REG - Kropz PLC - Elandsfontein update

KropzAnnouncement

24/10/2022 07:01

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RNS Number : 7719D  Kropz PLC  24 October 2022

The information contained within this announcement is deemed to constitute
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Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part
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inside information is now considered to be in the public domain.

24 October 2022

Kropz Plc

("Kropz" or the "Company")

Elandsfontein update

Kropz Plc (AIM: KRPZ), an emerging African phosphate producer and developer,
provides an update on the delays in the ramp-up of operations at Kropz
Elandsfontein (Pty) Ltd ("Elandsfontein"), as announced on 9 August 2022,
which reported delays to ore variability in the current mining area.

Mining Variability

Previous geological modelling identified 'phosphorite' as a compact material
present in the otherwise sandy resource. The 2018 resource model, as described
in the 2018 Competent Person's Report, estimated that the relative proportion
of phosphorite to semi-consolidated material was <8%.

As announced on 9 August 2022, higher than anticipated volumes of compact
material were uncovered in Pit 1. The previous geological modelling had
described the hard bank material as lenses, however, excavation in the pit in
June and July 2022 revealed undulating slabs, rather than discontinuous
lenses. The compact material was subsequently redefined as 'hard bank'.

In September 2022, following the re-logging of historical cores,
Elandsfontein's independent geological consultants remodelled the resource
using an implicit modelling function. They also included the drilling results
of closely spaced infill drilling which took place in late 2021 and the most
recent results from the current 2022 infill drilling programme. Although
higher volumes of the hard bank were present, the initial updated model
indicates that there is sufficient sandy ore available within Pits 1 and 2 to
support mining and processing activities until at least the end of 2023.
Further drilling work, to be completed, is expected to support the longer-term
mining plan. The updated modelling also indicates that Pits 1 and 2 contain
approximately 12% hard bank. While the initial slab of hard bank, uncovered
in July 2022, was contrary to expectations based on previous work, the revised
volume of hard bank does not appear to differ significantly from the previous
modelling.

The geological interpretation of the occurrence of the hard bank is still
work-in-progress and will be supplemented by additional drilling. Mineralogy
can confirm whether the hard bank is a post-formation event, which would
assist in further refinement of the model. Geophysical methods are being
investigated as an alternative to drilling to further improve the
interpretation of the extent of the hard bank material. Alternative mining
methods are also being investigated.

Independent geological consultants have been commissioned to provide an
updated Mineral Resource Estimate, to confirm the confidence levels in terms
of grade, contact elevation, physical properties and continuity. This is
expected to be finalised in late 2022 pending the outcomes of the ongoing 2022
infill drilling programme.

Update on ramp-up operations at Elandsfontein

Elandsfontein continues to make progress during its ramp-up phase and has
moved to a revised shift cycle, which has shown improved plant performance.
Although optimisation at the plant is still ongoing, there have been
meaningful improvements in the plant running times, leading to improved plant
stability over the past eight weeks which has contributed to increased
concentrate production. Elandsfontein is building up stock for its first bulk
sale, expected in late 2022. At the date of this announcement, 18,500 tonnes
of phosphate rock concentrate were in stock at the Saldanha Bay storage
facility.

For further information visit www.kropz.com (http://www.kropz.com/)  or
contact:

 

 Kropz Plc                         Via Tavistock
 Mark Summers (CEO)                +44 (0) 207 920 3150

 Grant Thornton UK LLP             Nominated Adviser
 Samantha Harrison                 +44 (0) 20 7383 5100

 Harrison Clarke

 George Grainger

 Ciara Donnelly

 Hannam & Partners                 Broker
 Andrew Chubb                      +44 (0) 20 7907 8500

 Ernest Bell

 Tavistock                         Financial PR & IR (UK)
 Nick Elwes                        +44 (0) 207 920 3150

 Jos Simson                        kropz@tavistock.co.uk

 Emily Moss

 R&A Strategic Communications      PR (South Africa)
 Charmane Russell                  +27 (0) 11 880 3924

                                   charmane@rasc.co.za

About Kropz Plc

Kropz is an emerging African producer and developer of plant nutrient feed
minerals with phosphate projects in South Africa and in the Republic of Congo.
The vision of the Group is to become a leading independent phosphate rock
producer and to develop into an integrated, mine-to-market plant nutrient
company focusing on sub-Saharan Africa.

-ENDS-

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