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Kazera Global PLC (KZG)

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Thursday 17 May, 2018

Kazera Global PLC

Investee Company Operational and Strategic Update

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 Joint broker)

Christopher Raggett / Scott Mathieson / Anthony Adams (corporate finance)

 

Tel: +44 (0)207 220 0500

 

Shore Capital (Joint broker)

Mark Percy / Toby Gibbs (corporate finance)

Jerry Keen (corporate broking)

Tel: +44 (0)207 408 4090

Camarco (PR)

Gordon Poole / James Crothers / Monique Perks

Tel: +44 (0)203 757 4980

 

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
 
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