Kalumines reports excellent drill results and achieves planned mining levels at Lupoto



    
    -  Accelerated drilling program in the DRC providing encouraging
       results. Selected results:
       -  LPRD004 - 40 drill metres at 7.08%Cu
       -  LPRD034 - 26 drill metres at 5.17%Cu
       -  LPDR028 - 16 drill metres at 3.33%Cu
       -  LPOR005 - 25 drill metres at 5.60%Cu
    -  Initial mining levels at the Lupoto Copper Project in the DRC
       achieved; furnace commissioning commenced
    -  The Konkola North Copper Project's mining technical feasibility study
       completed with increased exploration drilling within Area 'A'
       Extension now being undertaken on the property in Zambia
    -  The Otjikoto Gold Project in Namibia announces a mineral resource
       upgrade:
       -  460,000oz reported in the indicated category; and
       -  An additional 1.32Moz in the inferred category
    -  Additional bridging finance secured with a guarantee from major
       shareholder, ARM
    

    TORONTO, Nov. 14 /CNW/ - In releasing results for the three months ended
September 30, 2007, TEAL Exploration & Mining Incorporated (TSX-"TL")
(JSE-"TEL") ("TEAL" or the "Company") has announced that its planned mining
rate at the Lupoto Copper Project, which forms part of the Kalumines property
in the Democratic Republic of Congo ("DRC"), was achieved shortly after the
end of the period under review.
    In addition, high-grade exploration drilling intersections at the Lupoto
Copper Project were announced during the quarterly period. Phases 1 and 2 of
the drilling program have now been completed: these phases confirmed and
verified the historical mineral resource estimate for the Lupoto Copper
Project; while a further phase 3 drill program that is aimed at increasing the
resource for the larger mine feasibility study, is advancing. Full disclosure
regarding the reported exploration drill results, can be found at:
www.tealmining.com.
    Shortly after the end of the period under review, planned mining
production levels were exceeded, and mechanized sorting equipment, primarily
screening plants and conveyor belt systems, started commissioning to improve
efficiencies of the manual sorting process. Laboratory test work on the
leaching of the finer copper containing material at the Lupoto Copper Project
has been completed and is showing encouraging results. A feasibility study on
a larger open pit mining operation at the Lupoto Copper Project, together with
a dedicated processing facility at Lupoto to produce LME 'A' grade copper
cathodes, is in progress.
    The authorities in the DRC have established a Commission to review mining
licences and other agreements. This Commission, under the authority of the
Minister of Mines, was to report its findings to Cabinet and for review by the
Presidency during November 2007. The over-riding objective is to create a
cohesive policy and an investor friendly environment for mining in the DRC.
TEAL fully supports this initiative and has co-operated with the review
process. The mining title held by TEAL, through Kalumines, has not been
questioned and the Company awaits the formal release following the Cabinet's
consideration. In a public statement made today, November 14, 2007, the
Governor of the Katanga Province in the DRC, Mr Moise Katumbi, re-assured
investors that as Governor he continues to promote ".....a positive investment
climate for responsible mining companies, which operate according to
internationally recognized standards and who undertake social programs, which
have a positive impact on the communities....". The Governor concluded his
statement by encouraging mining companies to continue investment programs "in
spite of rumours of a non-official document by the Commission reviewing the
mining contracts".
    TEAL Metals purchases all the concentrates produced at Kalumines' Lupoto
Copper Project. This furnace, which is expected to complete hot commissioning
before the end of 2007, has a capacity to produce approximately 5,000 tonnes
per year of blister copper ingots with a grading of 85% to 95% copper. The
surplus concentrates, some 1,400 tonnes a month, are being sold to various
other smelter operators in the DRC, in particular, to Société Miniere du
Katanga s.p.r.l. ("Somika") with whom TEAL Metals has formed a joint venture
to process the excess copper ore material at Somika's facilities. TEAL Metals
supplies the concentrate at a pre-determined price and Somika provides all
resources, where after profits are being shared on a formula basis.
Approximately 99 tonnes of blister copper was produced through this
arrangement and was sold subsequent to the end of the quarter under review.
    The technical aspects of the Konkola North Copper Project feasibility
study, based on an operation to exploit the South and East Limb areas of the
ore body, have been completed. The study has confirmed the practicality of
using the existing shaft to gain access to the ore body by mining first in the
South Limb area, followed by the development and mining of the East Limb area.
The Company is now continuing to assess the viability of a dedicated
processing facility for Konkola North, which is being analyzed as a separate
project, and is being combined with the underground feasibility. Certain long
lead items are being acquired, such as a mill, mine shaft winders and the
electrical requirements for the winder system, upgrading of the mine power
supply and the detailed design of the steelwork sections in the shaft that
require replacement. Management expects that the Konkola North Copper Project
final feasibility study will be completed by early 2008 and, following
discussions with TEAL's partner in the project, ZCCM Investment Holdings plc,
it will be prepared for a decision by the Company's Board of Directors during
the first quarter of 2008.
    The exploration drilling program on Konkola North's Area 'A' Extension is
continuing and a second drill rig will be operational within the current
quarter. Following a re-interpretation of the geological model in the area,
the second drill rig will be strategically positioned to enhance the
understanding of the mineralization.
    When TEAL completed its initial public offering on the TSX in November
2005, the Otjikoto Gold Project's resource estimate totalled 873,000 ounces in
the inferred category. Following significant drilling and geological
interpretation since that time, an updated National Instrument 43-101 for the
Otjikoto Gold Project was recently filed with the relevant authorities in
Canada. The independent company that completed the report, titled Otjikoto
Gold Project - Otavi Region, Republic of Namibia - Independent Technical
Report (van der Merwe & Wanless, September 2007), was SRK Consulting (South
Africa) (Pty) Limited ("SRK"). The report includes additional infill and
extension drilling and the changes reflect extensions of all three mineralized
zones based on the additional drilling results. SRK recognizes areas of higher
risk, particularly on the Bottom Veins Zone, and these areas have remained
classified as inferred resources. SRK consider however that the confidence in
the estimates in the area with closely spaced drilling has increased
significantly.

    
    A summary of SRK's mineral resources for TEAL's Otjikoto Gold Project is
    as follows:

    -------------------------------------------------------------------------
    Weathering       Classification        Mt        Aug/t        koz Au
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Oxide            Indicated            2.1         1.32            88
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                     Inferred             0.6         1.33            25
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Fresh            Indicated            9.7         1.19           372
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                     Inferred            31.5         1.28         1,295
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    TOTAL            Indicated           11.8         1.21           460
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                     Inferred            32.1         1.28         1,320
    -------------------------------------------------------------------------
    

    SRK support the classification as inferred and indicated mineral
resources, and additionally consider there to be potential for definition of
additional mineral resources and further upgrading the categories as the
drilling density increases and the extent of drilling increases to the
southwest of the current project area.
    TEAL recorded a consolidated net loss for the three months ended
September 30, 2007 of $10.4 million, or $0.19 loss per share, which compares
to a net loss for June 30, 2007 of $8.6 million, or $0.16 loss per share. This
quarter-on-quarter increase is indicative of the accelerated expenditure that
occurred on the exploration drilling program in the DRC, as well as the
commencement of mining and the start of commissioning of the electric-arc
furnace.
    As at September 30, 2007, the Company had available resources of
$3 million remaining from a $20 million bridge loan facility secured in May
2007. Additional funding in the form of a $50 million bridge loan facility,
guaranteed by ARM, has been secured with a commercial bank and replaces the
$20 million facility entered into in the last financial year.
    Over the quarter, the Company recorded $9.4 million net cash outflows on
operating activities compared to net cash outflows of $7.5 million for the
previous quarter. The cash was mainly used for exploration, feasibility
studies, activities to advance the Company's projects, including resource
expansion drilling, and expenses related to mining at Kalumines in the DRC.
The significant increase in the Inventory relates to the stock-pile build-up
that has accumulated as a result of the mining operation at the Lupoto Copper
Project.
    The recently announced bridging facility is unsecured, matures on August
31, 2008, and each advance will be at a minimum amount of $5 million. The
proceeds of the facility will be used for general corporate funding
requirements, as well as working and other capital requirements, inter alia:

    
    -  Kalumines' Lupoto Copper Project in the DRC where planned mining
       production levels for the phase 1 mine are being achieved and where
       the construction of a demonstration plant will commence shortly for a
       phase 2 operation aimed at increasing production levels, plant
       expansions and efficiencies;
    -  Continuing exploration drilling to verify, upgrade and expand the
       presently defined, historical inferred resource estimate at the Lupoto
       Copper Project;
    -  The electric arc furnace in Lubumbashi, DRC, that is in the process of
       commissioning;
    -  Finalizing the feasibility study on the Konkola North Copper Project
       in Zambia and the acquisition and order placement of various long-lead
       items for the project; and
    -  Continuing the exploration drilling campaign that is underway on Area
       "A" Extension on the Konkola North property.
    

    Funding to continue the exploration drilling program and complete a
pre-feasibility study on the Otjikoto Gold Project ("Otjikoto") in Namibia
will be drawn from the expected payment from EVI Mining Company Limited
("EVI"). The transaction between TEAL and EVI comprises the intended
subscription by EVI of an initial 10% of the share capital in an indirectly
held TEAL subsidiary, Avdale Namibia (Proprietary) Limited ("Avdale"). Payment
totals $5.5 million: made-up as to $4.4 million for 8% on closure of the final
agreements, and $1.1 million payable within six months after closure for the
balance, resulting in the 10% equity interest in Otjikoto and the surrounding
assets. TEAL has also given EVI an option to acquire a further 5% following
the completion of a definitive feasibility study assessing the viability of
developing Otjikoto. The option on the additional 5% interest in Avdale will
be priced, according to fair market value principles, at the time of the
delivery of the feasibility study. The shareholders of EVI are broad-based and
include various investment companies owned by Namibians, including Omankete
Investment (Pty) Limited, the Namibian Mine Workers Investment Company, Pamue
Investments Corporation and the Omusati Women Empowerment Group. EVI's
Chairman is Dr Leake S. Hangala.
    Mr. Claus Schlegel, Pr. Sci. Nat. (No. 400149/90), TEAL's Vice President:
Exploration and Business Development, is the "qualified person" for the
content of this press release for purposes of National Instrument 43-101.

    NOTE:

    TEAL is incorporated under the laws of the Yukon, Canada and its common
shares are listed on the Toronto Stock Exchange ("TSX") and the JSE Limited
("JSE"). The common shares of the Company trade under the symbol "TL" on the
TSX and "TEL" on the JSE.
    TEAL is a mineral development and exploration company with development
projects and exploration areas in Namibia, Zambia and the Democratic Republic
of Congo ("DRC"). TEAL has a portfolio of base and precious metal development
projects and complementary exploration areas, and the Company continues to
seek other opportunities, mainly in southern and central Africa.
    TEAL has targeted specific projects: the Konkola North Copper Project in
Zambia; the Otjikoto Gold Project in Namibia; and the Kalumines Copper-Cobalt
Project in the DRC. TEAL also has interests in various other mineral licence
areas in Zambia and in Namibia on which the Company continues drilling and
other exploration activities.

    A copy of TEAL's Annual Financial Statements and the MD&A are available
at www.sedar.com as well as at www.tealmining.com




For further information:

For further information: Julian Gwillim (VP: Investor Relations and
Corporate Development) on (416) 828-1422 (Canada), or +27 82 4524 389 (SA), or
julian@tealmining.com; or Rick Menell (President and CEO) on +27 82 450 2301,
or rick@tealmining.com

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