Production Update (1288F)
June 12 2012 - 1:00AM
UK Regulatory
TIDMZOX
RNS Number : 1288F
ZincOx Resources PLC
12 June 2012
12 June 2012
ZincOx Resources plc
("ZincOx" or the "Company")
First Revenues Received for Korean Recycling Plant
Production Update
ZincOx is pleased to announce that the Korean Recycling Plant
has been commissioned, is in production and is in the ramp-up mode.
All of the zinc product is being sold to Korea Zinc as part of a
ten year zinc concentrate supply agreement and first revenues have
been received.
As is the case for all new treatment plants, the initial
production involves a period of ramp-up during which:
- throughput increases to full capacity and
- operating conditions are optimized and any teething problems resolved.
In the case of the Korean Recycling Plant a ramp-up of four
months was expected and we remain on track to achieve this
target.
The plant uses technology that involves both process and
equipment innovation. The process requires:
- the efficient separation of zinc
- the reduction of iron
- the recovery of energy
Zinc recovery is consistently above 90% and is steadily rising.
The zinc product quality is better than expected having a grade of
over 61% (target 58%). It is of exceptional purity having almost no
(<0.01%) carry over of iron - a separation significantly better
than the 0.5% predicted. Testwork on the zinc concentrate has shown
that the halides (chlorides and fluorides) that are carried through
into the product may be readily removed by simple washing so that
the washed product is a premium product that may be used by a zinc
smelter in ways that are not possible with other zinc feeds.
The iron oxide in the EAFD is chemically reduced with coal to
form metallic iron. The proportion of iron that is reduced to its
metallic form is known as the metallisation rate. The metallisation
rate is already 75%-85% against a target of 80%-85% and continues
to improve.
The novel energy recovery system is working better than expected
with air of 500(o) C being recovered, over 10% above the design
specification (450(o) C).
In respect of the equipment, all equipment is performing as
expected and throughput is being increased. In addition,
environmental performance, including stack emissions, is well
within the levels set by Korean regulations and international
standards. Furthermore, there has been no evidence to date of any
issues which could potentially reduce plant performance such as the
formation of accretions or briquette degradation.
Commenting on the announcement, Andrew Woollett, ZincOx's
Chairman, said, "Throughput of the plant is building steadily
towards name plate capacity as teething problems are overcome. We
expect zinc recovery to increase over the next few months as the
equipment is optimised."
Further updates on progress will be circulated as the plant
ramps up to full production.
For further information please contact:
ZincOx Resources plc Tel: +44 (0)1276 450
100
Andrew Woollett, Executive Chairman
Peel Hunt LLP (Nominated Adviser and Joint Tel: +44 (0)20 7418
Broker) 8900
Richard Kauffer
Daniel Harris
finnCap Limited (Joint Broker) Tel: +44 (0)20 7220
Matthew Robinson 0500
Joanna Weaving
Tavistock Communications Tel: +44 (0)20 7920
3150
Lydia Eades
Simon Hudson
Paul Youens
This information is provided by RNS
The company news service from the London Stock Exchange
END
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