REG - Firering Strategic - Commissioning Commences at Lime Plant

Firering Strategic MineralsAnnouncement

30/08/2023 07:00

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RNS Number : 7244K  Firering Strategic Minerals PLC  30 August 2023

 

Firering Strategic Minerals plc / EPIC: FRG / Market: AIM / Sector: Mining

 

30 August 2023

Firering Strategic Minerals Plc

 ("Firering" or the "Company")

 

Commissioning Commences at Limeco Resources' Lime Plant

 

Firering, an exploration and development company focusing on strategic
minerals, is pleased to announce the successful commissioning of the crushing
system to produce aggregates and the finalisation of the design work for the
modification and commissioning of the lime kilns at the Zambian Lime plant
owned by Limeco Resources Limited ("Limeco").  Firering has an option to
acquire up to 28.33% (RNS: 17 August 2023) of Limeco, which is expected to be
profitable and delivering cashflow within 12-24 months.

 

Highlights

·    Successful commissioning of the crushing system:

o  Two-stage crushing circuit with an installed primary throughput of 500tph
of limestone.

o  Crushing system adapted to produce aggregate to enhance cashflow during
kiln renovations.

o  Ramping up of aggregate production during the coming months with first
aggregate sales expected shortly.

o  Estimated stockpile of over 250,000 tonnes waste rock available for
initial production of aggregate.

o  Aggregates are mainly used in the construction industry to support
foundations, provide drainage and to produce concrete and asphalt.

·    Final design work to upgrade all eight kilns has been completed:

o  Firering's technical team is assisting the local technical team with
upgrade design.

o  Commissioning of the 8 kilns expected to commence gradually with the first
two kilns expected to be commissioned during Q4 2023.

o  Estimated limestone stockpile of over 150,000 tonnes available for initial
production of quicklime while reopening the existing limestone quarry with an
estimated in-situ resource of 73.7Mt @ 95.3% CaCO(3).*

o  Discussions for quicklime offtake by major copper producers are advancing.

 

Yuval Cohen, Chief Executive Officer of Firering, said:

"We are excited to announce the successful commissioning of the crushing
system that has produced its first aggregate by crushing waste from the waste
stockpile at Limeco.  Limeco is now in the process of ramping up this
aggregate production, which will enhance its cashflow during the kiln
modifications and plant commissioning.  Once commissioned, limestone feed
will come from the existing c. 150,000t stockpile adjacent to the primary
crusher.  Design work for the kiln commissioning is also completed and the
eight kilns will be modified two at a time, with the first two kilns planned
for commissioning during Q4 2023.

 

"Firering's decision to enter into the option agreement with Limeco Resources
was led by the opportunity to provide our shareholders with exposure to a
project that can be brought into production relatively quickly, capable of
delivering cashflow in a relatively short space of time.  We will continue to
update shareholders on the progress made on site as we work with our partners
to advance this quality project to production."

 

*** ENDS ***

 

 For further information and updates on Firering's exploration programme,
visit www.fireringplc.com or contact the following:

 

 Firering Strategic Minerals                     Tel: +44 20 7236 1177

 Yuval Cohen

 Vassilios Carellas
 SPARK Advisory Partners Limited                 Tel: +44 20 3368 3550

 Nominated Adviser

 Neil Baldwin / James Keeshan / Adam Dawes
 Optiva Securities Limited                       Tel: +44 20 3137 1903

 Broker

 Christian Dennis / Daniel Ingram
 St Brides Partners Limited                      T: +44 20 7236 1177

 Financial PR                                    E: firering (mailto:firering@stbridespartners.co.uk) @stbridespartners.co.uk

                                               (mailto:firering@stbridespartners.co.uk)
 Ana Ribeiro / Susie Geliher / Isabelle Morris

 

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

*The non-JORC compliant resource is based on all available drilling data as at
August 2017. The Mineral Resources estimates are at this stage reported as an
in situ Mineral Resources estimate only, as further work is required in order
to be able to report the Mineral Resources estimates in accordance with the
guiding principles and minimum standards set out in the 2012 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves" (the JORC Code) and the Company's internal estimates, which are
also not JORC  compliant, are still subject to verification, validation, and
external review; accordingly, such numbers are provided  for guidance only.
There can be no guarantee the final JORC-compliant resource estimate will
reconcile with these early-stage calculations. The Company intends to
commission a JORC compliant report when operations have been fully
commissioned.

 

Notes to Editors:

 

Firering Strategic Minerals

Firering Strategic Minerals plc is an AIM-quoted mining company focused on
exploring and developing a portfolio of mines producing strategic minerals in
Côte d'Ivoire, specifically lithium and tantalum, to support the global
transition to net zero emissions. It operates the Atex Lithium-Tantalum
Project in northern Côte d'Ivoire, which is prospective for both lithium and
tantalum.

 

Firering's main focus is working together with Australian diversified minerals
company Ricca Resources to advance development at Atex with a view to
establishing a maiden lithium resource and then progressing a Lithium project
through to DFS.  Firering is also assessing pilot scale production of
ethically sourced tantalum and niobium to generate early revenues and support
further exploration work.  Should pilot production be successful, a
large-scale tantalum production facility may be developed, which will be
supported by a debt facility of FCFA 5,057,000,000 (approximately
€7,500,000) currently under negotiation to fund the entire scale-up plan to
develop a portfolio of ethically sourced mineral projects in the Côte
d'Ivoire, supplying EV batteries, high tech electronics and other fast-growing
end markets.

 

Firering also has an option to acquire up to 28.33% of Limeco Resources
Limited which is commissioning a lime plant in Zambia and is expected to reach
full production and first sales by the end of 2023.

 

Limeco Resources

Limeco was initially established by Glencore plc due to the shortage of
quicklime in Zambia and the need for quicklime at its Mopane operations in
Zambia. In total, over $US100m has been invested in establishing the limestone
quarry and constructing the current lime plant.  The lime plant consists of a
two-stage crushing circuit with an installed primary throughput of 500tph of
limestone, and a quicklime production unit comprising eight kilns for burning
crushed limestone to produce between 500 and 600 tonnes of quicklime per day.

 

In October 2017, Golder Associates visited Limeco and produced an in-situ
mineral resource estimate of 73.7Mt @ 95.3% CaCO(3) (Source: Golder
Associates, report 1776596-002-R-Rev0, 05 October 2017).

First geological mapping and diamond drilling were completed in 2012 when 37
drill holes were drilled with an average depth of 66m for a total of 2,517m.
This was followed by the development of a resource model in 2013.  A further
drilling programme (23 drillholes totalling 1,610m) was then completed
southeast of the drilling done in 2012.  This was followed in 2017 with an
infill drilling programme comprising another 65 drillholes totalling 4,022m.

 

Limestone production from the quarry commenced in March 2016 and ceased in
January 2017.  Crushed limestone (-90mm +60mm) was fed to only two kilns
during that time.  The majority of the blasted limestone was stockpiled
adjacent to the primary crusher and will serve as initial feedstock when the
kilns are being commissioned.  The circa US$100 million investment was made
via a shareholders' loan into Limeco. This loan remains outstanding to the
current Vendors of Limeco, in proportion to their shareholdings.

 

Forward-Looking Statements

This announcement may contain some references to forecasts, estimates,
assumptions and other forward-looking statements. Although the Company
believes that its expectations, estimates and forecast outcomes are based on
reasonable assumptions, it can give no assurance that they will be achieved.
They may be affected by a variety of variables and changes in underlying
assumptions that are subject to risk factors associated with the nature of the
business, which could cause actual results to differ materially from those
expressed herein.

 

 

 

 

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