40% Increase in Resource at Moma Titanium Minerals Project, Mozambique

 

 

Kenmare today announces significant progress at its Moma Titanium Minerals Project in Mozambique, including increases in inferred resources and construction of the plant.

 

Exploration drilling, which resumed in late 2005 and early 2006, has resulted in a substantial increase in the resource base at Moma.  At the Nataka zone, which is close to the mineral processing plant, the inferred resource has been increased from 20 million tonnes to 49 million tonnes of contained ilmenite, the main economic mineral, at a grade of 3.3% total heavy minerals.  The Nataka resource also contains 3 million tonnes of zircon and 1 million tonnes of rutile. The resource at Nataka benefits from a similar set of parameters to that of the Proven Reserve at the Namalope zone on which mining is due to commence later this year, and which indicates that Moma will be one of the lowest cost producers in the world.

 

The total resource at Moma has therefore increased from 72 million tonnes to 101 million tonnes of ilmenite plus associated co-products, making Moma one of the largest titanium resources in the world. Ilmenite is used in the production of titanium dioxide pigment, which is largely used in paint, paper and plastic production. The primary applications for zircon are in the manufacture of opacifiers for ceramic tile production and for refractory products used in the steel and foundry industries.

 

The project is now 81% complete and the project contractor, a joint venture between Multiplex and Bateman, is indicating a handover to Kenmare towards the end of 2006.

 

Kenmare has also made substantial progress in the recruitment of a highly experienced team to manage the operation after handover. General Manager Wayne Knott, previously Operations Manager for the Iluka Resources Florida/Georgia operations, joined Kenmare in February 2006. Knott, who has previously served in mineral sands operations in South Africa and Australia, brings a wealth of experience to the Moma Project. Kenmare has also recently appointed a Mining Manager and a Resident Geologist, both formerly of TiWest's Cooljarloo operation in Western Australia, while a Mine Planning Manager, a Process Manager and an Engineering Manager have been recruited from various mining operations in South Africa and will join the operations team during April and May. Their wealth of technical and managerial experience is complemented by an Administration Manager and a Human Resource Manager, both of whom are Mozambican-born and add balance to the management team through their detailed knowledge of local protocols and cultures. Kenmare recognised the importance of a strong management team at an early stage and is confident that this has now been achieved.

 

Commenting today Kenmare's Chairman, Charles Carvill said: "We are delighted with the results from our resumed exploration drilling which make Moma one of the largest exploitable titanium feedstock deposits in the world.  We are also delighted that construction has achieved such an advanced stage of completion without any significant delays.  The onset of production is now only just around the corner and with the highly experienced team we have on board we are looking forward to a smooth start."

 

 

Kenmare Resources plc

Tony McCluskey, Financial Director  

Tel:      + 353 1 671 0411

Mob:    + 353 87 674 0346

 

Dr Chris Gilchrist, Chief Operations Director       

Tel:      + 353 1 671 0411

Mob:    + 353 87 9925027

 

Conduit PR Ltd

Leesa Peters

Tel:      +44 (0) 207 429 6600

Mob:    + 44 (0) 781 215 9885

 

Murray Consultants Ltd

Elizabeth Headon                                                  

Tel:      + 353 1 498 0300

Mob:    + 353 87 989 7234