Mining exploration company Teal says it has started a pre-feasibility study for a new gold mining operation at its wholly-owned Otjikoto Gold Project in Namibia.

Rick Menell, Teal’s president and CEO said: “Teal has completed an assessment study related to the viability of a mining operation at Otjikoto, which has a current resource of 1.3 million ounces of gold. The positive conclusion of this study has motivated us to start immediately with a pre-feasibility study of the mineral resource.”

Approximately 6400 metres of infill drilling has been completed as part of the initial phase of the pre-feasibility resource upgrade estimation, which is being finalised.

Test-work underway

The results of these phases of drilling will be geologically and geo-statistically modelled and are designed to determine indicated and measured resources.

An environmental assessment study is underway which will include flora and fauna, water resource management, meteorological data collection and social impact assessments. A baseline study was also completed by Teal prior to the first resource estimation drilling.

Teal has drilled large diameter borehole cores for metallurgical test-work, which is underway at Mintek in South Africa. Additional drilling, to obtain more samples for test-work, is also in progress.

Bankable study

The test-work program has been designed to enhance and further confirm previous results. This phase of metallurgical study will optimise the process options, specifically related to the pre-milling concentration of the mineralisation.

Current results from test-work on the pre-milling concentration of the mineralisation indicate potential economic benefits to the project by the reduction of capital and working costs.

“A positive result from the pre-feasibility study would initiate, in the third quarter of 2007, the commencement of a bankable feasibility study,” Mennell added.

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