Received this news release a few minutes ago:
Colossal Resources Corp -
KMPP Processing Update
Colossal Resources Corp CLPZF
Shares issued 6,055,278
Fri 25 Apr 97
Our processing centre at Kabwe (KMPP) has two 15 tonne electric arc
furnaces and two induction furnaces with associated granulation units.
The two 15 tonne electric arc furnaces currently process 40-50 tonnes of
slag per day working 1-1/2 shift. This will double with the introduction of
three shift working schedule programmed to take effect from May/June 1997.
The current alloy production is 3-4 tonnes a day grading approximately 15%
cobalt and 20% copper. The granulated alloy is currently being marketed at
US$12 - US$13 per pound of contained cobalt while the finely milled alloy
is sold at USS14 - USS15 per pound of contained cobalt (i.e. 0.5 tonnes of
cobalt metal in alloy per day). The value of this volume of material which
depends on whether it is in granules or finely milled form, ranges between
US$13,200 and US$16,500 (500kg x 2.2 (lbs) x US$12 or US$15). Working 25
days a month the monthly value of production at current level ranges
between US$330,000 to US$412,500. The projected earnings are set to double
within the next six months and possibly treble for the following reasons:
With effect from May/June a three shift operation is programmed
With effect from May a third furnace (10 tonne electric arc furnace) will
become operational
The SACOLCo plant (former Barplats refinery) at Johannesburg, South Africa
will begin producing cobalt salts (oxide, hydroxide and sulphate) which
will increase the value of marketed product by 30%-40% for a fractional
cost increase
A pure cobalt metal product at SACOLCo would also yield saleable copper
metal
An increase in cobalt metal content in alloy is achievable
To Summarize
Current Production
Daily Production: 3-4 tonnes of 12-15% cobalt alloy which is induction
melted, granulated and milled
Essentially 2 size fractions available:
i) -2mm granules of cobalt alloy
ii) 100 micron powder of cobalt alloy
Value of daily output around US$13,000
to US$16,000
Already Sold
i) 3.375 tonnes of granules
ii) 228 tonnes of granules
(awaiting shipment)
iii) 2 tonnes of granules sold
awaiting dispatch
iv) 30 tonnes of granules for SACOLCo
treatment and direct sales
Projected within next 6 months
20 tonnes of alloy daily averaging 2.5 - 3 tonnes of contained cobalt =
over USS80,000
Above figures based on current production level and projections are
conservative.
Current buyers are from China and Europe
Orders (long term purchase contracts) being discussed with Japanese,
Indian, Chinese and European customers
Prepared by Mr Nic Money, Technical Director of Africa Operations
Colossal Resources Corp trades on NASDAQ - CLPZF
Friday close 1 7/16
Friday volume 308,000 shares
For further information contact Thomas Corcoran (Corporate Communications)
at:
North American Toll Free: 1-800-298-0244
E-Mail: info@colossal-cobalt.com
Web Site: www.colossal-cobalt.com |
