MMS.L Regulatory News (MMS)

21 May 2007 07:00

Maghreb Minerals PLC21 May 2007 MAGHREB MINERALS PLC Drilling starts at Zriba - Guebli deposit Maghreb Minerals Plc ("Maghreb" or "the Company"), the AIM-quoted explorationcompany developing base metal and industrial mineral deposits in North Africa,announces the commencement of a 1,200m drilling programme on theZriba-Guebli permit. The drilling is being carried out by two rigs and theprogramme is expected to be completed in July 2007. The Zriba-Guebli permit covers the past producing Zriba mine and an extension ofthe mineralisation, named the Guebli deposit. The Zriba mine, a room and pillarmining operation, is reported by Tunisian authorities to have produced:35,000 - 40,000 tonnes per annum of fluorite, prior to closure, for a totalproduction of approximately 4 Million tonnes ("Mt") of ore, grading 25% fluorite(CaF2) and 1-2% Pb-Zn. The mine operated between 1967 and 1992, when it wasclosed due to the then low mineral prices. At recent fluorite prices of around US$235 per tonne, a production level of40,000 tonnes per annum would equate to annual revenues in the order of US$10million. Recent fluorite imports into Tunisia have been closer to the level ofUS$20 million per annum which allows scope for expanding production beyondhistoric levels to meet the domestic demand for fluorite. Acid grade fluoriteis used in the production of hydrofluoric acid (HF), which is an intermediatefor the production of aluminium fluoride and all chemicals that containfluorine. Aluminium fluoride is used in aluminium fluxes in the aluminiumindustry. HF is used in a variety of processes including the purification ofuranium. The Office Nationale des Mines ("O.N.M.") estimates the remaining mineralresources in the southern part of the Zriba mine and at Guebli to be of theorder of 4Mt, including 850,000t in reserves (Not to International ReportingStandards). Mineralisation is typically shallow with the potential for someproduction to be mined by open cut methods. Expressions of interest have already been received from parties interested inproviding development capital and product off-take as soon as a viable resourcehas been established on this permit. Gordon Riddler, Executive Chairman commented: "The Company's focus is on moving as rapidly as possible to pre-feasibility andproduction on this permit. With substantial resources already known to be inplace, as well as indications of project funding and product marketing, it is aparticularly interesting deposit. Drilling is a major component in evaluatingthe potential of the resource and I am pleased to have been able to deploy twodrilling rigs to the property and thereby accelerate the evaluation programme". The technical content of this press release has been reviewed by the ExecutiveChairman of Maghreb Minerals plc, Gordon Riddler, BSc, MBA, FIMMM, CEng, CSciwho has 40 years of experience in the mining sector and is a Fellow of theInstitute of Materials, Minerals and Mining, a recognised professionalassociation. ENQUIRIES: Maghreb Minerals Plc Tel: +44 (0) 20 7556 7038 Gordon Riddler, Executive Chairman Hanson Westhouse Limited Tel: +44 (0) 20 7601 6100 Tim Metcalfe / Anita Ghanekar Bankside Consultants Tel: +44 (0) 20 7367 8888 Michael Padley / Michael Spriggs This information is provided by RNS The company news service from the London Stock Exchange