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Kastan Mining Limited’s mining license applications have been approved by the Honorable William Ngeleja, Minister, Ministry of Energy and Minerals, covering approximately 70 square kilometres in the Kilosa District of Tanzania, an area rich in copper as well as gold, silver and other minerals.
Pre-feasibility and feasibility studies have indicated significant commercial hard rock deposits of copper, gold and silver. The Company’s geological team is conducting a stream sediment study to assess the gold recovery potential of a 3.8 million metric ton alluvial deposit. Additional feasibility studies and exploration efforts are planned to further establish and increase mineral reserve estimates as well as the life of the mining operation. Kastan expects to begin mining and processing in late 2010 after Kastan Construction, the Company’s construction subsidiary, improves a 20 kilometre section of road to the initial mining site.
Kastan's Chairman, Yun Ho Cho, commented, "The mining license for Kilosa is an important milestone for our business plan and the key driver of our revenue and earnings growth in the coming years."
Kastan's CEO, John Tate, commented, "The Kilosa license approval represents the culmination of an extensive and thorough review conducted by the Ministry of Energy and Minerals. We appreciate the thoroughness and professionalism displayed by the Ministry throughout the process as Ministry personnel carefully reviewed every aspect of our application to confirm all required compliance. Their focus on positive long term outcomes for all stakeholders in the project bodes well for the fair and balanced future development of mineral resources in Tanzania.”
Kastan's Executive Vice President-Corporate Strategy, George Gaines commented, "We may elect to finance the Kilosa project from existing reserves as well as cash flow from our other mining operations. We also are in active discussions with potential financial and strategic partners to accelerate the pace and increase the scope of the mining plan.”