28th Sep 2006 07:00
GMA Resources PLC28 September 2006 28 September 2006 GMA Resources Plc ("GMA" or "The Company") Encouraging Results from Metallurgical Testing at Tirek / Amesmessa Gold Project, Algeria GMA is pleased to announce encouraging results from metallurgical testingundertaken by SGS Lakefield (Johannesburg) ("SGS") at the Tirek / Amesmessa GoldProject ("Tirek / Amesmessa" or "the Project") in Algeria. GMA owns 52% of ENORspa ("ENOR"), the Algerian operating company for Tirek / Amesmessa, with theremainder owned by Sonatrach, the Algerian state-owned oil and gas company. Column leach testing on Amesmessa and Tirek crushed ore samples was completedand results from the testwork indicate that gold extraction results in all sixtests equalled or exceeded the financial model gold extraction figure of 72%. Two of the six column leach tests reached 81% gold extraction, significantlybetter than expected. Three column tests, of which two were Amesmessa ore andone Tirek ore, were leached for an average of 106 days, while the remainingthree columns, two Amesmessa and one Tirek ore, were leached for a total of 162days. The test results on the higher grade Tirek ore sample which ranges between7.2g/t and 7.9g/t Au resulted in high gold extraction - the results are set outin Table 1 as below: Table 1: Parameter Tirek Tirek Amesmessa Amesmessa Amesmessa Amesmessa Amesmessa Column Column Column 1 Column 2 Column 3 Column 4 Average 1 2 Au 74.6% 81.0% 72.5% 78.2% 74.0% 81.2% 76.5%Extraction Head Gradeg/t Au 7.24 7.89 5.66 5.55 5.08 5.07 5.34 ResidueGrade 1.84 1.5 1.56 1.21 1.32 0.95 1.01g/t Au Days 112 162 103 162 103 162 133Leaching NaCNConsumption 0.23 0.59 0.32 0.58 0.27 0.33 0.37kg/t 7 Day AuExtraction 46.9% 49.4% 53.7% 55.0% 52.8% 52.4% 53.5% 20 Day AuExtraction 57.9% 59.9% 61.6% 62.7% 62.0% 62.0% 62.1% Gold recovery for all six tests averaged 77.0% as compared to the gold recoveryfigure of 72.0% used for the financial model. The 162 day tests indicated thatan average recovery of 80% can be achieved on either Amesmessa or Tirek oresabove 5.0g/t Au. Test work results indicate that there is a period of rapidleaching followed by a period of slow but steady leaching and rinsing of goldfrom both Amesmessa and Tirek ores. Agglomeration with cyanide will be done toensure this rapid leaching is achieved in the commercial heap leach operationdue to commence in the first quarter of 2007. Further testwork is planned on lower grade samples to evaluate gold extractionand optimum crush sizes. It appears that there is considerable low grade ore onthe concession that has not been considered for mining in the past, which couldbecome economic with the application of heap leaching. Based on these results,it would seem logical that the next phase of expansion would be a small mobilecrushing and heap leach operation near the Tirek CIL plant to process low gradeore extracted from the Tirek veins, therefore mining the Tirek and Amesmessadeposits simultaneously. In summary, the SGS results indicate that ENOR can expect successful goldextraction results from the Amesmessa heap leach operation in 2007 followingindustry adopted standards and practices for heap leaching gold ores. Thepriority for ENOR will be to fasttrack the construction timetable with emphasison completing the heap leach construction in order to accelerate gold productionand achieve consistent profitability in early 2007. Douglas Perkins, CEO of GMA commented, "We are extremely pleased with thesuccess of the column leaching tests and are particularly encouraged with thehigh percentage of gold recovered after just 7 days of leaching. As this is abetter percentage recovery than that used in our financial model, this shouldhave a considerable effect on our cash flow once in operation." All references to resources and exploration results have been approved forrelease by Mr Ken Norris, Chief Operating Officer for GMA, who has more than 20years experience in the field of activity concerned and is a P. Eng (BC) Canada.He has consented to the inclusion of the material in the form and context inwhich it appears. Enquiries: GMA Resources PlcDouglas Perkins - Chief Executive OfficerTel: +44 (0) 20 7253 7670Mobile: +1 514 806 6788 Philip SecrettGrant Thornton Corporate FinanceTel: +44 (0) 20 7383 5100 Parkgreen CommunicationsCathy Malins / Annabel Leather+44 (0)20 7493 3713 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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