On Wednesday, Firering Strategic Minerals PLC announced that commissioning has begun at the lime plant in Zambia owned by Limeco Resources Ltd, alongside finalizing design work for the lime kilns at the site.
The Abidjan, Ivory Coast-based exploration company, which is developing a mineral assets portfolio in the Ivory Coast, said it successfully commissioned a crushing system to produce aggregates.
This project includes a two-stage crushing circuit with an installed primary throughput of 500 tonnes per hour of limestone, while the crushing system is modified to produce aggregate to enhance cash flow during kiln renovations.
It is expected to ramp up aggregate production during the coming months with first aggregate sales expected “shortly”, while an estimated stockpile of over 250,000 tonnes of waste rock is available for initial production of aggregate.
Firering Strategic pointed out that the aggregates are mainly used in the construction industry to support foundations, provide drainage, and produce concrete and asphalt.
The company also noted a previous announcement that it has the option to acquire up to 28% of Limeco, which is expected to be profitable and deliver cash flow within 12-24 months.
They also announced finalizing the design work for the modification and commissioning of all eight lime kilns at the Limeco plant, with its technical team assisting the local technical team with upgrade design.
Commissioning of the eight kilns is presumed to commence gradually, Firering Strategic mentioned, with the first two kilns expected to be commissioned during the fourth quarter of 2023.
Firering Strategic noted an estimated limestone stockpile of over 150,000 tonnes available for initial production of quicklime, alongside reopening the existing limestone quarry with an estimated in-situ resource of 73.7 megatonnes of calcium carbonate at 95.3%.
Discussions for quicklime offtake by major copper producers are “advancing”, Firering Strategic added.
“We are excited to announce the successful commissioning of the crushing system that has produced its first aggregate by crushing waste from the waste stockpile at Limeco. Limeco is now in the process of ramping up this aggregate production, which will enhance its cashflow during the kiln modifications and plant commissioning,” said Firering Strategic Chief Executive Officer Yuval Cohen.
“Firering’s decision to enter into the option agreement with Limeco Resources was led by the opportunity to provide our shareholders with exposure to a project that can be brought into production relatively quickly, capable of delivering cash flow in a relatively short space of time. We will continue to update shareholders on the progress made on-site as we work with our partners to advance this quality project to production.”
Shares in Firering Strategic were up 4.1% to 7.60 pence each in London on Wednesday morning.