Argonaut Resources NL (ASX:ARE) is ready to continue a fast-tracked feasibility study at the Nyungu Deposit in Zambia, pending the outcome of investigations into the purported cancellation of exploration licence e 22399-HQ-LEL, Lumwana West.
In a statement updating investors, the company said the relevant Zambian Government authorities are investigating the purported cancellation of the exploration licence following in-person representations by Argonaut.
Restoring investor confidence in Zambian mining sector
Director and CEO Lindsay Owler made these remarks: “Our circumstance has arisen at a time when the newly-elected government is working hard to restore investor confidence in the Zambian mining sector.
“Our matter also coincides with the announcement that Zambia aims to increase its copper production to 3 million tons per annum within 10 years, an outcome that can only be achieved if a number of new copper mines are opened.
Work undertaken earnestly
“Argonaut’s work on the Nyungu Deposit involved various studies which were specifically aimed at demonstrating the commercial viability of copper-cobalt production at Nyungu.
“Feasibility work by Argonaut included programs of metallurgical test work, process engineering studies, mineral resource drilling, resource estimation, and mining engineering studies.
“This work was being undertaken earnestly and expediently by Argonaut in the spirit of and in compliance with the Zambian Mining Act.
“It is exactly the type of work required of foreign investors if Zambia is to realise its goal of greatly increased copper production.
“Argonaut is ready to continue a fast-tracked feasibility study in the event the Lumwana West licence is reinstated.”
About Argonaut Resources
Argonaut Resources is an ASE-listed exploration and development company focused on the Murdie Copper Project in South Australia and copper development at the Nyungu copper-cobalt deposit at Lumwana West project in north-western Zambia.
