News April 22, 2015

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April 22, 2015

 

Bisha Mining Provides an Update on Zinc Expansion Project

 

Bisha Mining Share Company (BMSC) is pleased to provide an update on the Bisha zinc expansion project which will average over 100,000 tonnes (225 million pounds) of zinc and 24,000 tonnes (55 million pounds) of copper per year for 10 years after start up in mid-2016. 

Zinc Expansion Project Highlights

  • Overall nearly 60% complete with zinc plant commissioning on-schedule for mid-2016
  • Foundations and civil work complete with steel erection underway
  • Flotation cells transported to site, regrind mills soon in country
  • Forecast to complete: US$92 million with US$63 million committed, US$31 million spent
  • No lost time injury or environmental incidents since project commenced
  • Uncommitted off-take is well timed for anticipated supply deficit in the zinc market

 

The zinc expansion project adds zinc flotation capacity to the Bisha processing plant.  This zinc flotation plant floats zinc concentrate after existing copper flotation, enabling the production of two products: zinc and copper concentrate as required to process primary ores.

 The project remains on schedule with engineering design 89% complete, procurement 60% complete, site construction 21% complete for an overall project progress of nearly 60% as of March 31, 2015. The major infrastructure and equipment engineering has been complete for some time with only minor tie-ins and minor modifications outstanding. Procurement of mechanical, piping, electrical and automation packages are mostly finished. All long lead orders were placed in 2014. The most critical civils component of construction is complete and steel erection by onsite specialist contractors has commenced. 

 The overall forecast to complete the project is US$92 million inclusive of US$6 million contingency. Combined concentrate production will average approximately 300,000 tonnes per year, not dissimilar to 2014 production rates.  No additional capital is therefore required for the land transport or port infrastructure to export the copper and zinc concentrates produced from the zinc expansion starting in mid-2016. 

 An updated picture gallery remains available at http://www.bishamining.com/gallery.

 Cliff Davis, BMSC Chairman, commented “We take a diligent approach to capital project management to complete projects on time and on budget.  Our decision at the start of the zinc project to strengthen the owner’s construction team with a more integrated EPCM approach has realised additional savings.  We are confident that the robust flotation process plant will facilitate potential future throughput expansions and extended mine life.  We have also been careful not to commit any of our zinc off-take so as to take advantage of the expected tightening of worldwide zinc supply”.

 Forward Looking Statements

The above contains forward-looking statements the Company’s mine operations and plant operations.  Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimated,” “potential,” “possible” and similar expressions, or statements that events, conditions or results “will,” “may,” “could” or “should” occur or be achieved.  Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors.  The Company’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and the Company assumes no obligation to update such forward-looking statements in the future.

  

Bisha Mining Share Company

“Cliff T. Davis”

Cliff T. Davis
Chairman