Crew Development Completes Acquisition of Profitable High-Grade Copper/Cobalt Mine in Zambia.VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Sept. 30, 1997--Crew Development Corp. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , VSE See DOS/VSE. VSE - Virtual Storage Extended CRU.) -- Further to our News Release of September 18, 1997, the Company is pleased to announce the completion of the acquisition of the Chibuluma copper/cobalt project in Zambia by the Canadian/South African Consortium, in which Crew Development Corporation ("Crew") is the largest participant. The agreement between Zambia Consolidated Copper Mines Zambia Consolidated Copper Mines Ltd is the principal operator of copper mines in Zambia. The government of Zambia owns over 85% of the company's stock. The stock is listed on the Lusaka Stock Exchange, the London Stock Exchange and on Euronext in Paris. Ltd. ("ZCCM ZCCM Zambia Consolidated Copper Mines ") and the Consortium, in which Crew holds a 35 percent direct interest and a 48 percent direct/indirect interest, was signed on the scheduled date of September 30, 1997, in Lusaka, Zambia. The Company is also pleased to announce that the $10,000,000 private placement, arranged to fund its 35 percent direct participation in the project, is anticipated to close by October 10, 1997. All Consortium members have now secured their cash requirements to fund their respective interests. The Consortium was awarded the Chibuluma copper/cobalt project as part of the privatisation Noun 1. privatisation - changing something from state to private ownership or control denationalisation, denationalization, privatization social control - control exerted (actively or passively) by group action of ZCCM, and has an 85 percent interest, with 15 percent being retained by ZCCM. Metorex, the South African operating arm of Crew, will be the operator of the project. The Chibuluma project comprises Chibuluma West, an existing profitable (approximately US $5 million net profit per annum Per annum Yearly. ) operating mine, and a drill-proven ore reserve, Chibuluma South, located 12 kilometers distant. Consideration is a cash payment of US$17,500,000, an agreed portion of the net profits derived from cobalt Cobalt, town, Canada Cobalt (kō`bôlt), town (1991 pop. 1,470), E Ont., Canada, NE of Sudbury, near Lake Timiskaming. Once a center for cobalt and silver mining, the area is now economically depressed. production, and a financial commitment of approximately US$34 million over five years to develop the Chibuluma South orebody. Chibuluma West is situated 12 kilometres west of the main Copperbelt town of Kitwe and the Nkana smelting/refinery complex, and is currently the second most profitable mine in Zambia, producing approximately 9,500 tons of copper metal and 200 tons of cobalt per annum. It was developed in the 1950's and is one of the higher grade and lower cost producers within ZCCM, with proven mineable ore reserves of 1,500,000 tons at 3.63 percent copper and 0. 13 percent cobalt, capable of supporting operations In amphibious operations, those operations conducted by forces other than those conducted by the amphibious force. See also amphibious force; amphibious operation. for a further four years. Favourable geological potential to further extend the reserves exists. The mine operates at a scale of approximately 35,000 tons per month and the ore is treated at the Nkana concentrator. A final cathode copper is produced on a contract basis at that same facility. Chibuluma South is a drill proven mineable sulphide sulphide: see sulfide. ore reserve of 6 million tons grading 4.35 percent copper, with additional oxide ore reserves of some 2,400,000 tons, grading in excess of 3 percent copper. This ore body has been defined by extensive drilling, sampling and geotechnical programs, and is anticipated to be easily mineable and to present few difficulties with concentrating, smelting smelting, in metallurgy, any process of melting or fusion, especially to extract a metal from its ore. Smelting processes vary in detail depending on the nature of the ore and the metal involved, but they are typified in the use of the blast furnace. , refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar and marketing. Concentrating will be by a single floatation process and the concentrate grade has been estimated at 46 percent copper with insignificant cobalt. Development of the Chibuluma South mine will commence immediately upon completion of engineering studies, with the objective of reaching production in approximately three years. The mine will be engineered to operate at 40,000 tons of ore per month, producing some 16,500 tons of copper metal per annum. The Chibuluma South mine will be the first new mine in Zambia in 20 years and will be brought into production prior to the closure of Chibuluma West, thereby enabling continuity of employment and optimal use of the assets and infrastructure of Chibuluma West. The combined operating life of both mines could be approximately 18 years, during which time for a period of three years (4 through 6), both mines could be in production. -0- John M. Darch, President This News Release was prepared by the Board of Directors on behalf of Crew Development Corp. which is solely responsible for its contents. CONTACT: Crew Development Corporation John M. Darch, 604/683-7585 or 1-800-444-9284 604/662-3180 (FAX) Website: http://www.crewgroup.com E-mail: info@crewgroup.com |
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