Blackthorn Resources waits on Glencore Perkoa project study results

Wednesday, September 07, 2011

Blackthorn Resources (ASX: BTR) managing director Scott Lowe told Reuters that Blackthorn would be a "reluctant seller" if Glencore International (LON:GLEN) made an offer for the remainder of the Perkoa zinc project in in Burkina Faso.

Perkoa is being developed as a partnership 50.1 percent owned by Glencore, 39.9 percent by Blackthorn and 10 percent by the government of Burkina Faso.

The Perkoa zinc mine in Burkina Faso will start shipments of concentrate in mid-2012, building to an annual rate of 90,000 tonnes contained metal.

Blackthorn is awaiting the results of a study by Glencore into the viability to include silver and lead production at Perkoa, a 40% increase in plant capacity to 1 million tonnes per annum and the introduction of open-cut mining to supplement the underground production.

Market speculation has it that Glencore could make an offer for the remainder of the Perkoa project.

Glencore invested $80 million into the project before acquiring a 13 percent stake in Blackthorn and is Blackthorn's largest shareholder.

Cash on hand at 30 June 2011 was $15.4 million.

Investec has placed a target share price of $1.10 on Blackthorn. Blackthorn last traded at $0.49.

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