Alexander Mining plc

March 04, 2011 06:30 ET

Alexander Mining plc: Positive Testwork Result on Torlon Hill Zinc Oxide

- AmmLeach® amenability testwork on selected representative samples from the Torlon Hill zinc deposit, with a head grade of greater than or equal to 6.99% zinc, resulted in an average zinc dissolution of 79%; this shows that zinc recoveries of greater than 75% should be achievable

- Alexander to develop a conceptual process flow sheet for a treatment plant to produce zinc metal using AmmLeach®

- Collaborative relationship with Firestone to target further opportunities to use AmmLeach® on Firestone's zinc oxide projects in Guatemala and Nevada.

LONDON, UNITED KINGDOM--(Marketwire - March 4, 2011) - Alexander ('Alexander' or the 'Company') (TSX VENTURE:AXD)(AIM:AXM) and Firestone Ventures Inc. ('Firestone'); (TSX VENTURE:FV)(FRANKFURT:F5V) are pleased to announce that AmmLeach® amenability test work conducted by Alexander's wholly owned subsidiary, MetaLeach Limited ('MetaLeach'), for Firestone on its Torlon Hill zinc oxide project ('Torlon Hill') in Guatemala produced highly favourable results.

For eleven selected representative zinc oxide ore samples, where the head grade assays were ≥ 6.99% zinc, the average zinc dissolution using AmmLeach® was 79% and hence potentially high recoveries of >75% should be achievable. It is anticipated that recoveries can further be improved by optimisation of the leaching conditions.

As a result, Firestone has requested Alexander submit a conceptual process flow sheet for Torlon Hill and a plan for substantial additional next stage testwork. The conceptual flow sheet will be for a heap leach solvent-extraction electro-winning ('SX-EW') treatment plant using AmmLeach®. The conceptual flow sheet could be the precursor to a decision by Firestone to commit to a full feasibility study for Torlon Hill using AmmLeach®. Commercial terms would be agreed between Firestone, Alexander and MetaLeach at that time. 

Additionally, Alexander and Firestone have agreed to work together collaboratively to identify and target other high acid-consuming, carbonate-hosted zinc oxide opportunities in Firestone's portfolio which may be suitable for using AmmLeach®.

Martin Rosser, CEO of Alexander, said:

"We are delighted to be working with Firestone on investigating the use of AmmLeach® at its Torlon Hill zinc oxide project. Firestone has been advancing assiduously its zinc exploration activities in Guatemala and has built up an extensive zinc oxide property portfolio. This step is a significant one in Alexander's aim of demonstrating the commercial use of AmmLeach® for processing high grade zinc oxide deposits."

Lori Walton, President and CEO of Firestone, said:

"We are very pleased with the initial results using the AmmLeach® process showing that potential recoveries of over 75% zinc could be achievable. Further work is warranted and we plan to work together with Alexander Mining on developing a conceptual flow sheet that will provide valuable information for a future feasibility study."

Firestone Ventures Inc. is advancing its road-accessible Torlon Hill zinc-lead-silver project in Guatemala, Central America. The combined Measured and Indicated Resource totals 1,891,636 tonnes grading 7.32% zinc, 2.41% lead and 14.25 g/t silver (at a 3% zinc-equivalent cut-off). An additional 169,705 tonnes is classified as inferred resources grading 4.42% zinc, 1.96% lead and 12.53 g/t silver (see news release Nov. 18, 2008). In addition, there is a basal zone of unoxidized sulphide mineralisation which is not yet well defined by the drilling to date. The deposit is open to expansion and high-grade zinc oxide mineralisation defined to date is on or near surface. Smithsonite (ZnCO3) is the prevalent zinc mineral at Torlon Hill, occurring as a replacement to limestone, and resulting in high grade mineralisation locally exceeding 40% zinc. Other non-sulphide zinc minerals are relatively rare and there is no evidence of deleterious zinc-clay minerals such as sauconite. Firestone has been dedicated to developing and maintaining supportive community and government relationships at Torlon Hill and in Guatemala. 

As well as Torlon Hill, Firestone has a significant land position throughout a historical carbonate hosted zinc-lead-silver district extending across a 250km belt in Guatemala. Scant modern exploration has taken place in the carbonate belt despite the historical mining of numerous oxide and sulphide zinc occurrences on surface. Firestone is currently evaluating and sampling a number of these occurrences. In addition, Firestone is working on drilling its zinc oxide prospects in Nevada, U.S.A.

Alexander is a mining and mineral processing technology company with a reputation for strong technical management, allied with financial markets' expertise and experience. Through its wholly owned subsidiary MetaLeach Limited, it is solely focused on the commercialisation of its proprietary mineral processing technology. 

Certain of the statements made and information contained in this news release constitute 'forward looking information' within the meaning of applicable securities legislation. All information and statements which are not historical facts included herein, including without limitation, those regarding the Company's proposed joint venture with Anvil Mining Limited, the construction and development of the Pilot Plant, management's business strategy, and plans and objectives of management for future operations, constitute forward looking information. In many cases, forward looking information can be identified by words such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "potential", or other similar terminology. Such statements reflect management's current expectations regarding future events and involve numerous assumptions, risks and uncertainties both general and specific to the Company and the industry in which the Company operates. Such assumptions, risks and uncertainties include, but are not limited to, the ability of the Company to obtain financing to fund the joint venture and the construction of the Pilot Plan, the market conditions affecting the availability and terms of such financing, and the ability of the Pilot Plant to generate revenue once built. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of the Company and the joint venture may vary materially from those described in this document. Accordingly, readers are advised not to place undue reliance on forward looking information. Except as otherwise required by law, the Company does not intend to and assumes no obligation to update or revise forward looking information, whether as a result of new information, plans, events or otherwise.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Alexander Mining plc
    Martin Rosser
    Chief Executive Officer
    Mobile: + 44 (0) 7770 865 341
    Alexander Mining plc
    Matt Sutcliffe
    Executive Chairman
    Mobile: +44 (0) 7887 930 758
    Alexander Mining plc
    1st Floor, 35 Piccadilly
    London, W1J 0DW
    +44 (0) 20 7292 1300
    +44 (0) 20 7292 1313 (FAX)
    Nominated Advisor and Broker
    Ambrian Partners Limited
    Samantha Harrison / Jen Boorer
    +44 (0) 20 7634 4700
    Public/Media Relations
    Britton Financial PR
    Tim Blackstone
    +44 (0) 20 7242 9786