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Laboratory scale metallurgical test work on core from the Nxuu Zinc/Lead Resource in Botswana has confirmed that zinc recoveries of 93% can be achieved from acid leaching over 12 hours, at 25 deg C. As a consequence, Zinc metal can be produced on site by electro-winning.
As previously announced, zinc mineralisation at the Nxuu deposit is hosted within Smithsonite and, as expected, has now proven to be amenable to acid leaching. Bulk testing will need to be conducted to substantiate this laboratory test work.
Subject to confirmation by bulk testing, this now means that all of the Nxuu resource and a portion of the Kihabe resource, which combined represent about 50% or 12 million tonnes of the total project resources (refer Resource Statement attached), can now be acid leached to produce zinc metal on site from electro-winning. The production of metal on site, as opposed to the transportation of concentrate, will have a positive effect on project margins.
At both the Kihabe and Nxuu deposits the Company has encountered supergene Vanadium credits from assaying, in the regions of 300ppm to 800ppm. One intersection yielded 8m @ 0.3% V from 10m depth (KRC016 reported June 2006 Quarterly). Whilst no resources for Vanadium have been established at this stage, there is a possibility that Vanadium can be recovered from solutions produced through acid leaching. Further shallow drilling within the confines of the known resources and assaying will need to be conducted to establish any Vanadium