Teknomining Plc
LSE : TEKP

August 06, 2012 02:00 ET

Award of Iron Ore Extraction Contract

                                                        TEKNOMINING PLC
                                               ("Teknomining" or "the Company")
                                                        (PLUS-SX: TEKP)

                                              Award of Iron Ore Extraction Contract

The  Company is pleased to announce that it has concluded an agreement with Asa Sondaj Insaat Ltd  Sti  for
the  supply  of an All-in Mobilization, Equipment Supply, Supervisory, Operational, Security Personnel  and
Ancillary  Services  Contract  to  extract Iron Ore from its Operation  Licence  Number  200800729  in  the
Hanza/Kandal  region  of Kulp, Diyarbakir, Turkey. This contract will be managed by  the  company's  wholly
owned  subsidiary  Teknomining Madencilik Insaat Ltd Sti. To ensure full flexibility  for  Teknomining  the
duration of this agreement is at the discretion of the company.

As  previously announced the Company completed a Geophysical Ground Magnetic Survey ("the Survey") in  June
2010  over  approximately 80% of our operations area licence number 200800729 and  in  November  2010  also
completed a Geophysical Ground Magnetic Survey and limited Induced Polarisation Survey ("the Survey")  over
the  remaining  approximately 20% of this licence. The surveys confirmed the presence  of  strong  positive
mineralisation anomalies with significant potential reserves of Iron Ore. Previous grab samples taken  from
this  area, independently analysed by OMAC laboratories indicated high grade Magnetite outcrops with up  to
65% Iron Ore and outcrops with high grades of other mineralization to be present in this area.

Key points regarding this announcement

      1)   Asa Sondaj Insaat Ltd Sti is a specialist company founded in 1994, its main areas of expertise are
           as follows:
           
      -    Extraction of base metals and stone, focusing mainly on Iron Ore, Copper, Asphalt and Marble.
      -    Extraction using both Surface (open-pit/strip) mining methods and Sub-surface methods  using
           tunnels/shafts to reach and extract the ore body.
      -    Road Tunnel and Dam construction.
      -    Asa Sondaj Insaat Ltd Sti has successfully completed several projects in the Kulp region.
      
      2)   Overburden and Iron Ore extraction is based on agreed Turkish Lira price per Metric Tonne.
      3)   The Contractor has supplied the necessary Bank References and Trade references thereby ensuring
           its access to sufficient finances and equipment to undertake this assignment.
      4)   The Contractor's area of operation is within the coordinates of the Operation licence number
           200800729 as approved by the Ministry of Energy and Natural Resources access number 3161073 dated 16th
           March 2012.
      5)   The Contractor will comply with all Environmental Regulations applying to the region.
      6)   After initial transportation and set up time, which is scheduled to complete in the second week of
           August, a minimum estimated extraction rate of 20,000 Tonnes of Iron Ore per month delivered to the
           company's stock area is envisaged. Subject to the quality and quantity of grade extracted, and to
           prevailing market prices, and to general economic conditions this estimated extraction rate could
           potentially yield surplus revenue to the Company of up to Euro 300,000 per month. Surplus revenues arising
           from this agreement are anticipated to commence in October of this year.
      7)   The Contractor is responsible for obtaining the necessary explosive licences for extraction as
           required by the relevant authorities.
      8)   The  Contractor  has  no  legal rights against the Company's  Operating  Licence  under  any
           circumstances.
      9)   All employee and plant operating costs are to be borne by the Contractor.

Michael Holden, CEO of Teknomining, commented:

"We  highlighted at our 2011 AGM that an Iron Ore extraction programme was scheduled to commence  mid  2012
subject  to legal agreement. We are therefore delighted to announce our association with Asa Sondaj  Insaat
Ltd Sti given their vast base metal extraction experience in this region.

Given  that  this  extraction agreement is limited within specified predetermined areas  of  our  Operating
Licence  Number  200800729 it gives the Company additional opportunities for further  direct,  royalty  and
joint venture agreements without compromising legal ownership of our Licence.

Expected  income  derived from our Iron Ore extraction will enable further exploration and exploitation  of
our Two Operation Licence and Three Exploration Licence areas"


The directors of the issuer accept responsibility for this announcement.


Contact Details:

Teknomining Plc
Michael Holden, Managing Director
Mob. Ireland: +353 87 249 10 22
Mob. Turkey: +90 534 295 82 61
Email: Teknomining@gmail.com
Website: www.teknomining.com


LHM Casey McGrath
Con Casey, Corporate Adviser
Phone: +353 1 495 9200
Email: Con.casey@lhmcaseymcgrath.ie



About Teknomining



Teknomining  Plc  is  engaged in the investigation, exploration, extraction, processing  and  marketing  of
industrial  and  metallic minerals such as copper, iron ore, nickel, cobalt, gold, aluminium  and  chromium
deposits.

The  Company,  through its wholly owned Turkish subsidiary, had initially secured two exploration  licences
over land areas in the province of Diyarbakir, Eastern Anatolia, Turkey covering an area of c.10.9km.sq and
currently has upgraded these to two full Operation Licences. These licences
grant  the Company certain rights to explore for and exploit "4th Group Minerals" as defined under  Turkish
mining law.

The  Company announced on 23 May 2011 that through its wholly owned Turkish subsidiary it had been  awarded
full  rights  to  three additional Exploration Licences covering an area of c.54.07km  sq.(5,407  hectares)
taking  the  total  number  of licences under management to five - with two Operation  Licences  and  three
Exploration Licences covering a total area of 64.97 km sq. (6497 hectares).

To  date  the  Company  has  undertaken five major Geophysical Ground  Magnetic,  Resistivity  and  Induced
Polarisation  (IP)  Surveys  which  have  shown the presence of strong  positive  anomalies  indicative  of
magnetite's with significant potential reserves in excess of 25 million tonnes of high grade iron ore.

The  Resistivity  and IP Surveys have shown the presence of strong positive anomalies. Four  examples  were
given which indicate massive sulphide and silicated sulphide anomalies. Initial test drilling has indicated
the presence of Nickel, Copper, Cobalt and other metallic minerals.

The latest October 2011 Kulp 200806366 licence Deep IP/Resistivity and Ground Magnetic Report indicates the
presence of a possible Porphyry Anomaly with an estimated size of 48 million M3.

The latest October 2011 Kulp 200800729 licence Deep IP/Resistivity and Ground Magnetic Report indicates the
presence   of  a  possible  Quartz  Porphyry  and  or  intrusive  Anomalies  containing  possible  Sulphide
mineralization with an estimated size of 604 million M3.

The  Groups short term strategy and work programme is to complete further exploration and test drilling  to
confirm the location and level of reserves initially in its two Operational Licence areas.


Teknomining Plc

Contact Information

  • Teknomining Plc