REG - Firering Strategic - Quicklime Project Update

Firering Strategic MineralsAnnouncement

05/11/2024 07:00

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RNS Number : 8706K  Firering Strategic Minerals PLC  05 November 2024

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

 

5 November 2024

Firering Strategic Minerals plc

("Firering" or "the Company")

 

Quicklime Operational Update

 

The first gasifier's arrival marks a major milestone in Limeco's plant
renovation

 

Firering Strategic Minerals plc, an emerging quicklime production and critical
mineral exploration company, is pleased to announce an operational update with
regards to its quicklime project in Zambia ("Limeco"), which is being
fast-tracked towards the start of phased commissioning in Q4 2024.

 

HIGHLIGHTS

·    Key modifications to the first of eight kilns are nearly complete,
which will significantly improve operational efficiency and lower the plant's
operating costs.

·    Aggregate crushing operation continues to perform well, supporting
positive cash flow.

·    Positioned to commence production immediately on commissioning of
Kiln 1 in Q4 2024 with kiln stockpile now standing at +15,000 tonnes.

·    Newly built pilot kiln performing effectively, with promising burn
test results.

·    Positive off-take discussions progressing well, driven by Limeco's
strong production capacity and commitment to quality control, attracting
notable market interest.

·    Updated JORC-compliant Mineral Resource Estimate anticipated in
November 2024.

 

Yuval Cohen, Chief Executive of Firering, said: "We are delighted by the rapid
progress at Limeco, including the installation works for the first gasifier,
which marks a key milestone in the plant renovation strategy. Modifications to
the first kiln are nearly complete, with commissioning of both the kiln and
gasifier targeted for Q4 2024. Laboratory test work has also accelerated,
supported by the completion of a pilot kiln, which has yielded initial
quicklime (CaO) results between 92% and 94%. This progress is driving
productive discussions with prospective clients, and accordingly we are
optimistic about securing long-term offtake agreements.

 

"The upcoming two months promise to be extremely busy as we work toward the
production start target, with a steady stream of news expected. This includes
the release of an updated Mineral Resource Estimate as Limeco positions itself
to meet the rising demand from Zambia's growing copper production market."

 

DETAILS

Limeco's quicklime project remains on track for phased commissioning to start
in Q4 2024 with critical modifications to the first of eight kilns largely
complete. Key to this is the conversion of the fuel source for these kilns
from Heavy Fuel Oil ("HFO") to coal gasification, which will significantly
enhance the operational efficiency and reduce operating costs of the plant.

 

Additionally, the aggregate crushing operation is continuing to perform very
well, underpinning positive operational cashflow as well as providing an
increasing stockpile for the kilns, which is now in excess of 15,000 tonnes.

 

Coal gasifier

The first gasifier arrived on site and is now being erected.

 

Figure 1: Parts of gasifier arriving at Limeco, 29 October 2024.

 

Figure 2: Parts of gasifier being off loaded at lime plant, 29 October 2024.

Figure 3: Erection of gasifier

 

Modifications to Kiln 1

Work is progressing well for the commissioning of Kiln 1 by the end of Q4 2024
with the following activities concluded or in progress:

 

 Item                         Status                       Comment
 Discharge cone               Completed & operational      Increased discharge opening
 Rotary table                 Completed & operational      Modified opening
 New skip hoist brakes        Completed & operational      Single drum changed to double
 New discharge gates          Not completed                Awaiting arrival on site
 New burner ports             Not completed                Arrived & being installed
 Feed conveyor to skip hoist  Completed & operational      -
 Skip hoist                   Completed & operational      -
 Pan conveyor                 Completed & operational      -
 Roller crusher               Completed & operational      -
 Bucket elevator              Completed & operational      -
 Silo discharge end           Not completed                Work in progress
 Modified exhaust stack       Completed                    Installed on 30 October 2024

 

Figure 4: View of refurbished hoist structure (blue) and refurbished skip
(orange).

 

Coal storage facility

Work on the coal storage facility, from where the coal will be conveyed to the
coal gasifier, is 40% completed.

 

Figure 5: View of incline ramp from coal storage facility to coal gasifier.

 

Crushing plant

The newly installed impact crusher is performing well with over 60,000 tonnes
of limestone crushed.  The kiln feed, sized -90mm to +60mm, is stockpiled
near the lime plant and now totals 15,000 tonnes. Furthermore, aggregate
production from the minus 60mm stream is also going well and contributing 50%
to Limeco's positive operational cashflow.

 

 

Figure 6: View of part of the kiln feed with lime plant in the background.

 

Laboratory

The recently constructed pilot kiln is performing well with burn tests giving
good results; initial test results showed available quicklime ranging between
92% and 94%.

 

 

Figure 7: Burnt limestone from the pilot kiln awaiting further testwork to
determine available quicklime (CaO).

 

Mineral Resource Estimate

Earthlab Exploration and Mining Consulting ("Earthlab") has been engaged by
Firering to update the current Mineral Resource Estimate ("MRE") of 73.7Mt @
95.3% CaCO(3)  produced by Golder Associates in October 2017. This update,
incorporating data from the recently awarded 392.51 hectare exploration
licence adjacent to Limeco's current licence (see RNS dated 3 September 2024),
has the potential to increase the MRE by between 60Mt to 70Mt at similar
grades. Earthlab's updated JORC compliant report is expected in November 2024.

 

Long-term offtake agreements

Discussions are advancing with clients across various sectors for long-term
offtake agreements.  This includes negotiations with local and regional
industries currently reliant on imported quicklime, principally from South
Africa.  Limeco's robust production capacity, combined with its commitment to
quality control, is generating considerable market interest.

 

*** ENDS ***

 

For further information visit www.fireringplc.com or contact:

 

Firering Strategic Minerals

Yuval
Cohen
          E: info@firering-holdings.com

SPARK Advisory Partners Limited (Nominated Adviser)

Neil Baldwin / James Keeshan / Adam Dawes
                     T: +44 20 3368 3550

Optiva Securities Limited (Joint Broker)

Christian Dennis / Daniel
Ingram
T: +44 20 3137 1903

Shard Capital Partners LLP (Joint Broker)

Damon Heath / Erik
Woolgar
T: +44 20 7186 9950

St Brides Partners Limited (Financial PR)

Isabel de Salis / Susie Geliher / Seb Weller
       E: firering@stbridespartners.co.uk

 

Notes

Firering Strategic Minerals plc is an AIM listed resource company set to
commence commissioning a significant quicklime project in Zambia in Q4 2024 to
produce 600-800 tonnes of quicklime per day along with ancillary products.
With over US$100 million in historical investment, the project is
strategically positioned to support the expanding copper producers in the
Zambian Copper Belt, which are currently reliant on imported quicklime from
South Africa.  Firering currently holds an SPA over a 20.5% stake in Limeco
Resources Limited ("Limeco") with 10% already paid and an option to increase
this to 45%. Additionally, the Company is advancing the Atex Lithium-Tantalum
Project in northern Côte d'Ivoire, an exploration project rich in lithium and
tantalum-niobium, with drilling results indicating significant resource
potential in this established mining jurisdiction.

 

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