Initial Production Test at KRP (3163C)
April 30 2012 - 2:01AM
UK Regulatory
TIDMZOX
RNS Number : 3163C
ZincOx Resources PLC
30 April 2012
30 April 2012
ZincOx Resources plc
("ZincOx" or the "Company")
Initial Production Test at Korean Recycling Plant
Key Highlights
-- First production of zinc oxide concentrate
-- Process demonstrated
-- Zinc recovery in the range 87%-96%
-- Zinc oxide concentrate has zinc grade in the range 55%-63%
-- Iron metallisation in the range of 75%-88%
-- Plant optimization will improve results
-- Start Up Permit obtained
ZincOx Resources plc (AIM: ZOX) is pleased to announce the
initial operation of its wholly owned Korean Recycling Plant.
During the initial production test the plant ramped up to 50% of
capacity and produced zinc concentrate and Direct Reduced Iron
("DRI"). The operation of the final piece of equipment, the hot
briquetting machine, will occur during the next test run. While
operating, the plant was inspected by officials from the Korean
Ministry for the Environment and the Start Up Permit was issued
earlier today. Under Korean regulations, until this permit is
issued only limited quantities of Electric Arc Furnace Dust
("EAFD") are allowed to be delivered to the plant site and as a
consequence only a limited period of testing has been possible. The
issuance of the permit will enable the Company to start accepting
regular deliveries of EAFD to the site.
While the process has yet to be optimized for full scale
production, the initial results are very promising. The tests
demonstrated zinc recovery in the range 87%-96% and that good
quality zinc oxide concentrate could be recovered having a grade of
between 55% and 63% zinc at or above the target level (58%)
expected for the operation and with less than 0.2% iron indicating
a low carry over of untreated EAFD. The metallic iron content of
the DRI has typically been in the range of 75-88%, with our target
for the operation being 85%. Further improvements in zinc
concentrate quality and iron metallisation are expected as the
plant's operating conditions are optimized.
The plant operated in line with expectations with good briquette
strength and efficient evacuation of DRI from the furnace. Heat and
zinc product recovery and other aspects of the gas handling system
also worked as foreseen.
As foreseen, in the development plan, and due to the limited
availability of EAFD the Rotary Hearth Furnace and gas handling
system is being cooled, to allow a full inspection of the hearth,
for modifications to the control system and equipment
modifications, but production is expected to resume next week.
Commenting on the announcement, Andrew Woollett, ZincOx's
Chairman, said "We are delighted with the results from this first
operation which prove that the process works in line with our
expectations. We are looking forward to optimizing the operating
conditions and ramping up to full production over the next few
months and at the same time preparing to press ahead with our
expansion plans both in Korea and elsewhere".
For further information please contact:
ZincOx Resources plc Tel: +44 (0)1276 450
100
Andrew Woollett, Executive Chairman
Peel Hunt LLP (Nominated Adviser and Joint Tel: +44 (0)20 7418
Broker) 8900
Richard Kauffer
Daniel Harris
finnCap Limited (Joint Broker) Tel: +44 (0)20 7220
Matthew Robinson 0500
Joanna Weaving
Tavistock Communications Tel: +44 (0)20 7920
3150
Lydia Eades
Simon Hudson
Paul Youens
This information is provided by RNS
The company news service from the London Stock Exchange
END
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