REG - Kazera Global PLC - Diamond Project Update

Kazera GlobalAnnouncement

28/11/2023 07:00

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RNS Number : 8297U  Kazera Global PLC  28 November 2023

28 November 2023

 

 

Kazera Global plc

("Kazera" or "the Company")

 

Diamond Project Update

Purchase of Pulsating Diamond Jig

 

Kazera Global plc (AIM: KZG), the AIM-quoted investment company, is pleased to
provide an update on operations at its Deep Blue Minerals ("Deep Blue")
diamond project in Alexander Bay, South Africa.

OVERVIEW

·    Pulsating diamond jig ordered

·    20 tons per hour processing capacity

·    Expected to be in operation in early 2024

·    Will overcome diamond gravel processing issues at Alexkor's Muisvlak
processing plant

·    Capable of being trailer mounted to increase operational flexibility

Dennis Edmonds, CEO of Kazera Global commented: "Having recently inspected a
pulsating diamond jig in operation, we have placed an order for a unit which
will be deployed at Deep Blue Minerals' diamond mining operation in Alexander
Bay, South Africa.

"Historically, Deep Blue has worked with Alexkor to get its Muisvlak diamond
gravel processing plant operating correctly so that it and other contractors
in the area can process their diamond gravel. However, despite best efforts,
it has become increasingly apparent that achieving this consistently is not
achievable in the short term. Deep Blue has therefore received approval from
Alexkor to utilise a pulsating jig to process its diamond gravel and then
deliver very high concentrate gravels to Alexkor for final sorting and sale.
This means that the volumes to be transported will be considerably reduced (so
reducing costs) and also means that security of our product will be improved.

"Pulsating jigs are widely used for diamond recovery and, with a processing
capacity of 20 tons per hour, we believe this purchase provides a cost
effective way to swiftly and dramatically improve operations at Deep Blue. "

DETAILS

The Company remains focused on advancing production at its Deep Blue Minerals
Project, in which it holds a 64% interest.

The operation is located within the 80km long Alexkor diamond fields, which
lies between two historic De Beers operations. The area has been mined for
diamonds since 1928 and more than ten million carats of gem quality diamonds
have been recovered over the last ninety years or so. It is estimated that
there are at least another two million carats left in the tenement.

Mining at Deep Blue is undertaken under contract from Alexkor RMC JV
("Alexkor"), a government owned entity, which has the rights to all the
diamonds in the area.

Part of the agreement with Alexkor requires that it processes the diamond
gravels and undertakes all diamond sales, but with Alexkor's Muisvlak
processing plant operating sporadically, the ability to process diamond gravel
and, accordingly, produce diamonds for sale has been greatly constrained.

In the past Deep Blue agreed to take on the task of getting the Muisvlak plant
running as, without it, neither Deep Blue nor the majority of the other
contractors in the area have a way of processing their diamonds. Deep Blue was
successful in doing this but was forced to withdraw its assistance due to
political and economic factors.

The use of the pulsating diamond jig, which has been approved by Alexkor, is
an attempt to unblock the diamond mining process for Deep Blue by bypassing
the Muisvlak plant completely and allowing Deep Blue to deliver only very high
concentrate diamond gravels to Alexkor for final sorting.

The Company anticipates that this equipment will be in operation early in 2024
and will allow a quick ramp up in production and positive cash flow.

**ENDS**

 

 Kazera Global plc                                                           kazera@stbridespartners.co.uk (mailto:kazera@stbridespartners.co.uk)   

 Dennis Edmonds, CEO                                                           

   
 Cavendish Capital Markets Ltd (Nominated Adviser and Broker)                Tel: +44 (0)207 220 0500  

 Derrick Lee / Neil McDonald / Fergus Sullivan (Corporate Finance)  
 St Brides Partners (Financial PR)                                           kazera@stbridespartners.co.uk (mailto:kazera@stbridespartners.co.uk)   

 Paul Dulieu / Isabel de Salis                                                 

 

About Kazera Global plc

Kazera is a global investment company focused on leveraging the skills and
expertise of its Board of Directors to develop early-stage mineral exploration
& development assets towards meaningful cashflow and production.

Its three principal investments are as follows:

(1)  Alluvial diamond mining through Deep Blue Minerals (Pty) Ltd, Alexander
Bay, South Africa. Kazera currently has a 90% direct interest in Deep Blue
Minerals, of which 64% is held beneficially by Kazera and 26% is held on
behalf of Black Economic Empowerment partners.

(2)  Heavy Mineral Sands mining (including ilmenite, monazite, rutile, and
zircon)  through Whale Head Minerals (Pty) Ltd, Alexander Bay, South Africa.
Kazera currently has a 60% direct beneficial interest in Whale Head Minerals.

(3)  Tantalite mining in South-East Namibia (divestment in progress)

As announced on 20 December 2022, Kazera has agreed to dispose of African
Tantalum (Pty) Ltd ("Aftan") for a  cash consideration of US$13 million plus
a debenture payment of 2.5% of the gross sales of produced lithium and
tantalum for life-of-mine. Completion of the sale is subject to receipt of
full consideration proceeds. Aftan has been deconsolidated from the Company's
financial statements with effect from 4 January 2023 because in accordance
with the terms of the sale agreement, it has relinquished control of the Aftan
in favour of the purchaser, Hebei Xinjian Construction Close Corp with effect
from that date. Kazera retains the right to cancel the transaction and retain
all amounts paid to date in the event of default by Hebei Xinjian.

The Company will consider additional investment opportunities as appropriate,
having regard to the Group's future cash flow requirements.

 

 

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