Zedex Minerals Limited (ASX:ZDX)
Auckland, May 11, 2009 AEST (ABN Newswire) - Zedex Minerals Limited (ASX:ZDX) is pleased to circulate the attached news release from Olympus Pacific Minerals Inc (Olympus), a company in which Zedex has an approximate 31% shareholding. The Bong Mieu Gold plant modifications have delivered above expectations with April production showing an increase of more than 250% compared to the monthly averages achieved in 2008. These modifications represent the first phase of Olympus' plans to expand production over the next four years to some 150,000 to 190,000 ounces of gold on an annualized basis.
Zedex is firmly of the belief that the recently completed upgrades to Olympus' Bong Mieu Gold Plant as well as the commencement of treating high grade ore from its Phuoc Son mine are extremely positive developments. Olympus has a total gold Resource in Vietnam of 1.61 million ounces (refer to release dated 23 March 2009) and is now well placed to rapidly scale up production and move towards overall profitability.
Paul Seton said "the directors believe that Zedex's asset portfolio has real value and the market has not yet realised that the Company's market capitalisation is less than the value of its holding in Olympus":
- Zedex holds a 2% gross production royalty over the sales from the Bong Mieu Mine;
- Zedex's investment in Olympus has a present market value of approximately AUD$22 million.
- Zedex's Bau property (Zedex interest 50.05%) in Sarawak, Malaysia has a JORC status gold resource of 1.612 million ounces (refer to release dated 27 November 2008).
"The market also fails to attribute any value to Zedex's control of Bau which has medium term production capability."
Contact
John Seton
Chairman
Tel: +64-9-379-8787
Email: John.Seton@zedex.com.au
Paul Seton
Managing Director
Tel: +64-9-379-8787
Email: Paul.Seton@zedex.com.au
Rod Murfitt
Chief Geologist
Tel: +64-9-379-8787
Email: Rod@zedex.co.nz
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