TORONTO, ONTARIO--(Marketwire - Dec. 19, 2011) - Montero Mining and Exploration Ltd. (TSX VENTURE:MON) ("Montero") has appointed Turgis Consulting (Pty) Ltd. (Turgis) to undertake an independent Preliminary Economic Assessment (PEA) for its Duyker Eiland Sedimentary Phosphate Project in terms of the Canadian National Instrument 43-101. Turgis is a Johannesburg based engineering consultancy, focused on the mining industry, and has over 20 years of experience in engineering projects for mining companies in Africa.
||Dr Tony Harwood, President and Chief Executive Officer of Montero commented, "We are pleased to announce that a PEA on the initial Inferred NI 43-101 Mineral Resource at Duyker Eiland is well underway. Turgis have valuable local expertise and have been involved with this project throughout the due diligence exercise completed prior to acquisition. Turgis are also providing mining consulting services on our flagship Wigu Hill Rare-Earth Project in Tanzania as we focus on bringing this into production, however the phosphate assets provide excellent value-add to Montero's portfolio."
The purpose of undertaking this PEA is to demonstrate whether there is a positive business case for the project and to examine under which circumstances the business case is positive.
Other outcomes include:
- The motivation and definition of scopes of work required for any pre-feasibility study conducted in the future.
- To provide a conceptual mine, plant and infrastructure layout.
- A basic risk assessment to determine any fatal flaws and areas of sensitivity, which require particular focus in the future.
Work on the PEA has commenced and is due to be completed by year-end. The technical report related to this work is scheduled to be issued during the first quarter of 2012.
This PEA follows the successful completion of an exploration program and a NI 43-101 Inferred Mineral Resource Estimate of 32.8 M tonnes, grading at 7.15% P2O5 prepared by AMEC Earth & Environmental (UK) Limited (AMEC). The PEA study will be based on the same resource model used for the reported Mineral Resource, although further review will be conducted to ensure that the cut-off and other parameters applied are still appropriate. Preliminary metallurgical test work supervised by Turgis has indicated that an acid-grade phosphate concentrate of 33% P2O5 to 35% P2O5 (72.1% BPL* to 76.5% BPL) can be produced by flotation.
* The phosphate content of a commercial concentrate is often expressed as Tricalcium Phosphate, traditionally referred to as BPL or bone phosphate of lime (BPL = P2O5 x 2.1853).
Qualified Person's Statement
The Turgis PEA team is headed by Sten Johansson (MSAIMM), a Process Engineer and a qualified person for the purpose of National Instrument 43-101. Mr. Johansson has first hand experience operating a phosphate beneficiation plant at a phosphate mine that once operated 25 km from Duyker Eiland. Andrew Pooley (FSAIMM) is a Mining Engineer and a qualified person for the purpose of National Instrument 43-101 and will cover the mining aspects of the PEA. Technical information contained in this press release has been reviewed by Mr. Mike Evans, M.Sc. Pr.Sci.Nat., who is a qualified person for the purpose of National Instrument 43-101 and a Consulting Geologist to Montero.
About Montero Mining & Exploration
Montero Mining and Exploration Ltd. Is a mineral exploration and development company engaged in the identification, acquisition, evaluation and exploration of mineral properties primarily focused on rare earth elements (REE), phosphates and uranium in Tanzania, South Africa and Quebec, Canada respectively. Montero is focused on adding value for all shareholders through the acquisition and exploration on properties, which have the highest potential for future discoveries or development of existing mineral resources into mineable reserves. We remain engaged in the development of our flagship Wigu Hill Rare Earth Element Project in Tanzania, which is a high-grade, undeveloped Light Rare Earth Element deposit. The Company's current focus is on updating the initial NI 43-101 Mineral Resource Estimate and advancing the hydrometallurgical testwork with Mintek. With the rising prices of REEs and China's control over export quotas, it is becoming imperative that the rest of the world develops new rare earth resources to meet the increasing demand from "green" technology and high-tech applications.
Montero's growth strategy is to develop the Wigu Hill Rare Earth Element project and to bring this to account through eventual rare earth production and cash flow, while operating in an environmentally and socially responsible manner. We will continue to add value for all stakeholders through the development of our portfolio of properties. Montero trades on the TSX Venture Exchange under the symbol MON.
Signed. Dr. Tony Harwood - President and CEO
CAUTIONARY STATEMENT: This News Release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.