Wednesday 17 July, 2013

Operational Update

Agglomeration at Benkala has been performing in line with the Company's expectations.

However, in order to optimise performance and reliability, Frontier Mining has purchased all the necessary parts and equipment to install an additional agglomerator. This is currently being assembled.

The additional agglomerator will enable the Company to achieve higher quality agglomeration, while increasing throughput, by introducing an additional agglomeration step. At the same time, the expected assembly scheme will provide a reserve line for agglomerate production and will ensure stable operation of the crushing and agglomeration complex.

The Company is undertaking further studies to determine the optimum mix for robust agglomerate. The Company's technical staff, together with Adam Moroney, are undertaking agglomeration tests using several additives. As part of this study, Kazakhstan's VNIItsvetmet hydrometallurgical laboratory in Ust-Kamenogorsk is carrying out laboratory analysis and testwork using samples from Benkala.

Following his visit to VNIItsvetmet, Adam Moroney commented,

"My initial impression from studying technical reports from VNIItsvetmet was that the laboratory has good technical capabilities. This was further confirmed during my visit to Ust-Kamenogorsk while working on laboratory inspection and testwork planning with their Chief of Minerals Technology. I believe maintaining a working relationship with VNIItsvetmet will be beneficial for introducing improvements at Benkala and going forward for the Company".



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