Weatherly Int'l updates on Tschudi and Otjihase

Weatherly International said further operational optimisation at Tschudi, plus project development at Otjihase and Matchless offer significant potential value for the company.

"The mineral resources at Otjihase and Matchless plus the installed processing plant capacity present a valuable opportunity for the Company to resume production at higher production rates and lower unit costs than were achieved during the period from 2011 to 2015," said CEO Craig Thomas.

"Such an opportunity however will be critically dependent on the development of underground mining operator skills.

"The Company has identified a low-risk opportunity to start a skills development programme in a manner which could be incrementally cash-generative at current spot prices within six months of commencement.

"We continue to prudently advance project work in both areas and look forward to updating the market in due course."

HIGHLIGHTS:

- Tschudi nameplate production rates of 1,417 tonnes per month (tpm) have been re-attained during October, two months earlier than forecast.

- As part of the potential Tschudi expansion project to 20 thousand tonnes per annum (20ktpa), the Tschudi Solvent Extraction (SX) and Electro-Winning (EW) plants have already demonstrated the capacity to operate at 20ktpa rates with significantly reduced capital expenditure requirements.

- At Otjihase and Matchless, safe and productive underground mining skills development is critical to unlocking the opportunity to resume production at sustainable unit costs in future.

- The Company has identified a low-risk and potentially incrementally cash-generative opportunity to commence with its skills development programme at Otjihase. The Company plans to study the opportunity further before taking a decision to proceed.

- The Company intends investigating the potential for such skills development to support a strategic goal of achieving 10-12ktpa of contained copper in concentrate from the underground mines at C1 costs below US$2/lb.

- The Company has entered into a Cooperation Agreement with the holder of the Ongombo prospecting license, a prospective copper deposit in close vicinity to the Otjihase mine and concentrator.

At 9:14am: (LON:WTI) Weatherly International PLC share price was +0.23p at 1.08p