of the deposit Kazera
owns. This will provide shareholders with full details to assess
their investment and allow the Company to realise maximum value
whilst providing highly important strategic choices."
**ENDS**
Kazera Global plc (c/o Camarco) Tel: +44 (0)203
757 4980
Larry Johnson (CEO)
finnCap (Nominated Adviser and Tel: +44 (0)207
Joint broker) 220 0500
Christopher Raggett / Scott
Mathieson / Anthony Adams (corporate
finance)
Shore Capital (Joint broker) Tel: +44 (0)207
Mark Percy / Toby Gibbs (corporate 408 4090
finance)
Jerry Keen (corporate broking)
Camarco (PR) Tel: +44 (0)203
Gordon Poole / James Crothers 757 4980
/ Monique Perks
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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