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Pallinghurst Resources – Construction of Tshipi Borwa Mine
HAMILTON, Bermuda – 09 February, 2011 – The Directors of Pallinghurst Resources Limited (the “Company”; Ticker: PALLRES.BH) have released the following market announcement.
Shareholders of Pallinghurst are advised that mine development at Tshipi Borwa is expected to commence in the first half of 2011 at an estimated cost of US$200 million. Production is anticipated to begin within 18 months and will at full capacity produce approximately 2.4 million tonnes per annum of direct shippable manganese ore.
Located in the Kalahari Manganese Field near Hotazel in the Northern Cape; Tshipi Borwa has a mineral resource of 163 million tonnes of manganese, at a grade of 37%. The geology is similar to the adjacent Mamatwan which has been in production for 46 years.
It is expected that 350 new jobs will be created by the new mine directly and as many as 2,000 additional jobs through the provision of goods and services.
The Company holds its interest in Tshipi Borwa through its 16.5%* effective interest in ASX listed Jupiter Mines Limited (“Jupiter”), which in turn owns 49.9% of Tshipi Borwa. Broad based BEE consortium Ntsimbintle Mining (“Ntsimbintle”) owns the remaining 50.1% of Tshipi Borwa. Former Transnet CEO Saki Macozoma is the Chairman of Ntsimbintle.
Pallinghurst Chairman Brian Gilbertson said: “Tshipi Borwa is set to become one of the world’s major suppliers of manganese - a critical raw material for steel production. Its competitive cost profile and more than 50 years of life, makes it a very attractive project for shareholders and the community of the Northern Cape.”
Pallinghurst CEO Arne H. Frandsen commented: “With our superb location in the world’s most desirable manganese province we now enter the final stages of construction to realise Tshipi Borwa’s exciting growth potential. We have invested in this project from its outset. It demonstrates Pallinghurst’s ability to drive projects up the value curve from greenfields to production.”
* Following completion of the AUD150 million capital raising as announced by Jupiter on 31 January 2011.
BSX Listing Sponsor:
Alex Conyers, First Bermuda Group (441) 295-1330