TEAL reports more high-grade copper intersections at Konkola North Area 'A'
Fri Jul 25, 9:36 AM
- Seven boreholes for 11,400 metres of a 18,000 metre exploration
drilling program on Konkola North's Area 'A' completed
- Selected results include:
- 9.74m at 3.87% copper
- 9.75m at 5.62% copper
- 5.03m at 4.25% copper
- 11.71m at 4.17% copper
- Four exploration drill rigs remain in progress
TORONTO, July 25 /CNW/ - TEAL Exploration & Mining Incorporated (TSX-"TL") (JSE-"TEL") ("TEAL" or the "Company") has announced more drilling results from its ongoing exploration program at the Company's Konkola North property in Zambia.
The previously released historical inferred mineral resource was estimated at 107,157 million tonnes at 2.30% total copper for Area 'A' and 63,245 million tonnes at 3.88% total copper for Area 'A' Extension. TEAL now refers to the combined area as Area 'A'. In March 2008, a revised resource estimation was completed according to Canadian National Instrument 43-101 ("NI 43-101") by SRK Consulting (South Africa) (Pty) Limited ("SRK") defining a total inferred resource of 219,500 million tonnes at 2.64% total copper.
TEAL appointed two international drilling companies to undertake the drilling in Area 'A' and four drill machines are presently drilling. Drilling commenced in September 2007 and to date an additional seven boreholes were completed for 11,400 metres. Drilling centres are spaced 600 metres apart and infill drilling on 300 metre spacing has commenced. The assay results of drill holes are shown in Table 1:
Table 1: Assay results Area 'A' (1% T Cu cut-off)
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Borehole no. Depth from True Thickness Total Cu AS Cu
(m) (m) (%) (%)
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KLB 82* 749.81 9.74 3.82 2.57
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Including: 7.00 4.79 3.08
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KLB 85* 816.00 12.28 2.37 0.68
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Including: 2.20 4.90 3.09
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KLB 91* 1038.76 6.20 1.87 0.48
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KN 10* 905.54 0.96 1.07 0.96
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KN 2* 1131.05 8.87 3.12 0.28
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Including: 4.14 4.31 0.35
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KN 16* 1280.34 9.75 5.62 3.08
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KN 1A* 1163.09 9.81 2.10 0.09
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KN 39 No intersection
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KN 40 942.58 11.71 4.17 0.91
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Including: 6.42 6.26 0.84
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KN 41 D2 1055.00 8.18 3.62 0.34
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Including 5.03 4.25 0.47
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KN 42 934.65 6.05 1.41 0.09
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KN 42 D2 932.00 8.66 1.11 0.13
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KN 43 1169.60 9.86 2.31 0.09
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KN 44 Drilling in progress
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KN 45 972.20 6.54 1.98 0.18
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KN 46 Drilling in progress
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KN 47 727.00 3.39 1.73 0.46
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KN 48 Drilling in progress
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* Previously drilled boreholes
The Konkola North property is situated in Zambia in the northern part of the Copperbelt, bordering the Democratic Republic of the Congo. The property consists of a single large-scale mining licence covering an area of 44 square kilometres. The Konkola North copper resource is the second-largest known copper resource on the Zambian Copperbelt. TEAL currently has 100% ownership of the Konkola North Copper Project with ZCCM Investment Holdings plc, a company controlled by the Zambian government, retaining the option of buying a stake of up to 20%.
TEAL has completed a feasibility study on the resources defined in the South and East Limb areas of the northern portion of the property, where the copper mineralization is shallow, steeply dipping and accessible through the No. 2 shaft (please refer to the TEAL press release dated April 10, 2008 and which can be found at www.tealmining.com).
To the southern portion of the Konkola North property, the mineralization continues into Area 'A', which is now being evaluated through further drilling. The copper mineralization is generally transgressive and confined to the OS1 Member of the Nchanga Formation, elsewhere known as the Ore Shale Formation. In Area 'A', the mineralized OS1 Member is near horizontal to shallow dipping and extends to a depth of 1,300 metres.
Area 'A' Exploration
SRK reviewed drill core previously drilled in the Area 'A' in order to undertake an initial geohydrological and geotechnical appraisal of the geological formations. Murray & Roberts Cementation (South Africa) (Pty) Limited completed a conceptual engineering design work for a 1,200 metre deep shaft, with costing, and TEAL subsequently completed a financial scoping model of a conceptual mine and a metallurgical processing facility with related infrastructure. The positive result of this assessment study has contributed to the motivation of the 18,000 metre exploration drilling program to further evaluate the resources in Area 'A'.
TEAL has appointed Sphynx Consulting as an independent consultant to conduct the database verification, geological modelling, ore body modelling and resource estimation work. TEAL has appointed SRK as the Qualified Person to complete the Independent Qualified Persons Report on the Konkola North Copper Project. These recent analytical results are certified by ALS Chemex in Johannesburg, South Africa, an internationally accredited facility. TEAL uses standard procedures for the drill sampling, including the appropriate use of Certified Reference Materials, field duplicates and blank samples.
FEASIBILITY STUDY UPDATE
Existing infrastructure at the Konkola North South Limb area includes a 423-metre deep, vertical and concrete lined shaft, with head-frame, two ventilation shafts and three main access haulage levels, interlinked with several production sub-levels.
The Konkola North Copper Project feasibility study is based on an operation to exploit the South and East Limbs, utilizing the previously developed infrastructure that will be re-equipped. TEAL has purchased a Koepe 'men and material' winder, a rock winder and a SAG mill. Considering the readily available infrastructure, TEAL envisages to commence sub-level open stope mining after about 15 months following project release.
The recently upgraded resource base within the South and East Limb areas, independently verified by SRK, totals 51 million tonnes at a grade of 2.35% copper. This resource is now used for mine planning and scheduling, together with a review of capital and operating costs, to finalize an amended feasibility study.
TEAL has undertaken extensive metallurgical test work and the feasibility study includes the construction of a metallurgical plant to produce two million tonnes of copper concentrate for the life of mine resulting in a steady state refined copper metal production of 25,000 tonnes per year.
TEAL has had extensive discussion with the Environmental Council of Zambia and a final Environmental Impact Study has been approved. TEAL has concluded a letter of commitment with the Copperbelt Energy Corporation for the supply of electricity. An agreement, which remains subject to TEAL Board approval, has been signed with Chambishi Copper Smelter Zambia, Limited for the further processing of copper concentrates. Discussions are continuing with the Zambian authorities regarding the recently legislated fiscal regime.
Mr. Claus Schlegel, Pr. Sci. Nat. (No. 400149/90), TEAL's Vice President: Exploration and Business Development, is the "qualified person" for the content of this press release in terms of National Instrument 43-101.
NOTE:
TEAL is incorporated under the laws of the Yukon, Canada and its common shares are listed on the Toronto Stock Exchange ("TSX") and the JSE Limited ("JSE"). The common shares of the Company trade under the symbol "TL" on the TSX and "TEL" on the JSE.
TEAL is a mineral development and exploration company with development projects and exploration areas in Namibia, Zambia, the Democratic Republic of Congo ("DRC"), and Mozambique. TEAL has a portfolio of base and precious metal development projects and complementary exploration areas, and the Company continues to seek other opportunities, mainly in southern and central Africa.
TEAL has targeted specific projects: the Konkola North Copper Project in Zambia; the Otjikoto Gold Project in Namibia; and the Kalumines Copper-Cobalt Project in the DRC. TEAL also has interests in various other mineral licence areas in Zambia and in Namibia on which the Company continues drilling and other exploration activities.
ADDITIONAL TEAL INFORMATION CAN BE FOUND AT: www.tealmining.com
ContactsJulian Gwillim
(VP: Investor Relations and Corporate Development) on +27 82 4524 389 (SA)
or julian@tealmining.com
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