18th Jan 2010 07:00
NOVENTA LIMITED
("Noventa" or the "Company")
[AIM: NVTA]
Trading Update
18 January 2010
Further to the announcement made on 17 December 2009, Noventa is pleased to announce the finalization of its strategic plan for restoring production at the Marropino mine and the recruitment of a Portuguese speaking Mozambican engineering manager. The previous mistakes in extraction and production as well as the process design have been identified and verified by test and inspection. The new plan, that has been subjected to peer review, avoids these pitfalls, while allowing the maximum reuse of existing equipment, much of which has been refurbished during the past few months. New equipment is being purchased from standard production items that can be modularized for installation to further reduce technical risk and can later be used in other locations.
Now that Noventa's design for its Marropino mine is finalized, the directors continue to expect that initial production will commence around March 2010. The first phase will use previously mined tailings, followed by a later phase using the previously mined and rejected oversize material. The final phase will be the restoration of the pit and the processing of the main ore body. This phased approach allows a steady build up of production, confirming each stage of the process plant and developing the competence of operation and its new team in a controlled and measured way. The three phases are planned to be complete this year. Mr. Peter Cox is the project director, where his extensive experience of mine design and mine operation - including specific experience of tantalum mining operations in Africa, will ensure optimum performance.
As part of the implementation plan, and in order to minimize shareholder risk, the Company will recommence the processing operation with specific performance bonds in place to meet pre-set goals, including incentives for exceeding performance targets and corresponding penalties for the underperformance.
Noventa announced on 20 November 2009 that an exploration program was being designed to evaluate the Company's other licence areas in Mozambique. As the first phase of this program, the Company will undertake geological work at Mutala in the next few weeks.
This geological investigation is part of the development of a National Instrument 43-101 compliant report on the Company's licence areas, in preparation for a possible Toronto Stock Exchange dual listing later in the year.
In addition to the recruitment of a Mozambican Engineering Manager, Noventa is also strengthening the local managerial and administrative team with Mozambique staff at its operational headquarters in Maputo, Mozambique, led by the CEO and CFO, further reinforcing the Company's commitment to local representation in Mozambique.
Commenting, Eric Kohn TD, Chairman of Noventa said:
"We continue to be encouraged by the anticipated commencement of economic production of tantalum concentrate from the Marropino site shortly, having taken steps to minimize risks where possible and to ensure that the mistakes of the past are not repeated. The mission is to be an efficient low cost producer of tantalum concentrate. We are consciously working so that our only operating subsidiary in Mozambique will be a good citizen with best practice and a social economic strategy at the same time as maximizing shareholder value. Our CEO John Allan and his team have worked extremely hard to achieve this approach which was agreed and communicated to shareholders when our team assumed control."
For further information please contact:
Eric F. Kohn TD
Chairman
Noventa Limited
+41 22 8500560
+41 79 5030150
www.noventa.net
Nick Harriss/Emily Staples/Ben Jeynes
Blomfield Corporate Finance Limited
+44 20 7444 0800
Daniel Briggs
Religãre Hichens, Harrison plc
+44 20 7444 0500
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