21st Oct 2008 07:00
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21 October 2008 |
AIM: GMA |
GMA Resources Plc
("GMA" or "the Company")
Operations Update
GMA is pleased to announce that, as of last week, the water line from Tanzerouft to Amesmessa is now fully functional over the complete 100 km route. This will reduce operating costs by approximately US$200,000 per month by eliminating the cost of trucking water from Tirek to Amesmessa, which the Company has been doing since the commencement of operations.
Further to the recent announcement of the Government approval for the twin explosive magazines at Amesmessa, ONEX (Office National d'Explosifs), the state owned explosives supplier in Algeria, has informed ENOR spa ("ENOR") that it will deliver 80 tonnes of explosives to Amesmessa on 29 October 2008 and a further 150 tonnes on 15 November 2008. The Board is hopeful that this will be the beginning of a regular explosives supply, which will allow the Amesmessa mine to reach its production potential.
The Company is also encouraged by the comments of His Excellence Dr Chakib Khelil, the Minister of Energy and Mines during a recent press conference. He stated that, in addition to the difficulties experienced by ENOR, the explosives shortage had effected production at lead and zinc mines in the country as well as construction projects. He emphasised that security concerns should not inhibit the development of these industries and that, for the first time, Algeria will begin to import explosives to reduce the local shortages.
Douglas Perkins, Chief Executive Officer of GMA, commented:
"After a number of months of negative news on the production front due to lack of explosives, today's announcement of the scheduled delivery of commercial quantities of explosives and the completion of the water pipeline are both major hurdles for the success of the Company. The commitment of the government of Algeria to import explosives to meet all local needs for the development of the country is a favourable development."
Enquiries:
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GMA Resources Plc |
John East & Partners Limited |
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Douglas Perkins |
Bidhi Bhoma / David Worlidge |
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+1 514 806 6788 |
+44 (0) 20 7628 2200 |
Notes to Editors:
GMA owns a controlling 52 per cent. stake in ENOR, the Algerian based operating company for the Tirek-Amesmessa project, with the remainder owned by Sonatrach, the Algerian state-owned oil and gas company.
ENOR holds the exploitation authorization to the Tirek-Amesmessa property, an area of some 1,417 km2, located approximately 450km south west of the city, Tamanrasset, in southern Algeria. Amesmessa is an open pit heap leach gold mine located in the extreme south of the permit area. The Tirek gold mine is located centrally in the northern third of the exploration permit area, some 60 km north of Amesmessa. Research to date suggests that the Zita Zone, which lies between Tirek and Amesmessa, offers considerable potential for the development of additional prospects amenable to open-pit mining. GMA Resources plans to quickly expand upon resources outside of the major 80km north/south Tirek-Amesmessa fault and other exploration targets on the property.
For further information on the Company, please visit: www.gmaresources.co.uk
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