ZZL Zeehan Zinc

RNS Number:5105W
Zeehan Zinc Limited
14 May 2007

news release





14 May 2007



                              Zeehan Zinc Limited


                               Operations Update


Zeehan Zinc Limited ("ZZL" or the "Company") (ZZL.L) is pleased to give an
update to shareholders on the Company's operations in Western Tasmania,
Australia.


As stated at the time of the Company's interim report in March 2007, ZZL's main
objectives are to commence mining and production of pre-concentrate ore as soon
as possible, to build and commission the Flotation Plant by the end of 2007 and
to engage in an exploration drilling programme to prove up additional resources.



Mining


The commissioning of the crushing circuit of the Gravity Plant will commence
before the end of May and the entire plant is expected to be fully operational
by the end of June. Additionally, the tailings dam and the associated water
management systems at the Comstock Site are expected to be fully operational by
the end of June 2007. As a result of this progress, the Company is scheduled to
commence mining during June 2007, with the production of pre-concentrate
expected to follow in July 2007.


Options for the processing of ore and pre-concentrates, in both the short and
longer term, are being examined. Discussions are being held with a number of
potential customers and ore samples have already been sent to certain interested
parties. Contracts in respect of the transport of ore are likely to be finalised
before the completion of the plant refurbishment.


The major components of the Flotation Plant are in the final stages of
refurbishment in Canada and after inspection by ZZL personnel, will be shipped
to Tasmania. The equipment is expected to arrive at the end of June, by which
time the site for the plant will be levelled and ready for construction to
commence.


In accordance with the terms of Mining Leases 123M/1947, 19M/1995 and 9M/2002
held by the Company (covering the Comstock Site), a A$2.5 million Environmental
Bond has been lodged with Mineral Resources Tasmania ("MRT"). As a result the
Mining Leases have been renewed until 31 March 2009. The term of these Mining
Leases may be further extended beyond this period subject to continued
demonstration of additional mineable resources.



Exploration


The Company has embarked on and completed the first phase of its 2007
exploration drilling programme, on budget, at the end of April. The main
objective of this programme is to increase its resource definition and
classifications. The drill cores are currently being assayed and an independent
report will be produced once all results have been fully analysed.


Additionally, the Company has commissioned Hellman & Schofield Pty. Ltd. to
report on the update of the resources within Mining Lease 2M/2005 (the Oceana
Deposit) and the results are expected to be announced shortly.


In respect of Exploration Licence EL 20/2002, which covers an area of 71 sq
kilometres, and includes the Mariposa and Oceana Sites, Terex Seismic has
recently completed its survey. The Company expects to have the seismic fully
processed by its consultants by the end of June and will use the information to
select a number of drill sites to establish the degree of mineralisation with
this tenement.


Ends.


Contacts:

Zeehan Zinc                                     c/o Bankside Consultants
Michael Roberts, Chairman                       Tel: 0207 367 8888
John Pollard, Chief Executive Officer

Libertas Capital                                Tel: 0207 569 9650
Jakob Kinde, Aamir Quraishi

Bankside Consultants                            Tel: 0207 367 8888
Simon Rothschild/Oliver Winters


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

MSCDBGDUBGBGGRX

Zeehan Zinc (LSE:ZZL)
Gráfico Histórico do Ativo
De Dez 2024 até Jan 2025

Zeehan Zinc (LSE:ZZL)
Gráfico Histórico do Ativo
De Jan 2024 até Jan 2025