1st Nov 2007 07:01
Carnegie Minerals plc01 November 2007 1 November 2007 Carnegie Minerals Plc ("Carnegie" or the "Company") Carnegie Signs Iron-Nickel Exploration Agreement Carnegie Minerals Plc (AIM - CME), the mineral sands resource company withproduction interests in The Gambia and advanced exploration in adjoiningSenegal, is pleased to announce it has entered into an agreement with WesternAustralian based private resource exploration company, Asia Resources 168Limited (ARL), to fund a staged exploration programme for iron and nickellaterite mineralisation on the island of Obi, Indonesia. ARL holds interests ina SKIP licence (temporary prospecting permit) in the southern part of Obi Islandand plans to apply for further areas identified by Carnegie. Carnegie has agreed to fund staged exploration and evaluation programmes to theextent of the first USD 1 million at which point it will be deemed to haveearned a 50% interest in the CME - ARL OBI Island Project. Carnegie has theright to withdraw at any stage prior to expending this amount, however willretain no equity in the Project. Carnegie shall be the operator undertaking theexploration work with ARL responsible for logistics and local governmentrelations. Obi Island is situated midway between Irian Jaya and Sulawesi. It is part of theSulawesi - Halmahera ophiolitic belt that hosts some substantial nickel lateritedeposits including some under development and in production and is consideredhighly prospective for new discoveries. Indonesian (partially government owned) mining company, PT Antam Tbk (Antam),which is also listed on the Australian Stock Exchange (ASX Code: ATM) hasannounced exploration results for the western part of Obi, outside of theCME-ARL Obi Island Project area. Antam has reported sizeable nickel lateritedeposits within its tenement areas with grades from 2.2% Ni (saprolite) to 1.5%Ni and 43% Fe (limonite) in a typical tropical laterite profile. Carnegie will target these types of deposits that have recently attracted muchattention as a source of low-cost, direct supply of iron and nickel feedstockfor metallurgical plants in Asia. Strong economic growth in China and othermajor economies in the region is driving demand for such feedstock. Carnegie has the option to convert its 50% interest in the project to a grosssales royalty of 1% after it has expended USD 1 million or 2% if it hascontributed to the extent of USD 2.5 million or greater. Carnegie and ARL hope to use this initial project as a basis for co-operation onother similar prospects within Indonesia where ARL has extensive strategicinterests. Carnegie Managing Director Alan Hopkins said "This new project is part of a solid growth plan for the Company, using theskills developed in our West African projects and applying them to bulkcommodities in new prospective regions. "It has always been part of Carnegie strategy to leverage our expertise inmineral exploration and development in West Africa to further projects inindustrial minerals and bulk commodities internationally. We are confident thatthis blossoming relationship with ARL will lead to further significant valueenhancing projects." - Ends - For further information, call: Alan Hopkins, Managing Director, Carnegie Minerals Plc 020 7831 3113Romil Patel / Olly Cairns, Blue Oar Securities Plc 020 7448 4400 / + 61 8 6430 1631Billy Clegg /Edward Westropp, Financial Dynamics 020 7831 3113 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
BHR.L