TIDMKZG

RNS Number : 8297U

Kazera Global PLC

28 November 2023

28 November 2023

Kazera Global plc

("Kazera" or "the Company")

Diamond Project Update

Purchase of Pulsating Diamond Jig

Kazera Global plc (AIM: KZG), the AIM-quoted investment company, is pleased to provide an update on operations at its Deep Blue Minerals ("Deep Blue") diamond project in Alexander Bay, South Africa.

OVERVIEW

   --    Pulsating diamond jig ordered 
   --    20 tons per hour processing capacity 
   --    Expected to be in operation in early 2024 
   --    Will overcome diamond gravel processing issues at Alexkor's Muisvlak processing plant 
   --    Capable of being trailer mounted to increase operational flexibility 

Dennis Edmonds, CEO of Kazera Global commented: "Having recently inspected a pulsating diamond jig in operation, we have placed an order for a unit which will be deployed at Deep Blue Minerals' diamond mining operation in Alexander Bay, South Africa.

"Historically, Deep Blue has worked with Alexkor to get its Muisvlak diamond gravel processing plant operating correctly so that it and other contractors in the area can process their diamond gravel. However, despite best efforts, it has become increasingly apparent that achieving this consistently is not achievable in the short term. Deep Blue has therefore received approval from Alexkor to utilise a pulsating jig to process its diamond gravel and then deliver very high concentrate gravels to Alexkor for final sorting and sale. This means that the volumes to be transported will be considerably reduced (so reducing costs) and also means that security of our product will be improved.

"Pulsating jigs are widely used for diamond recovery and, with a processing capacity of 20 tons per hour, we believe this purchase provides a cost effective way to swiftly and dramatically improve operations at Deep Blue. "

DETAILS

The Company remains focused on advancing production at its Deep Blue Minerals Project, in which it holds a 64% interest.

The operation is located within the 80km long Alexkor diamond fields, which lies between two historic De Beers operations. The area has been mined for diamonds since 1928 and more than ten million carats of gem quality diamonds have been recovered over the last ninety years or so. It is estimated that there are at least another two million carats left in the tenement.

Mining at Deep Blue is undertaken under contract from Alexkor RMC JV ("Alexkor"), a government owned entity, which has the rights to all the diamonds in the area.

Part of the agreement with Alexkor requires that it processes the diamond gravels and undertakes all diamond sales, but with Alexkor's Muisvlak processing plant operating sporadically, the ability to process diamond gravel and, accordingly, produce diamonds for sale has been greatly constrained.

In the past Deep Blue agreed to take on the task of getting the Muisvlak plant running as, without it, neither Deep Blue nor the majority of the other contractors in the area have a way of processing their diamonds. Deep Blue was successful in doing this but was forced to withdraw its assistance due to political and economic factors .

The use of the pulsating diamond jig, which has been approved by Alexkor, is an attempt to unblock the diamond mining process for Deep Blue by bypassing the Muisvlak plant completely and allowing Deep Blue to deliver only very high concentrate diamond gravels to Alexkor for final sorting.

The Company anticipates that this equipment will be in operation early in 2024 and will allow a quick ramp up in production and positive cash flow.

**ENDS**

 
Kazera Global plc                         kazera@stbridespartners.co.uk 
 Dennis Edmonds, CEO 
Cavendish Capital Markets Ltd (Nominated       Tel: +44 (0)207 220 0500 
 Adviser and Broker) 
 Derrick Lee / Neil McDonald / Fergus 
 Sullivan (Corporate Finance) 
                                          ----------------------------- 
St Brides Partners (Financial PR)         kazera@stbridespartners.co.uk 
 Paul Dulieu / Isabel de Salis 
                                          ----------------------------- 
 

About Kazera Global plc

Kazera is a global investment company focused on leveraging the skills and expertise of its Board of Directors to develop early-stage mineral exploration & development assets towards meaningful cashflow and production.

Its three principal investments are as follows:

(1) Alluvial diamond mining through Deep Blue Minerals (Pty) Ltd, Alexander Bay, South Africa. Kazera currently has a 90% direct interest in Deep Blue Minerals, of which 64% is held beneficially by Kazera and 26% is held on behalf of Black Economic Empowerment partners.

(2) Heavy Mineral Sands mining (including ilmenite, monazite, rutile, and zircon) through Whale Head Minerals (Pty) Ltd, Alexander Bay, South Africa. Kazera currently has a 60% direct beneficial interest in Whale Head Minerals.

(3) Tantalite mining in South-East Namibia (divestment in progress)

As announced on 20 December 2022, Kazera has agreed to dispose of African Tantalum (Pty) Ltd ("Aftan") for a cash consideration of US$13 million plus a debenture payment of 2.5% of the gross sales of produced lithium and tantalum for life-of-mine. Completion of the sale is subject to receipt of full consideration proceeds. Aftan has been deconsolidated from the Company's financial statements with effect from 4 January 2023 because in accordance with the terms of the sale agreement, it has relinquished control of the Aftan in favour of the purchaser, Hebei Xinjian Construction Close Corp with effect from that date. Kazera retains the right to cancel the transaction and retain all amounts paid to date in the event of default by Hebei Xinjian.

The Company will consider additional investment opportunities as appropriate, having regard to the Group's future cash flow requirements.

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END

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November 28, 2023 02:00 ET (07:00 GMT)

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