Initial Production Test at KRP (3163C)

TIDMZOX

RNS Number : 3163C

ZincOx Resources PLC

30 April 2012

30 April 2012

ZincOx Resources plc

("ZincOx" or the "Company")

Initial Production Test at Korean Recycling Plant

Key Highlights

   --    First production of zinc oxide concentrate 
   --    Process demonstrated 
   --    Zinc recovery in the range 87%-96% 
   --    Zinc oxide concentrate has zinc grade in the range 55%-63% 
   --    Iron metallisation in the range of 75%-88% 
   --    Plant optimization will improve results 
   --    Start Up Permit obtained 

ZincOx Resources plc (AIM: ZOX) is pleased to announce the initial operation of its wholly owned Korean Recycling Plant.

During the initial production test the plant ramped up to 50% of capacity and produced zinc concentrate and Direct Reduced Iron ("DRI"). The operation of the final piece of equipment, the hot briquetting machine, will occur during the next test run. While operating, the plant was inspected by officials from the Korean Ministry for the Environment and the Start Up Permit was issued earlier today. Under Korean regulations, until this permit is issued only limited quantities of Electric Arc Furnace Dust ("EAFD") are allowed to be delivered to the plant site and as a consequence only a limited period of testing has been possible. The issuance of the permit will enable the Company to start accepting regular deliveries of EAFD to the site.

While the process has yet to be optimized for full scale production, the initial results are very promising. The tests demonstrated zinc recovery in the range 87%-96% and that good quality zinc oxide concentrate could be recovered having a grade of between 55% and 63% zinc at or above the target level (58%) expected for the operation and with less than 0.2% iron indicating a low carry over of untreated EAFD. The metallic iron content of the DRI has typically been in the range of 75-88%, with our target for the operation being 85%. Further improvements in zinc concentrate quality and iron metallisation are expected as the plant's operating conditions are optimized.

The plant operated in line with expectations with good briquette strength and efficient evacuation of DRI from the furnace. Heat and zinc product recovery and other aspects of the gas handling system also worked as foreseen.

As foreseen, in the development plan, and due to the limited availability of EAFD the Rotary Hearth Furnace and gas handling system is being cooled, to allow a full inspection of the hearth, for modifications to the control system and equipment modifications, but production is expected to resume next week.

Commenting on the announcement, Andrew Woollett, ZincOx's Chairman, said "We are delighted with the results from this first operation which prove that the process works in line with our expectations. We are looking forward to optimizing the operating conditions and ramping up to full production over the next few months and at the same time preparing to press ahead with our expansion plans both in Korea and elsewhere".

For further information please contact:

 
ZincOx Resources plc                        Tel: [phone] 
                                             100 
Andrew Woollett, Executive Chairman 
 
Peel Hunt LLP (Nominated Adviser and Joint  Tel: [phone] 
 Broker)                                     8900 
Richard Kauffer 
 Daniel Harris 
finnCap Limited (Joint Broker)              Tel: [phone] 
 Matthew Robinson                            0500 
 Joanna Weaving 
Tavistock Communications                    Tel: [phone] 
                                             3150 
Lydia Eades 
 Simon Hudson 
 Paul Youens 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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