Coziron to start lead exports from West Sumatra

Base metals explorer Coziron Resources Ltd has announced that its proposed joint venture partner PT GALIAN ENDAPAN BUANA has been awarded a lead export licence by the West Sumatra Government.

The award of the export licence, effective February 11, will provide Perth-based Coziron with the final authorisation required to commence exports of lead ore from Padang port.

Coziron executive director Sai Kwok Miu said due diligence was still ongoing, but the one significant condition precedent, being the granting of the export licence, had now been met.

"Our preliminary discussions with potential off-take partners have resulted in us finalising a preliminary sales contract with one of China's largest enterprises," he said.

"Under the sales contract, the Chinese company has agreed to acquire Coziron's first shipment of 1,000 tonnes of high grade lead ore, and negotiating a two year contract for 2,000 tons per month of this lead ore."

This first shipment of lead ore is expected to leave Padang port in late March.

As previously announced, Coziron's new lead trading business will acquire lead ore from six operating lead mines in West Sumatra.

Coziron will store and test the lead ore at a storage facility leased by the Company, strategically located only 6 kilometres from the port of Padang, before selling it in the international market.

Coziron plans to initially target lead exports of 1,000 tonnes per month commencing in late March 2008.

The company will also continue exploration of the Solok Selatan lead project in West Sumatra, where it intends to conduct a preliminary soil sampling and drilling campaign on the project in the first half of 2008.