Commences Production at Stellite Chrome Mine Following Completion of
Acquisition
Chromex Mining plc / Epic: CHX / Market: AIM / Sector: Mining &
Exploration
24 July 2008
Chromex Mining plc ('Chromex' or 'the Company')
Commences Production at Stellite Chrome Mine Following Completion of
Acquisition
Chromex Mining plc, the AIM listed dedicated chrome company, has
commenced production with its first blast on the MG1 chrome seam at
the Stellite opencast chrome mine ('Stellite') on the Western Limb of
the Bushveld Complex in South Africa. This follows the completion of
the acquisition of the remaining 49% of Ilitha Mining (Pty) Limited
('Ilitha'), which holds the mining right for Stellite. Chromex and
its BEE partner, Umnotho weSizwe, together now own 100% (74%/26%
respectively) of the project.
The 271 hectare Stellite project will be an opencast mine with a
target production of circa 30,000 tonnes of chrome per month for a
period in excess of 10 years using contract miners and initially
selling run-of-mine ore. The Company will now construct a processing
plant, targeted to be completed by the end of 2008, which is to be
partially funded by sales of chromite ore collected from production.
The directors believe that robust stainless steel demand underpins
the economics of the chrome export market and anticipate continued
buoyant demand for the ore. Initially a stock pile will be
established, with third party sales expected to commence at the end
of August 2008.
Chromex CEO Russell Lamming said, "Having now commenced production at
Stellite, we are entering into a cash generative stage through the
sale of chromite ore to third parties. The cash generated will
initially be used to help finance the development of the onsite
processing plant and then part fund the development of the flagship
Mecklenburg project."
Note: To see pictures of the first blasting at the Stellite
operation, please visit the following link.
http://www.chromexmining.co.uk/Doc/pdf/Images/Stellite%20-%201st%20Blasting%20Pictures.pdf
**ENDS**
For further information please visit www.chromexmining.co.uk
Russell Lamming Chromex Mining plc Tel: +44 (0) 7810
870 587
Brian Moritz Chromex Mining plc Tel: +44 (0) 7976
994300
Romil Patel / William Blue Oar Securities plc Tel: +44 (0) 20
Vandyk 7448 4400
Hugo de Salis/ Felicity St Brides Media & Tel: +44 (0) 20
Edwards Finance Ltd 7236 1177
Notes to Editors
Chromex Mining, quoted on AIM, is a dedicated chrome mining company
with two primary projects on the Bushveld complex, South Africa and
approximately 24Mt resources under its control. The Company aims to
commence production at these projects in the near term to take
advantage of the buoyant ferrochrome market.
Forward-Looking Statements
This regulatory news release contains certain forward looking
statements, which include assumptions with respect to future plans,
results and capital expenditures. The reader is cautioned that
assumptions used in the preparation of such information may prove to
be incorrect. All such forward looking statements involve substantial
known and unknown risks and uncertainties, certain of which are
beyond the Company's control. Please refer to the Company's Admission
Document available from the Company's web site for a list of risk
factors. The Company's actual results could differ materially from
those expressed in, or implied by, these forward-looking statements
and, accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do so, what benefits the Company will derive
there from. All subsequent forward-looking statements, whether
written or oral, attributable to the Company or persons acting on its
behalf are expressly qualified in their entirety by these cautionary
statements. Furthermore, the forward-looking statements contained in
this news release are made as at the date of this news release.
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