ZCI - ZCI Limited - Failure of the ball mill pinion shaft at the Mowana Mine

ZCI - ZCI Limited - Failure of the ball mill pinion shaft at the Mowana Mine    
ZCI Limited                                                                     
(Bermudian registration number 661:1969                                         
(South African registration number 1970/000023/10)                              
JSE share code: ZCI   ISIN: BMG9887P1068                                        
Euronext share code: BMG9887P1068                                               
("ZCI")                                                                         
FAILURE OF THE BALL MILL PINION SHAFT AT THE MOWANA MINE                        
ZCI`s major subsidiary, African Copper Plc ("ACU" or the "Company") announces   
the failure of the Ball Mill pinion shaft at the Company`s Mowana Mine facility 
in Botswana on Sunday, 20 May 2012. The failure and resultant damage has        
rendered the Ball Mill inoperable until a replacement is installed and has      
resulted in the immediate cessation of the production of copper concentrates.   
Prior to the incident, the mill was running normally at 135tph. The pinion shaft
was due for replacement in early June 2012, with a replacement ordered ten      
months earlier. The new pinion shaft was due to be delivered on 5 June 2012 and 
management are currently investigating the possibility, with the supplier, for  
earlier delivery. Due to the long lead time for taking delivery of the pinion   
from the manufacturers, it is expected that the Mill will be out of operation   
for a minimum of 12 days. Management also intends to replace the Mill gearbox   
and liners during the replacement of the pinion.                                
All other mining activities, including drilling, load and haul, and ore         
transportation are expected to continue to plan. The crushing sections at the   
Mowana Mine facility will continue running with the aim of filling both the     
coarse and fine product stockpiles with the higher grade Thakadu ore, with a    
view to building the ore stockpiles in front of the Mill. This will allow the   
plant to run at a higher throughput once the Mill is repaired. Some contractors 
whose equipment has not been performing to expectation will, in the meantime, be
required to stop activities so that they can maintain their equipment in        
preparation for higher productivity when the Mill restarts.                     
A further announcement will be made in due course, once management can confirm a
restart date and quantify the financial effects of the incident. For further    
information please visit www.africancopper.com                                  
Bermuda                                                                         
22 May 2012                                                                     
Sponsor: Bridge Capital Advisors (Pty) Limited                                  
Date: 22/05/2012 15:00:02 Supplied by www.sharenet.co.za                     
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