Resource categories revised at Konkola North, and feasibility studies well advanced



    
    - Resources upgraded into Measured and Indicated categories
    - Feasibility studies for the development of the South and East Limb
      ore bodies nearing completion
    

    TORONTO, April 23 /CNW/ - TEAL Exploration & Mining Incorporated
(TSX-"TL") (JSE-"TEL") ("TEAL" or the "Company") has today announced Measured
and Indicated resources for the South and East Limbs of Konkola North, and
provided an update on the Konkola North Copper Project feasibility study.
    The Konkola North property consists of a single large-scale mining
licence covering an area of 44 square kilometres. The Konkola North copper
resource is the second-largest known copper resource on the Zambian
Copperbelt. TEAL currently has 100% ownership of the Konkola North Copper
Project with ZCCM Investment Holdings plc, a company controlled by the Zambian
government, retaining the option of buying a stake of up to 20%.
    TEAL had previously reported inferred mineral resources of 78.8 million
tonnes at 2.14% copper at Konkola North for the South and East Limb areas (see
Table 1). The updated Measured and Indicated Resource statements for these
areas are now (see Table 2):

    
    - Combined:    24.9 million tonnes at a grade of 2.36% copper;

    - South Limb:  11.3 million tonnes at a grade of 2.35% copper; and

    - East Limb:   13.5 million tonnes at a grade of 2.37% copper.
    

    A further resource of 47.7 million tonnes at 1.98% copper is estimated in
the Inferred category within these areas.

    RE

SOURCE ESTMATION UPDATE Mining Consulting Services, a subsidiary of Gijima AST Limited ("GijimaAST"), has completed data validation, geological modelling studies and a geostatistical resource model of the Konkola North East and South Limb deposits. The GijimaAST geostatistical resource estimation model uses the existing resource blocks previously defined in the Technical Report that was published at the time of TEAL's initial public offering in November 2005, completed by RSG Global (Pty) Limited. At that time, the entire Konkola North resource was categorized as an Inferred resource. The current resource estimation conducted by GijimaAST uses unfolding techniques and applies ordinary kriging. TEAL is currently re-defining the resource blocks based on geological boundaries and priorities of the proposed mining schedules for the South and East Limb ore bodies. A further resource estimate and optimisation study is being undertaken by GijimaAST. Table 1: Previously Disclosed Inferred Mineral Resource Statement Deposit Mineral Resource Tonnes Total Cu Contained Category (millions) (%) Copper (Mlb) ------------------------------------------------------------------------- East Limb Inferred 29.43 2.52 1,636 ------------------------------------------------------------------------- South Limb Inferred 49.40 1.92 2,091 -------------------------------------------------------- Total 78.83 2.14 3,727 ------------------------------------------------------------------------- Table 2 (a): New Resource Estimation Statement Deposit Mineral Resource Tonnes Total Cu Contained Category (millions) (%) Copper (Mlb) ------------------------------------------------------------------------- East Limb Measured 10.42 2.40 551 -------------------------------------------------------- Indicated 3.14 2.24 155 -------------------------------------------------------- Subtotal & mean 13.56 2.37 706 -------------------------------------------------------- Inferred 17.20 2.65 1,004 ------------------------------------------------------------------------- South Limb Measured 4.42 2.40 234 -------------------------------------------------------- Indicated 6.89 2.32 352 -------------------------------------------------------- Subtotal & means 11.32 2.35 586 -------------------------------------------------------- Inferred 30.55 1.60 1,077 ------------------------------------------------------------------------- Table 2 (b): New Resource Totals South and Total Measured East Limbs and Indicated 24.88 2.36 1,292 -------------------------------------------------------- Total Inferred 47.75 1.98 2,081 ------------------------------------------------------------------------- Area 'A' and Area 'A' Extension (see Figure 1) Previously reported resources relating to the southern portion of the Konkola North property indicate an inferred mineral resource of approximately 107 million tonnes (in Area 'A') and 63 million tonnes (in Area 'A' Extension) at copper grades of 2.30% and 3.88%, respectively. Additional exploration drilling work is required to increase the geological confidence of these resources. TEAL has issued tenders to four drilling companies to undertake an 18,000 metre drilling program in the Area 'A' Extension. This drilling will explore and further define the high grade intersections returned by boreholes in the Area 'A' Extension. Responses to drilling tenders have been received and are presently being evaluated with drilling scheduled to commence in May 2007. SRK Consulting (South Africa) (Pty) Limited ("SRK") reviewed drill core previously drilled in the Area 'A' Extension in order to undertake an initial geotechnical appraisal of the geological formations. Murray & Roberts Cementation (South Africa) (Pty) Limited completed a conceptual engineering design work for a 1,200 metre deep shaft, with costing, and TEAL subsequently completed a financial scoping model of a conceptual mine, and a metallurgical processing facility with related infrastructure. The positive result of this assessment study has contributed to the motivation of the 18,000 metre exploration drilling program for the Area 'A' Extension. FEASIBILITY STUDY UPDATE Existing infrastructure at the Konkola North South Limb deposit includes a 423-metre deep, vertical and concrete lined shaft, with head-frame, two ventilation shafts and three main access haulage levels, interlinked with several production sub-levels. The Konkola North Copper Project feasibility study, based on an operation to exploit the South and East Limb ore bodies, remains on-track and the completed study is expected by mid-2007. The study for this mine will also include an assessment of the viability of initial mining from the South Limb's existing shaft and accessible workings and possibly toll-processing the ore produced. The technical aspects and economics of this 'rapid-entry' study are largely complete and are currently being audited. Following the installation of an extraction fan in one of the ventilation shafts to ensure proper ventilation in the old mine, a winder was installed during August 2006 and the first underground inspection occurred in September 2006. Access to the shaft bottom, haulages and sub-levels has now been secured. A second access is in place from No. 3 level to surface, through the old workings and the shaft ladder-way. Mapping of all cross-cuts and sampling of the orebody is advanced, while a detailed mine survey is being completed. During November 2006, TEAL undertook the first blasting underground in over 40 years on the No. 2 level to extract a 50 tonne copper ore sample for confirmatory metallurgical test work. A total of six geotechnical/geohydrological drill holes on No. 2 level were completed, and additional drill holes from No. 3 level are in the final stages. 'Packer' test work for hydrological studies in the footwall and hanging wall has also been completed. Geotechnical and geo-hydrological drill holes to assess, among other factors, possible impacts on the position of waste rock dumps and tailings have been completed. As part of the feasibility study, Murray & Roberts Cementation (South Africa) (Pty) Limited completed an assessment of the shaft engineering infrastructure. Mining Consulting Services has completed the mine design, planning, ore extraction scheduling, costing and related studies. Grinaker LTA, a subsidiary of Aveng Limited, has provided the costing information for a decline on the East Limb ore body and Bluhm Burton Engineering (Pty) Ltd has completed the ventilation design work for the East and South Limb mines. Dowding Reynard & Associates (Pty) Ltd was contracted to undertake the plant design, costing and related engineering studies. These studies have been completed. SRK has completed its work on the Environmental Impact Study for the Konkola North Copper Project and Geotail has also completed the design of the tailings and waste rock facility. The necessary permitting and licensing negotiations are in progress and a power agreement is being negotiated with the Copperbelt Energy Corporation. 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. More information about TEAL is available at www.tealmining.com

For further information:

For further information: Julian Gwillim, VP, Investor Relations and
Corporate Development, +27 (0) 82 4524 389, or julian@tealmining.com; or Rick
Menell, President and CEO, +27 82 450 2301, or rick@tealmining.com

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