13th Jun 2008 07:00
13 June 2008
Alexander Mining plc ("Alexander" or the "Company")
Operations Update and Grant of Options
AmmLeach® amenability test work results for a high grade zinc oxide sample show over 80% recovery
AmmLeach® amenability testing for clients also commenced on copper and molybdenum oxides
HyperLeachTM amenability test work on nickel sulphides showed excellent recoveries ranging from 80-95%
HyperLeachTM testing of platinum group metals concentrates and ores has commenced
Discussions are continuing with a large number of companies, including several majors, about MetaLeachTM technologies
Reviewing corporate options for worldwide commercialisation of our leaching technologies
Alexander Mining plc, the AIM-listed mining and mineral processing technologies company is pleased to announce the following operations update.
MetaLeach Limited
The Company now has eight amenability test work programmes underway for mining company clients and has so far invoiced four companies and generated its first revenues.
AmmLeach®
Amenability testing has begun on treating copper, zinc and molybdenum oxide ores for mining company clients. Preliminary results for a zinc sample showed over 80% leaching recovery for a high grade zinc oxide sample within 24 hours.
HyperLeachTM
Amenability test work on six different nickel sulphide ores gave excellent recoveries (80-95%) for all ore types. Initial test work on grain size effects showed very high recoveries for +1mm size fraction (+95%) and low to modest reagent consumptions.
Work has commenced on leaching platinum group metals (PGM) concentrates and ores and molybdenum sulphides using the HyperLeachTM process and results are expected soon.
As a result of these positive amenability test work results, the Company is moving to enter into several second phase test work programmes with mining companies.
Martin Rosser, CEO, said: "The latest MetaLeachTM test work results are most exciting and are consistent with our view that our AmmLeach® and HyperLeachTM technologies have major worldwide commercial potential; especially for copper and zinc oxides, and nickel sulphides. We look forward to moving to the next phase of test work for existing clients, as well as further amenability testing for new clients. As part of our business planning, we are reviewing corporate options for the worldwide commercialisation of our leaching technologies"
The Appendix gives a general background on the Company's MetaLeachTM business and the major opportunities in the global base metals industry.
Leon Project Update
As has been previously reported, whilst there is uncertainty about the fiscal regime for mining companies investing in Argentina, the Company is taking a pragmatic view on its options for the scale, and associated financing requirements, of a mine at Leon. Various scenarios are currently being evaluated, especially those that may bring local and/or national alternative financing involvement. Whilst these options are being investigated, the company is continuing aggressively to reduce its costs in Argentina to an appropriate minimum level. Most technical work has been suspended.
Granting of employees', consultants' and directors' options
The Company has granted the following options to directors:
|
Director |
Number of options granted |
Resultant option holding |
|
Martin Rosser, CEO |
1,000,000 |
2,250,000 |
|
Roger Davey, Non-executive Director |
250,000 |
500,000 |
|
Jim Bunyan, Non-executive Director |
250,000 |
500,000 |
|
Emil Morfett, Non-executive Director |
250,000 |
500,000 |
In addition the Company has granted 1,400,000 options to a number of key employees.
All options have a ten year total life, an exercise price of 10p per share with 1/3 vesting every twelve months over a three year period from date of grant.
In addition, the board has approved the replacement of 1.5 million share options currently issued to Dr Nicholas Welham, MetaLeachTM Principal Technical Consultant, with new options with an exercise price of 10p per share, an option life of 10 years, and subject to vesting conditions as follows:
500,000 exercisable on a successful pilot plant demonstration using a MetaLeachTM proprietary leaching technology for a nickel deposit.
500,000 exercisable on a successful pilot plant demonstration using a MetaLeachTM proprietary leaching technology for a zinc deposit
500,000 exercisable on a successful pilot plant demonstration using a MetaLeachTM proprietary leaching technology for either a molybdenum, copper sulphide or platinum group metals deposit
The board considers that, in light of the significant progress with the AmmLeach® and HyperLeachTM technologies, and the need to ensure that Dr Welham remains appropriately incentivised in his research and development work, it is more appropriate to replace Dr Welham's existing share options than to grant additional options with new vesting conditions.
For further information please contact:
Martin Rosser Matt Sutcliffe
Chief Executive Officer Executive Chairman
Mobile: + 44 (0) 7770 865 341 Mobile: +44 (0) 7887 930 758
Alexander Mining plc
1st Floor
35 Piccadilly
London
W1J 0DW
Tel: +44 (0) 20 7292 1300
Fax: +44 (0) 20 7292 1313
Email: [email protected]
Website: www.alexandermining.com
Nominated Advisor and Broker
Alasdair Younie/John Prior
Arbuthnot Securities Limited
Arbuthnot House
20 Ropemaker Street
London
EC2Y 9AR
Tel: +44 (0) 20 7012 2000
Public/Media Relations
Tim Blackstone
Britton Financial PR
62 Britton Street
London
EC1M 5UY
Tel: +44 (0) 20 7251 2544
Mobile: +44 (0) 7957 140 416
Appendix
MetaLeach Limited background notes for editors
With the current buoyant state of the international mining industry, albeit in an environment of upwards operating cost pressures, the Company believes that the desire to embrace new technologies will intensify. As part of its strategy to grow rapidly, the Company has formed MetaLeach Limited to commercialise its proprietary mineral processing technologies.
MetaLeachTM owns the intellectual property to two hydrometallurgical technologies, AmmLeach® and HyperLeachTM, and for which provisional patents have been filed. Both have the potential to revolutionise the extraction processes for many base metal deposits.
Specifically, MetaLeachTM is focused on mineral processing solutions that add value at the mine site. In essence, the leaching technologies are environmentally friendly, cost effective and can be operated under ambient (i.e. atmospheric pressure and temperature) conditions on whole ore using either agitated tanks or heaps. Purification and concentration is achieved using solvent extraction, allowing the production of high value products (i.e. metal powder or sheets).
The AmmLeach® process is a proprietary ammonia based process for the leaching and selective extraction of base metals from high acid consuming and complex ores under ambient temperature and pressure conditions. It has particular potential for copper and zinc oxide deposits. The process utilises ammonia-based chemistry to selectively extract metals from ores.
Over and above its application for high acid consuming ores, it is also a far more selective process and offers a number of significant benefits, including environmental, compared to conventional acid leaching processes.
HyperLeachTM has been developed for the extraction of base metals, especially copper, zinc, nickel and cobalt, from sulphide ores and concentrates. This is potentially a major breakthrough for the global mining industry. Currently, nearly all base metal sulphides are concentrated on-site using froth flotation before being shipped off site to a smelter and refinery for further processing. The costs involved in selling an ore concentrate include road transport, shipping, smelter and refinery charges and can include penalty costs imposed by the smelter that are deducted from the payable metal in the concentrate supplied. In addition, in many situations mine owners may not be paid for valuable metal by-products contained in the concentrate. Taken altogether, these charges and costs can amount to as much as 40% of the value of the contained metal produced from a mine.
There is considerable scope to do more on-site processing to add value using hydrometallurgy to generate higher returns for mine owners. The HyperLeach™ process has been developed to produce high value metal products on-site at competitive operating costs and relatively low capital costs. The process utilises a chlorine based oxidant to oxidise the sulphide, thereby allowing the metals to solubilise. Unlike previous chlorine based processes, HyperLeach™ does not require chlorine gas to operate and the oxidant can be generated on-site using off the shelf technology. A key feature of the HyperLeach™ process is that it operates at ambient temperatures and pressure and is eminently suitable for heap leaching as well as tank leaching; the choice is dictated by the grade and deposit economics. Polymetallic deposits can be readily handled using standard solvent extraction and solution purification techniques.
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