Kalumines reports excellent operational results and exploration drilling program completed

    -   First operating revenue from sales of copper concentrates from Lupoto
        in the DRC, which has reached planned production levels
        -  The phase 1 mine has achieved annualized production levels with
           over 11,000 tonnes of copper concentrates produced over the last
           six months

    -   Exploration drilling completed at Lupoto
        -  Significant results reported and resource estimation advanced
        -  Deeper drilling at Lupoto intersects massive copper sulphide
           mineralization from 190m to 223m

    -   Feasibility study for the Konkola North Copper Project in Zambia
        presented to the Board

    -   First drilling intersection of 11.71m @ 4.17% received from the
        resource upgrade program on Konkola North's Area 'A'
        -  Results compare favorably with historical drill results

    -   Exploration drilling at the Otjikoto Gold Project in Namibia delivers
        additional high-grade results, including 3.33g/t gold over 17.1m and
        9.53g/t gold over 16.2m
        -  Pre-feasibility study advanced with completion expected in April

    TORONTO, Feb. 14 /CNW/ - In releasing results for the period ended
December 31, 2007, TEAL Exploration & Mining Incorporated (TSX-"TL")
(JSE-"TEL") ("TEAL" or the "Company") announced that its Lupoto mine in the
Democratic Republic of Congo ("DRC") has been commissioned and planned
production levels are being achieved.
    The initial production target at Lupoto, which forms part of TEAL's
Kalumines mining licence area, was to produce 20,000 tonnes per year of
concentrate. The actual production achieved during the quarter ended December
31, 2007, was slightly more than 9,000 tonnes of concentrate, grading 25%
copper, and over 11,000 tonnes over the six months ended December 31, 2007. At
full production, and together with other sales contracts being negotiated, a
revised mining rate is now planned at 140,000m(3), or 350,000 tonnes, a month
of mineralized and waste material.
    Approximately 50,000 tonnes a month of mineralized material will pass
through the sorting process and the lower grades, of 3% copper, are being
stock-piled for future use in a processing plant, which is under investigation
through a feasibility study for a larger mining operation.

    The table below provides an operating summary for the six and three
months ended December 31, 2007:

                                                   Six months   Three months
                                                        ended          ended
                                                 Dec 31, 2007   Dec 31, 2007
      Run-of-mine material               m(3)         702,723        420,097
      Mineralized material                 t          229,231        158,828
      Copper concentrate produced          t           11,013          9,060

      Copper sold
       - Lumpy material                    t            5,543          5,543
       - Fine material                     t              699            699

      Grades (in sold product)
       - Lumpy material                    %            25.31          25.31
       - Fine material                     %            17.77          17.77

    Processing (furnace)
      Ore input                            t              937            937
      Ore input grade                      %            23.01          23.01
      Processing cost per ton          US$/t           11,642         11,642
      Copper Blister produced              t              139            139
      Copper Blister grade                 %            94.80          94.80
      Copper Blister sold                  t              104            104
      Copper average net selling price   US$            5,911          5,911
      Copper LME price                   US$            7,000          7,000

    The furnace is in the build-up phase presently and it is anticipated that
1800 tonnes a month will be fed into the furnace in the near future. The
processing costs will substantially decrease as the furnace becomes fully
    Laboratory test work on the leaching of the fine-grained copper material
("fines") has shown encouraging results. The construction of a demonstration
plant to leach the fines and to produce a final product, through a cementation
process, has started commissioning. A pre-feasibility study on a large open
pit mining operation at the Lupoto Copper Project, together with a processing
facility to produce up to 40,000 tonnes a year of LME 'A' grade copper
cathodes, is in progress and management expects this to be completed during
April 2008.
    The Commission, established to review mining licences and other
agreements in the DRC, has not as yet issued a final report. The mining title
held by TEAL, through Kalumines, has not been questioned and the Company
awaits formal release following the Cabinet's consideration.
    All three phases of TEAL's exploration drilling campaign at the Lupoto
Copper Project, which started in March 2007, have now been completed. The
first two drilling phases were undertaken to confirm and verify the historical
mineral resource estimate and to undertake infill drilling to upgrade the
mineral resource confidence level. The third phase of drilling was aimed at
increasing the resource along strike in areas previously not drilled. The
Lupoto Copper Project resource is now being reviewed by SRK Consulting to
produce an Independent Competent Persons report compliant with the National
Instrument 43-101 ("NI 43-101"). The drilling results can be viewed in detail
by accessing: www.tealmining.com

    Highlights from selected assay results for the Lupoto Copper Project are:

    BOREHOLE                   Depth from            Drill   Copper   Cobalt
                                       (m)  thickness(*)(m)      (%)      (%)
    LPO151                             79             23.8     6.80
    Including                                         12.8              0.20
    LPD009                             48               10     2.18
    Including                                            4              0.75
    LPO147                             30             15.6     4.31
    LPR007                             48               34     7.12
    LPR008                             75               18     6.47
    LPDR007                            89               24     2.69
    LPDR007                           121                7     4.06
    LPO112                            4.5             21.2     4.78
    LPR009                             11               21     4.10
    LPR009                             45                8     7.19
    Including                                            6              0.12
    LPBR022                            99               13     4.47
    LPDR023                            44                8     9.87
    LPDR002                           100                7     8.28
    LPDR002                           110               27     2.88
    Including                                           17              0.32
    PDR016                             57               15     2.02
    LPO124                             76             14.3     3.07
    LPR002                             62                7     6.07
    Including                                            3              0.82
    LPRR049                           125               18     4.13
    LPRR019                            77                6     2.75
    LPRR019                           105               15     2.48
    LPR020B                            37               43     5.24
    Including                                           13              0.15
    LPRR005                            57               40     4.05
    Including                                           13              1.00
    LPRR006                            20               33     1.47
    Including                                            9              0.15
    LPRR012                             4               28     2.71
    Including                                            7              0.36
    LPRR011                            57               24     5.12
    Including                                            8              0.96
    LPD010                             61                6     2.04
    Including                                            2              0.20
    LPO142                             50              8.6     1.11
    Including                                          1.5              0.20
    (*) "True widths" intersections will be reported on finalization of the
    43-101 compliant resource.

    The Lupoto Copper Project geological structure occurs over a distance of
approximately 3.7 kilometres.
    Borehole LPR/D 0410, collared at some distance to the east on line 700N
to intersect the target geology at depth, intersected massive sulphide copper
mineralization, mainly chalcopyrite, between vertical depths of 190 metres to
223 metres. This borehole indicates that the copper mineralization is well
developed at depth in this area, but changes from predominantly oxide copper
to massive sulphide copper. Assays are being awaited from this intersection,
and additional drilling will be undertaken to evaluate further the potential
of sulphide copper mineralization.
    TEAL has appointed Sphynx Consulting as an independent consultant to
conduct the database verification, geological modeling, ore body modeling and
resource estimation work. A geological model has been created and the
mineralized area has already been modeled for the Lupoto Copper Project
between grid lines 800N on the western limb to 800N on the eastern limb.
Geological modelling to the 1350N line on the eastern limb is in progress.
Resource estimation work has also commenced. TEAL has appointed SRK Consulting
as the Qualified Person to complete the Independent Qualified Persons Report
on the Lupoto Copper Project. These recent analytical results are certified by
ALS Chemex Laboratory in Johannesburg, South Africa an internationally
accredited facility.

    TEAL conducted reconnaissance drilling over the Karu occurrence on its
Kalumines mining licence. The occurrence occurs about 5km south of the Lupoto
Copper Project. Three boreholes were completed and encouraging copper and
cobalt results were received. Some of the drilling highlights include:

    -   21 metres grading 2.57% copper, including 20 metres at 0.35% cobalt,
    -   39 metres grading 3.25% copper, including 15 metres at 0.46% cobalt;
    -   16 metres grading 0.33% cobalt.
    "True widths" intersections will be reported on finalization of the
    43-101 compliant resource.

    TEAL Metals purchases concentrate from the Lupoto Copper Project.
Approximately 1,800 tonnes a month of concentrates will eventually be smelted
in TEAL Metals' electric-arc furnace. Furnace operations were halted during
late December 2007 due to refractory concerns. After the refractory re-lining,
the start-up was hampered by power disruptions, which have since been resolved
and the furnace is being re-commissioned.
    The feasibility study for the Konkola North Copper Project in Zambia has
been presented to the Board of Directors for review and consideration.
    TEAL is currently undertaking an 18,000 metre drilling program to upgrade
the resource at Konkola North's Area 'A'. The first intersection was received
during the quarter under review. The assays of the mineralised intersection
returned copper grades of 4.17% over a true width of 11.71 metres. The
drilling program is continuing.
    TEAL recently announced further high grade drilling results from its
Otjikoto Gold Project in Namibia.

    The results include:

    -   OTR196 from 38 metres to 57 metres grading 3.33g/t gold over a true
        thickness of 17.1 metres; and
    -   TC40 from 68 metres to 86 metres grading 9.53g/t gold over a true
        thickness of 16.2 metres.

    This 'western high grade zone' has now been shown to extend some 700
metres 'up plunge' and along strike from its initial intersection in borehole
OT88. The zone is also known to continue down plunge from OT88, to the
southwest, for a further 250 metres strike extension.
    The existing, compliant (National Instrument 43-101), Otjikoto resource
comprises 460,000 ounces of gold in the indicated category or 11.8 million
tonnes grading 1.21g/t and an additional 1.32 million ounces of gold in the
inferred category, or 32.1 million tonnes grading 1.28g/t. The total contained
gold estimate, as of the September 11, 2007 independent Technical Report
compiled by SRK Consulting (South Africa) (Pty) Limited, is 1.78 million
ounces of gold. TEAL anticipates completing updated resource estimations by
    The Otjikoto Gold Project is situated within TEAL's Otavi Exploration
Area, which totals some 3,800km(2) in northern-central Namibia, where TEAL
discovered the vein-hosted, 'free' and often coarse particulate gold
mineralization. The deposit is located close to well developed infrastructure.
    The current phase of exploration and infill drilling comprises some
16,000 metres of reverse circulation ("RC") drilling and 9,500 metres of
diamond core drilling. In total, 201 RC boreholes and 65 core boreholes have
been completed in the infill drilling area. This drilling is designed to
increase the indicated resources and to provide an area where mine planning
and scheduling can be undertaken. The drilling program is nearing completion.
    Additional drilling is ongoing to delineate the higher grade zones
previously intersected within the south-western area of the Otjikoto area. A
number of boreholes are also targeting the expansion of the existing resource
base of the deposit.
    TEAL has started a pre-feasibility study on Otjikoto and anticipates the
completion of the study by mid-2008. Depending on the result of this study, it
will be followed by the immediate initiation of a bankable feasibility study.
    Over the last quarter, the Company generated its first operating revenue
following sales of copper concentrates from the Lupoto Copper Project in the
DRC, which reached full production towards the end of the 2007 calendar year.
After deducting cost of sales of $2.0 million, a gross profit of $2.1 million
was recorded for the three months from the DRC mining operation. After
deducting other expenses, primarily exploration and development expenses of
$7 million, the bulk of which was spent in Zambia, partially offset by a gain
on dilution of interest in Avdale, TEAL recorded a consolidated net loss for
the three months ended December 31, 2007 of $4.8 million, or $0.09 loss per
share. This compares to a net loss for the three months ended September 30,
2007 of $10.4 million, or $0.19 loss per share.
    As at December 31, 2007, the Company had available resources of
$15.0 million of the $50 million bridge loan facility that was secured with
Standard Chartered Bank, which is being guaranteed by TEAL's major
shareholder, African Rainbow Minerals Limited, and is repayable on August 31,
    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.


    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 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 core 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.

For further information:

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

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890