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ZincOx Resources PLC (ZOX)

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Tuesday 12 June, 2012

ZincOx Resources PLC

Production Update

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 500oC being recovered, over 10% above the design specification (450oC).

 

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 Broker)

Tel: +44 (0)20 7418 8900

Richard Kauffer

Daniel Harris

 


finnCap Limited (Joint Broker)

Matthew Robinson

Joanna Weaving

 

Tel: +44 (0)20 7220 0500

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
 
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