Exploration company, Ennex, has signed a joint venture agreement for the exploration and development of a zinc prospect in Morocco. It will have an 80 per cent interest while its partner, Bureau de Recherches et de Participations Minieres (BRPM), Morocco's State company for mineral development, will have the other 20 per cent.
The initial agreement involves a pre-feasibility study on the building of a mine and plant to process ore from zinc oxide deposits located in the Middle and High Atlas regions of central Morocco. The study will cost around $200,000 and represents a diversification for the company, according to Ennex's managing director, Mr Christain Schaffalitzky.
The deposits produced over one million tonnes of zinc from 10 mines over a 50 year period up to the 1960's. They have not been worked since. The planned study, beginning in May, will involve geology, appraisal of mining methods, and an assessment of the broad economics of a zinc plant.
The joint venture grouping, Ennex-BRPM, has applied for 53 exploration licences totalling 848 sq kms. Ennex said they cover areas which host structures containing old mines, known lenses, unexplored or underdeveloped structures with high grade zinc oxide mineralisation. Ennex raised £2.75 million earlier this year through the early exercise of 10 million warrants at 27.5p each. The funds were earmarked for ongoing exploration and project evaluations.
