TORONTO, ONTARIO--(Marketwire - Dec. 9, 2011) - This document corrects and replaces the press release that was sent on October 27th, 2011 at 11:35 am ET. The corrected version follows.
Red Crescent Resources Limited (TSX:RCB.TO - News), a base metals focused mineral exploration and development company with operations in Turkey, announced today that it has successfully wet commissioned two 20 tonne per hour gravity concentrator plants at the manufacturer's facilities in South Africa. When deployed at site in Turkey, these units have a designed capability to collectively deliver up to 85 000 tons per annum of saleable concentrate grading greater than 25% Zn contained from feed grades greater than 8.8% to 16% Zn contained, depending on the heavy gangue content.
As previously announced, Red Crescent completed its initial metallurgical test work program for determining the viability of gravity concentrating Hakkari type ores from its core Hakkari Zinc Project (HZP) in Turkey in December, 2010. HZP is a high grade carbonate MVT (Mississippi Valley Type) style Zinc/Lead project, which hosts potential for the development of compliant mineral and metal resources.
Subsequent further testwork has been completed on both Hakkari type ores and also Tufanbeyli type of ores from Red Crescent's other Zinc/Lead project in Adana, Turkey. Also informing the testwork has been the important completion of an independent detailed mineralogical study of the above mentioned ores by recognized global experts in base metal oxide type mineralisation, namely Professors Herrington and Boni, from the London University Natural History Museum Mineralogy Laboratory and University of Naples, respectively.
"The successful wet commissioning of production-scale machines utilizing bulk sampled mineralised materials from Hakkari is most significant as they have proven that the laboratory design for a sustainable upgrade is possible, dependent on the head feed grade X% Zn being 8.8 greater than =X less than =25 and utilizing a constant configuration composite gravity concentrator," remarked Process Engineer Dr. Can Ozer of AME Consulting A.S. "Additionally, and most notably, the upgrade ratio favours the intermediate grade ores, i.e. greater than 8.8% and the commissioning run results have confirmed that the machines can produce concentrate products having Zinc content of targeted 25% and above."
The successful tactical execution of this strategy during the first quarter of 2012 is expected to generate positive cash flow from Zinc/Lead concentrate sales to the international market completing the payback of the initial investment totaling US$2.4 million for the two concentrator plants. This cash flow is also intended to contribute to Red Crescent's overall projects capital requirements.
"We are delighted that these units have met and exceeded design specification criteria set for early production of high value Zinc metal concentrate products to add to the DSO sales of our higher grade (+25% Zn) mineralised material extracted on Red Crescent properties," said Mr. Alan M. Clegg, Chairman and CEO of Red Crescent. "This tactical action is in line with the company's earlier declaration of its updated business strategy of executing work on its Projects from multiple points along the value chain in order to generate early revenues and reduce requirements to raise capital development funding from issue of new equity."
A further major benefit resultant to shareholders from this action is close-out on the second key milestone within its JV DA (definitive agreement) with its partner in SE Turkey, namely to have installed the capability to beneficiate 60 000 tonne per annum of run of mine mineralised material. The first key milestone within the JV DA of matching HZP historical costs declared by the JV partner was already met through the spending of US$4.5m on exploration and project development in Hakkari within 2 years of executing the JV DA in March 2010.
Dr. Can Ozer and Mr. Alan M. Clegg Pr.Eng FSAIMM a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical information contained in this news release.
The statements made in this press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
About Red Crescent Resources
Red Crescent Resources (TSX:RCB.TO - News) is a Turkey-based junior mining company targeting historically inaccessible areas where no modern application of exploration techniques or technology has been applied, with high potential for discovery of significant base metal deposits. For more information, please visit: www.redcrescentresources.com.
- Red Crescent