Adelaide, Feb 5, 2007 AEST (ABN Newswire) - Aim Resources Ltd (ASX: AIM) is pleased to announce that it has received the Mining Exploitation Licence for its Perkoa Zinc Project following endorsement from the President and Ministers of the Government of Burkina Faso at a Cabinet Meeting on Friday 2/2/07.
Following a A$27.3 million capital raising last quarter the company is primed to rapidly advance construction at the Perkoa site. Excavation work has continued on the box cut for the decline development (see photo) and contractors are now preparing to mobilise to site following the receipt of required exploitation permit issued by the Government of Burkina Faso.
The company is finalising the balance of the required funding package for the project at present and will update shareholders shortly in this regard.
Perkoa Zinc - Project Background
The Perkoa Zinc Project is located in the Sanguie Province of Burkina Faso, 120km west of the capital Ouagadougou. The project is 35km by road from the country's third largest town, Koudougou, which is linked to neighbouring states of Cote D'Ivoire, Ghana and Togo by tarred roads and by rail to Abidjan, capital of Cote D'Ivoire.
Perkoa has a JORC-compliant Ore Reserve of 6.3 million tonnes at a mine head grade of 14.5% zinc, equating to 907,679 tonnes of contained zinc metal. The Perkoa deposit is a volcanogenic massive sulphide ('VMS') deposit and the Perkoa licence area has excellent exploration potential for additional VMS deposits.
Project development commenced during the December 2006 quarter with DRA Mineral Projects as the Engineering, Procurement and Construction Manager for the Perkoa plant and infrastructure. Byrnecut Mining is the managing contractor for the construction and mining of the underground mine.
A number of positive changes have been made to the Perkoa development plan since the Bankable Feasibility Study ('BFS') was completed in late 2005. AIM Resources, in conjunction with Byrnecut and DRA, has reviewed the mine development plan and processing plant design in the Perkoa BFS. This optimisation work adds significant value to the project by bringing forward full production status.
The mine design consists of decline access to the ore body, ramping up to deliver 0.5 million tonnes per annum of ore. A simple processing facility comprises a crushing circuit followed by dense media separation, milling and flotation, resulting in the production of 130,000 tonnes per annum of relatively clean concentrate, grading 53% zinc over a 12 year mine life.
Plant infrastructure in the study includes a tailings dam facility incorporating a return/storm water dam for capture and re-use in the processing plant. The main source of process water will be from a dam that has recently been constructed by the Burkina Faso Government, close to the Perkoa Zinc Project. Power will be provided by on-site diesel generators.
Letters of Intent have been signed with three parties for the off-take of zinc concentrates with Xstrata Zinc, Votarantim Metais and Louis Dreyfus Commodities. These three off-take partners will provide Perkoa with a secure, long-term market, attractive sales terms and flexibility in concentrate sales. The geographic proximity of Perkoa to the chosen markets will provide commercial benefits to AIM Resources as well as these partners.
Perkoa's high-grade, clean concentrates are eagerly sought after and will provide a very attractive feed for zinc smelters. The current global shortage of zinc concentrates and the historically high zinc price provides favourable returns for zinc mines and smelters and augurs well for the future of the Perkoa Zinc Project.
Contact
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
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