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Blackthorn Resources Limited (ASX: BTR) (the “Company” or “Blackthorn Resources”) provided the following information in relation to the Mumbwa exploration project in Zambia.
The Mumbwa prospecting licence held by BHP Billiton on behalf of the JV has been confirmed in writing by the Zambian Ministry of Mines and Minerals Development (“the Ministry”) as current and valid. This licence was previously renewed and confirmed as valid by the Ministry in February 2010. Drilling and other operations did not cease and are continuing as usual. Background The Company was informed early on 1 September 2010 by JV partner BHP Billiton that it had received a letter from the Director of the Geological Survey Department of the Ministry of Mines and Minerals Development in Zambia purporting to cancel the Mumbwa prospecting licence. The reason given in the letter for the cancellation related to the existence of an alleged military security zone in the area. No advance notice of this letter had been given to BHP Billiton or Blackthorn Resources. Following consultation with Blackthorn Resources, BHP Billiton appealed the notice of cancellation and their senior management held urgent meetings with the relevant Minister in an effort to confirm the validity of the licence and re-establish security of tenure. BHP Billiton has now received written notice from the Ministry reversing the decision of the Director and confirming the validity of the licence. Managing Director Scott Lowe said “Clearly this issue was of serious concern. However, by working closely with BHP Billiton and with the support and assistance of the Zambian Minister for Mines and Minerals Development, there has been a satisfactory outcome. We have confidence that our JV partner will continue to make security of tenure of primary importance” |
