Korean Recycling Plant Commissioning Update (0754B)

TIDMZOX

RNS Number : 0754B

ZincOx Resources PLC

11 April 2012

ZincOx Resources plc

("ZincOx" or the "Company")

Korean Recycling Plant Commissioning Update

ZincOx Resources plc (AIM: ZOX), which specialises in the low cost recovery of high grade zinc compounds from unconventional sources,announces that while steady progress is being made in the final commissioning of its wholly owned Korean Recycling Plant ("KRP"), this has been slower than anticipated and first production from the plant is now expected to take place in May.

Since the announcement of 2 April 2012, numerous small commissioning issues have been sorted out in the past week, but the completion of commissioning is being held back due to problems in the operation of the combustion system for the Rotary Hearth Furnace ("RHF"), that could have only come to light at this stage of the commissioning. The combustion system comprises forty gas burners set up in eight sets, with complex gas and air flow monitoring and control systems that involve several pieces of equipment. The design and installation of this equipment, and its delivery in full working order, is the responsibility of technology suppliers which also provide performance guarantees. In order to maintain these guarantees, both ZincOx and the project's main EPCM contractor must rely on the technology provider to take responsibility for the delivery of equipment.

After evaluation, problems in the first set of burners, which were tested by the equipment supplier, were traced to a new valve that was found to be broken. This is being repaired and equipment in the other sets of burners is now being tested. Over the past few days two sets of burners have been successfully fired and work will progress on the commissioning of the remaining sets over the coming weeks. When all the burners have been successfully fired up independently, a group test will be carried out. After the group test, additional final checks will be made on the computer controlled Burner Management System which includes 'fail safe' safety procedures, prior to first production.

Commenting on the announcement, Andrew Woollett, ZincOx's Chairman, said "We are disappointed to have to delay start up further, but it is not unusual for such unforeseen issues to arise when commissioning a project of this type. We are encouraged that the initial problems have now been identified and that the combustion system is being tested so that we can achieve a rapid and safe start up. We anticipate that production will be on track in May when I will update shareholders with further news."

For further information please contact:

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

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCSFDFUSFESEIL