The Herald (Harare)

29 November 2012

Zimbabwe: Mwana Upbeat About Trojan

MWANA Africa Plc has announced further significant intersections of high grade nickel sulphides at Bindura Nickel Corporation subsidiary Trojan Mine after an underground drilling programme at the mine.

"This is the second tranche of drilling results from Trojan since the successful recapitalisation and restructuring of BNC was completed in September 2012," Mwana Africa said in a statement yesterday.

Key nickel intersections include 10,7m at 11,02 percent Ni from 368,7m (BH 35-0-70), 18,41m at 7,42 percent Ni from 284m (BH 35-0-82), 35,75m at 9,44 percent Ni from 177m (BH 35-0-83), 24m at

1,96 percent Ni from 182m (BH 35 - 0- 85), 18,4m at 1,22 percent Ni from 137,6m (BH 35-0-86).

The AIM listed mining company said since the announcement on October 8 2012, the firm has assayed the results from a further four underground diamond drill holes.

The total number of metres drilled thus far stand at 8 490 metres since the drilling programme commenced in April 2010.

Mwana Africa said the aim of the current drilling programme at Trojan is to confirm the depth of the extension of the massive sulphide zone within the main orebody. The drilling programme will delineate the main ore body and hanging wall ore body resources between 37 level and 45 level.

Further, the drilling exercise will also form the basis of an updated Joint Ore Resources Committee compliant resource and provide input for the extended life of mine plan for Trojan Mine.

Mwana Africa chief executive officer Mr Kalaa Mpinga said the results from the drilling programme further confirmed the London listed mining company's confidence in the viability of the nickel mine.

"The nickel grades at the Trojan Mine continue to confirm our confidence in the quality and future prospects for the mine which is currently in the process of being restarted.

"We are especially encouraged by the fact the grades of the recent drilling results are significantly better than historical grades.

"The target is to build production up to a rate of 7 000 tonnes per annum of nickel in concentrate with production of first concentrate expected by the second quarter of 2013."

Mwana Africa is a pan-African, multi-commodity resources firm with principal operations and exploration activities in gold, nickel, base metals, and diamonds in Zimbabwe, the DRC and South Africa. Mwana holds a 52,9 percent shareholding in integrated nickel miner and processor, BNC.

Mwana's Freda Rebecca gold mine, the London listed company's current cash cow, restarted operations in 2009 and achieved its target production rate of 50 000 ounces gold per annum in 2011.

In September 2012, Mwana's subsidiary, Bindura Nickel Corporation, carried out a restructuring and recapitalisation exercise, which has allowed the mining giant to restart Trojan Mine.

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