Business
Favourable Walviskop Mining Permit Decision
Favourable Walviskop Mining Permit Decision.
About this update from Kazera Global Plc
[{"type":"text","content":"\n \n \n \n Kazera Global plc\n \n \n \n \n (\"Kazera\" or the \"Company\")\n \n \n \n \n Favourable Walviskop Mining Permit Decision\n \n \n \n Kazera Global plc, the AIM quoted investment company, is pleased to advise that the Department of Mining and Mineral Resources has dismissed a third party's appeal against the grant of a mining permit to the Company's 60% owned subsidiary Whale Head Minerals (Pty)Ltd (\"WHM\"). WHM now expects to shortly receive final documentation allowing it to commence production operations of heavy mineral sands (\"HMS\") at the Walviskop mine in South Africa.\n \n \n Ore production from the JORC compliant resource at the Walviskop mine is expected to generate positive cashflow from operations within six months of receipt of the Mining Permit being granted over a 5Ha beach sand deposit at Walviskop. Walviskop sits within the diamond mining operations of the Company's other South African subsidiary, Deep Blue Minerals.\n \n \n \n Highlights\n \n \n \n \n ·\n The Company expects to produce circa 6,000 tons of HMS per month, achieving an estimated gross profit of in excess of US$ 300,000 per month (based on current prices), within six months of the Mining Permit being granted.\n \n \n ·\n The Mining Permit gives WHM the right to mine a 5Ha beach sand deposit at Walviskop with:\n \n \n \n \n o \n JORC Indicated Mineral Resource of 3.11 million tons of Valuable Heavy Minerals at a grade of 61.2%\n \n \n o \n Predominant Valuable Heavy Minerals are Garnet (30.29% Run of Mine (\"ROM\")) and Ilmenite (27.54% ROM).\n \n \n o \n Also present are Zircon and Rutile which have not been included in the modelling.\n \n \n o \n Independent NPV of approximately £150 million (applying a 20% discount rate) based on current FX rates.\n \n \n \n \n ·\n Potential partners have already been identified to build the Walviskop processing plant.\n \n \n ·\n WHM has applied for a prospecting right over an adjacent beach which appears to share similar characteristics to Walviskop and which is approximately 34 times larger.\n \n \n ·\n Start up costs of the Walviskop mine are anticipated to be covered by cash flows from Kazera's Alexander Bay Diamond Mine in South Africa and Tantalum Valley Mine in Namibia.\n \n \n \n \n \n \n \n Background on HMS Deposits\n \n \n \n The opportunities r...