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African Copper Says Mowana Grades Encouraging

Mon. September 14, 2009; Posted: 11:48 AM
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Sep 14, 2009 (Mmegi/The Reporter/All Africa Global Media via COMTEX) -- AFNCF | Quote | Chart | News | PowerRating -- African Copper says grades produced following the restart of operations at the Mowana Mine near Dukwi have been above forecast, but that it is too early to identify any clear trend in grades.

"The results achieved over this short period of time are encouraging," said Chief Executive Chris Fredericks.

African Copper, which put the mine on care and maintenance in January pending completion of financing talks, had said it planned to resume production by the end of August.

The company said in a statement that following its presentation given at the AGM on the 30th July 2009 and the announcement of 14th August 2009, it was delighted that the anticipated operational start-up has now been successfully achieved.

The statement said the operational team on site have mobilised a new mining contractor and re-commissioned the concentrator with the assistance of an experienced team of specialist metallurgical and engineering personnel from ZCI.

"The teething problems encountered during the re-start of the plant, coming out of a period of extended care-and-maintenance, were quickly identified and remedied during the period."

Management of the company said they now believe that the operation is well positioned to advance to steady state nameplate production through the coming quarters.

The company, which was acquired by ZCI after being hit hard by the global recession, said the operational key indicators derived from start-up have been encouraging.

Copper prices jumped to their highest level in more than a week on Tuesday, ending strong after expectations of improving economic and demand growth in coming months buoyed the metal, but analysts said their future direction would depend on Chinese buying.

Copper for delivery in three months MCU3 on the London Metal Exchange closed at $6,480 a tonne, up from $6,324 at the close of business on Monday.

In New York, copper for December delivery HGZ9 finished with hefty a gain of 8.95 cents, or 3.12 percent,

"African Copper now finds itself well placed to take advantage of a fundamentally improved metals market environment," Fredericks said.

The CEO said the operational team is fully focused and committed to meeting production objectives and to deliver the optimal mining strategy.

"The results achieved over this short period of time are encouraging and continue to support the ultimate goal of realising the full potential of the company's extensive mineral assets."

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