Brinkley Mining agrees framework with CGEA for the development of the uranium mining in the DRC

Brinkley Mining has a signed an agreement with the DRC’s Commissariat General a l’Energie Atomique (CGEA) which sets out the basis and conditions on which Brinkley Mining and the CGEA will establish a joint venture company whose objective, inter alia, is to explore for, and exploit uraniferous deposits with particular emphasis on an initial five key areas which are prospective for uranium in the DRC. The five priority targets all have known uranium occurrences, and have been explored previously to various levels of development. Of note is the former Shinkolobwe mine which was discovered at the beginning of the century by Tanganyika Concession Ltd. Exploration was carried out from 1921 up to 1959 and consisted of approximately 39,000 metres of exploratory and mine development drilling. Mining for radium began in 1921 and continued until 1936. Total extraction during this period has been estimated at 26,433 t ore grading 10-65% uranium oxide. After WWII the main metal explored and mined until cessation in 1960 was uranium oxide. Production from 1944 to 1960 was approximately 65 Mlb of uranium oxide. The mining methods used were open pit from 1921 until 1944, and then underground until 1960.

Brinkley Mining and the CGEA have agreed to create a public limited liability company whose primary objective is the exploration, exploitation, treatment and marketing of radioactive and fissile materials and any substances associated with such minerals. Technical and financial assistance will be provided by Brinkley Mining to the CGEA for the control of radioactive mined products at the stages of production, treatment, storage and exploration.

The share capital of the new company, of an initial amount of $3 million will be held 75% by Brinkley Mining International and 25% by CGEA and the Congolese State. The Board of Directors of the company will have seven members, five of which will be proposed by Brinkley and two by CGEA. The chairmanship of the board of directors will be held by one of the directors proposed by CGEA; the vice-chairmanship and the function of Managing Director (Administrateur Delegue) will be held by directors proposed by Brinkley Mining.

CGEA undertakes to guarantee, as the case may be, to the company to be incorporated the right of preference over any exploration or mining perimeter for reserved substances and associated minerals which is proposed to CGEA or by CGEA for development. CGEA shall procure to the company to be incorporated any necessary approvals or permits required for the development of any exploration or mining perimeter containing reserved substances.

Brinkley Mining and the CGEA have identified that the following sites will be priority targets to be developed immediately: Shinkolobwe (including but not limited to the Old Mine, Carriere, Kasolo Principal and Kasolo Signal), Mindigi (including but not limited to Mindigi, Mirungwe and Kafumba Swambo), Kalongwe, Kasompi and Samboa. Other areas will be prioritized depending on the advancement of ground works.

Brinkley Mining will provide its assistance to CGEA in the area of control of radioactive mined products. The CGEA undertakes to guarantee to Brinkley Mining International the right to assist it in its mandate and its obligations of the control of radioactivity in the DRC.

Brinkley Mining has undertaken to provide assistance to CGEA and the Ministry for Scientific Research. The assistance to CGEA, for a maximum amount of $1,200,000, will be the refurbishment of the reactor for nuclear research, and the control panel, of TRIGA MARK II type of the Centre Regional d’Etudes Nucleaires de Kinshasa (C.E.R.N.-K.) in accordance with the Programme for Technical Co-operation between the International Atomic Energy Agency (IAEA) and the DRC. The assistance to the Ministry for Scientific Research, of a maximum amount of $500,000, will cover the improvement of its operations.

To date Brinkley Africa has undertaken an extensive desk top study and a technical team is in place to mobilize shortly. Initial work is expected to focus on the remodeling of all existing drill data to establish JORC compliant resource estimates and provide new drill targets. It is understood this could involve the re-evaluation of over 40,000 m of diamond drilling undertaken prior to 1981. This work will be based in Lubumbashi where an office has been established. The field work at Shinkolobwe and the other areas will focus on mapping, radiometric surveying and sampling of prospective lithologies along strike and adjacent to the Kundelungu Fault. It is intended to fast track the project to bankable feasibility study at the earliest opportunity.

Gerard Holden, Executive Chairman of Brinkley Mining: “”We are delighted that we have reached this critical milestone in the development of our partnership with the DRC. The uranium potential of the areas selected is excellent and the Shinkolobwe mine represents a great opportunity for Brinkley Mining to redevelop and rehabilitate what was one of the world’s most prolific uranium oxide producers.

“I am also excited to note that, with a view to accelerating the development of this important sector for the DRC economy, the administrative process related to the demarcation of the respective areas and the requisite issuance of Presidential Ordanances, applicable in the case of reserved substances, is already in process with the relevant authorities in the DRC.

“I should like to thank Minister Mushi Bonane Sylvanus for his tremendous assistance in getting to this point. We will get our technical team ready to start work on the ground as soon as feasible. The DRC contains hugely exciting potential uranium resources. We look forward to working closely with our partner to ensure that those resources are commercialized for the mutual benefit of all parties at the earliest opportunity as well as assisting the CGEA to meet its obligations under international treaties.”