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BERKELEY MINERAL RESOURCES PLC
("BMR" or "The Company")
On 15 June 2012, Berkeley Mineral Resources, the AIM-listed metals processing company, announced the signing of a Memorandum of Understanding ("MoU") with Yunnan Xiangyun Feilong Nonferrous Metal Company ("Feilong"). Feilong is a significant refiner of zinc, lead and associated metals in the Peoples' Republic of China.
Since the signing of the MOU, Feilong have been testing and verifying samples of tailings from BMR's stockpiles at Kabwe, Zambia. It has concluded that processing of the tailings at Kabwe can achieve suitable recovery rates to produce concentrates of more than 40%, up to 48%, which will then be processable into saleable metal.
The MoU is intended to prepare for a Joint Venture ("JV") agreement to be concluded to commercially exploit the mineral resources owned by BMR at the former Kabwe mine. Under the terms of the MOU, exclusivity was reciprocally granted to BMR and Feilong for a period of some six months. While the MOU continues to operate, the exclusivity terms have now lapsed.
To assist with the progressing of the MOU, BMR intends to appoint Ascot Group Ltd ("Ascot") to oversee and manage the design finalisation, installation and commissioning of the lead and zinc beneficiation plant in Zambia. Ascot, based in Macedonia, has detailed knowledge of the Kabwe project and is the initiator of BMR's relationship with Feilong.
Ascot specialises in the processing of zinc and lead resources and technicians from Ascot are due to visit Kabwe in January 2013 to survey and evaluate the existing facilities there prior to the specification being completed for the beneficiation plant.
Masoud Alikhani, Chairman, commented:
"The team at Ascot Group have been intimately involved in our partnership with Feilong since its inception. BMR is pleased to welcome them to the project as substantive technical contributors and sees this as a next step towards the completion of our processing objectives".
Ray Power, CEO of Ascot Group Ltd, commented:
"Having been involved with Feilong and its personnel on this project from day one, I am delighted that our team will lead the project through to the final stages into the production of concentrate. Having a sound understanding of the relevant data and test processing results to work from, Ascot is confident that it can implement an optimised beneficiation process which will be advantageous to both BMR and Feilong".
11th December 2012
This release has been reviewed by Dennis Human, B.Sc. (Hons), Bus. Admin (Hons), MGSSA, Consulting Geologist to the Company, who is a Qualified Person in accordance with the guidance note for Mining, Oil & Gas Companies issued by the London Stock Exchange in respect of AIM Companies.
For further information please contact:
Berkeley Mineral Resources Plc
Masoud Alikhani, Chairman
020 7408 1181
Stewart Dickson / Jonathan Wright (Corporate Finance)
Jeremy Stephenson / Richard Redmayne (Corporate Broking)
020 7107 8000
Lothbury Financial Services
Michael Padley /Gary Middleton
020 3440 7620.