Earthstone Acquires Zambia Manganese Concessions

Manganese Exploration To Begin In Luapula Province

Dubai-based Earthstone Metals Group, has acquired exclusive irrevocable mining rights for three manganese concessions in Zambia’s Luapula province.

Although South Africa is well-known for its manganese export, Earthstone feels that Zambia still has untapped opportunity in development of the mineral.

The new concessions are located within 60 km radius from Mansa Town, capital of Luapula province. Total combined area of the project exceeds 140,000 Hectares.

The grade of the ore is high (48 to 54% Mn) and the bulk of the ore consists of predominantly Psilomelane (MnO2) with occasional residual crystals of Hausmannite (Mn3O4) and Manganite (Mn2O3H2O). Earthstone has chalked out ambitious exploration program for conducting Geophysical Survey followed by shallow diamond drilling. Based upon the available exploration data, the company will commence semi-mechanized mining operation by April 2010 with a production target of 10,000 Tons/month that will be enhanced to 30,000 tons a month after 5-6 months. With further acquisitions of Manganese Ore concessions and the completion of detailed exploration work, production will ramp up to 1,000,000 tons a year within three years.

Commenting on the development, Raju Lalchandani, Managing Director, Earthstone Resources (Zambia) Ltd. said: "We find Zambia as an exceptionally investor-friendly country. Dollarisation of economy is a very intelligent scheme that is being promoted by the Government - and this is radically changing investor climate."