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Earthstone Metals Group announced successful business development in its operation in Africa. Since last December our local endeavor experienced vigorous progress in Zambia. As the new initiative, we have acquired exclusive irrevocable mining rights for three manganese concessions in Mansa, Luapula province. Africa and Middle East region dominate in manganese ore production. Though South Africa is well-known for its manganese export, Earthstone feels that Zambia still has untapped opportunity in development of this mineral and our Company may contribute with its effort.

 

Luapula province is an excellent place for investors with its huge copper, manganese, cobalt, iron ore and many other mineral deposits that are relatively unexploited. Since last December, Earthstone is dynamically pursuing its expansion in this African state, and diversification into manganese business is only natural. The new concessions are located within 60 km radius from Mansa Town, the 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). The Company has chalked out ambitious exploration program for conducting Geophysical

Survey followed by shallow diamond drilling to delineate the various ore bodies within the concession areas. Based upon the available exploration data, the company will commence semi-mechanized mining operation by April 2010 with production target of 10,000 Tons/month in the initial phase; that will be enhanced to 30,000 Tons/month after 5-6 months. With ongoing more and more acquisition of Manganese Ore concessions and completion of detailed exploration work, the production will ramp up to 1,000,000 Tons/year within three years.

 

Mr. Raju Lalchandani, Managing Director, Earthstone Resources (Zambia) Ltd. comments: "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."

 

Earthstone business expansion in Luapula Province also serves distinguished purpose of alleviation poverty among the people in the area. While the Company develops its business, it is striving to contribute to enhancing of sustainable development of the province. (Sourced from Press Release)