Earthstone Metals Group

Earthstone Metals Group

December 22, 2009 05:48 ET

Earthstone Metals Group Announces Expansion of its Operations to Zambia, Africa, with Acquisition of Exploration Rights for Copper Tenement

LUSAKA, ZAMBIA--(Marketwire - Dec. 22, 2009) - Earthstone Metals Group, ("Earthstone" or the "Company") is pleased to announce that according to the approved Business Development Plan it has completed actions to expand its operations to Africa. This week a local subsidiary was established in Zambia after execution of a definitive Joint Venture agreement with Zambian company M/s Aupie Agro Foam Limited. "Earthstone Resources (Zambia) Ltd." shall jointly explore and mine the Mufumbwecopper project located in Solwezi Province, nearby proven copper development areas of Kansanshi and Lumwana.

After acquisition of economic interest in Indonesian zinc development earlier this month, the Mufumbwe effort represents the first endeavor of Earthstone Metal Group in Africa, thus expanding and diversifying its asset portfolio with copper. It is strategically located within the well-known Copperbelt in the North-Western Province - 270kms away from the nearest city of Solwezi. It spreads across a total area of 1,600-2,000Ha and offers high quality 5-6% copper (oxidized and sulphides).

Commenting on the acquisition, Earthstone Metals Group Head Mr. S.K. Naik said: "We continue to look for growth opportunities through mergers and acquisitions as directed by our shareholders. This promising Zambian resource estimates indicate the project has excellent potential to make a substantial contribution to Earthstone's growth profile."

The company plans to take up detailed exploration program at the mine concession area in the month of February 2010. The program will entail geochemical prospecting, pitting and trenching in the first phase followed by drilling work in phase two in order to establish the reserve of the deposit for carrying out mining operation. Mining of ore will be by opencast and will be processed for production of copper concentrate. 

Mr. Hemanshu Mehta, Managing Director Earthstone Resources (Zambia) Ltd. stated: "As it is the common rule with all Earthstone Holdings projects, we are committed to transparent operations in our evaluations and development of the Mufumbwe project. At the same time we shall closely look into possibilities to participate in the Zambia Extractive Industries Project (ZEIP) thus ensuring equitable benefits for the local population."

Taking the Mufumbwe project as the initial endeavor in Africa, the Company's current focus is on developing of a significant operating division in Zambia and continuing to extend its undertakings in the country based around the Mufumbwe project. 

About Earthstone Metals Group

Earthstone Metals Group, part of the Earthstone Group (Earthstone Holdings, Ltd.), is a mining company focused on identifying, and developing non-ferrous minerals mining assets globally. The company is headquartered in Dubai (UAE) with primary operations in Indonesia. The Mufumbwe project is the second in its portfolio after acquisition of economic interest in zinc project in Java, Indonesia.

About Earthstone Group

Earthstone Group is a diversified multinational Group with established presence in Mines and Minerals and developing interests in Energy, Roads, Airports, Ports, Rail Networks and other associated Infrastructure. Acting through its subsidiary companies the Group secured 100% Economic Rights in Coal, Iron Ore, Lead Ore and Manganese Ore properties in Indonesia. We are actively pursuing opportunities in a number of Asian and African countries for Coking Coal, Uranium, Gold and Thermal Coal Mining.

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