ZOX Zincox Res.

TIDMZOX

ZincOx Resources PLC

08 November 2011

8 November 2011

ZincOx Resources plc

Commissioning Commences at the Korean Recycling Plant

ZincOx Resources plc ("ZincOx") is pleased to announce the start of commissioning at its wholly owned Korean Recycling Plant in South Korea.

Commissioning activity initially involves the testing of the mechanical equipment and is an essential activity ahead of production. It has commenced in line with the previously announced schedule in which the first phase of production commences in Q1 2012, with a ramp up taking place over the following six months. The project, therefore, remains on schedule.

The budget for the development of KRP1 is US$110 million. Of this amount, US$8 million is for working capital and other capitalised pre-operating expenses, so that the actual construction cost is US$102 million. To date, about 94% of the construction cost has been spent or is contractually committed. The balance of the construction cost has been reviewed in detail and, provided the exchange rates between the Korean Won, the US dollar and sterling remains broadly as they are today, the project is expected to be completed slightly under budget.

With the exception of the hot briquetting section, all major equipment has been installed and buildings are nearing completion. Furthermore, the preparations for production are also on track, the senior management positions have all been filled and roughly half of the operators recruited; the training for our operators will commence shortly. Senior managers and other administrative staff have moved into the production offices which are now fully operational.

Commenting on the announcement, Andrew Woollett, the Chairman of ZincOx, said "I am very encouraged to report on the start of the commissioning activities which represent the final chapter of our development activities for first production phase, and we look forward to starting production on schedule in the first quarter of next year. I encourage our shareholders to view the photo galleries on our website, which clearly demonstrate the huge progress being made."

 
 ZincOx Resources 
  Andrew Woollett, Executive Chairman           +44 (0) 1276 450100 
---------------------------------------  --------------------------- 
 
 Peel Hunt LLP (Nominated Adviser and 
  Joint Broker)                                 +44 (0) 20 7634 4700 
  Richard Kauffer/Daniel Harris 
  finnCap Limited (Joint Broker) 
  Matthew Robinson/Joanna Weaving               +44 (0) 20 7220 0500 
---------------------------------------  --------------------------- 
 Tavistock Communications 
  Paul Youens/Simon Hudson/Lydia Eades          +44 (0) 20 7920 3150 
---------------------------------------  --------------------------- 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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