("Teknomining" or "the Company")
Award of Iron Ore Extraction Contract
The Company is pleased to announce that it has concluded an agreement with Asa Sondaj Insaat Ltd Sti for
the supply of an All-in Mobilization, Equipment Supply, Supervisory, Operational, Security Personnel and
Ancillary Services Contract to extract Iron Ore from its Operation Licence Number 200800729 in the
Hanza/Kandal region of Kulp, Diyarbakir, Turkey. This contract will be managed by the company's wholly
owned subsidiary Teknomining Madencilik Insaat Ltd Sti. To ensure full flexibility for Teknomining the
duration of this agreement is at the discretion of the company.
As previously announced the Company completed a Geophysical Ground Magnetic Survey ("the Survey") in June
2010 over approximately 80% of our operations area licence number 200800729 and in November 2010 also
completed a Geophysical Ground Magnetic Survey and limited Induced Polarisation Survey ("the Survey") over
the remaining approximately 20% of this licence. The surveys confirmed the presence of strong positive
mineralisation anomalies with significant potential reserves of Iron Ore. Previous grab samples taken from
this area, independently analysed by OMAC laboratories indicated high grade Magnetite outcrops with up to
65% Iron Ore and outcrops with high grades of other mineralization to be present in this area.
Key points regarding this announcement
1) Asa Sondaj Insaat Ltd Sti is a specialist company founded in 1994, its main areas of expertise are
- Extraction of base metals and stone, focusing mainly on Iron Ore, Copper, Asphalt and Marble.
- Extraction using both Surface (open-pit/strip) mining methods and Sub-surface methods using
tunnels/shafts to reach and extract the ore body.
- Road Tunnel and Dam construction.
- Asa Sondaj Insaat Ltd Sti has successfully completed several projects in the Kulp region.
2) Overburden and Iron Ore extraction is based on agreed Turkish Lira price per Metric Tonne.
3) The Contractor has supplied the necessary Bank References and Trade references thereby ensuring
its access to sufficient finances and equipment to undertake this assignment.
4) The Contractor's area of operation is within the coordinates of the Operation licence number
200800729 as approved by the Ministry of Energy and Natural Resources access number 3161073 dated 16th
5) The Contractor will comply with all Environmental Regulations applying to the region.
6) After initial transportation and set up time, which is scheduled to complete in the second week of
August, a minimum estimated extraction rate of 20,000 Tonnes of Iron Ore per month delivered to the
company's stock area is envisaged. Subject to the quality and quantity of grade extracted, and to
prevailing market prices, and to general economic conditions this estimated extraction rate could
potentially yield surplus revenue to the Company of up to Euro 300,000 per month. Surplus revenues arising
from this agreement are anticipated to commence in October of this year.
7) The Contractor is responsible for obtaining the necessary explosive licences for extraction as
required by the relevant authorities.
8) The Contractor has no legal rights against the Company's Operating Licence under any
9) All employee and plant operating costs are to be borne by the Contractor.
Michael Holden, CEO of Teknomining, commented:
"We highlighted at our 2011 AGM that an Iron Ore extraction programme was scheduled to commence mid 2012
subject to legal agreement. We are therefore delighted to announce our association with Asa Sondaj Insaat
Ltd Sti given their vast base metal extraction experience in this region.
Given that this extraction agreement is limited within specified predetermined areas of our Operating
Licence Number 200800729 it gives the Company additional opportunities for further direct, royalty and
joint venture agreements without compromising legal ownership of our Licence.
Expected income derived from our Iron Ore extraction will enable further exploration and exploitation of
our Two Operation Licence and Three Exploration Licence areas"
The directors of the issuer accept responsibility for this announcement.
Michael Holden, Managing Director
Mob. Ireland: +353 87 249 10 22
Mob. Turkey: +90 534 295 82 61
LHM Casey McGrath
Con Casey, Corporate Adviser
Phone: +353 1 495 9200
Teknomining Plc is engaged in the investigation, exploration, extraction, processing and marketing of
industrial and metallic minerals such as copper, iron ore, nickel, cobalt, gold, aluminium and chromium
The Company, through its wholly owned Turkish subsidiary, had initially secured two exploration licences
over land areas in the province of Diyarbakir, Eastern Anatolia, Turkey covering an area of c.10.9km.sq and
currently has upgraded these to two full Operation Licences. These licences
grant the Company certain rights to explore for and exploit "4th Group Minerals" as defined under Turkish
The Company announced on 23 May 2011 that through its wholly owned Turkish subsidiary it had been awarded
full rights to three additional Exploration Licences covering an area of c.54.07km sq.(5,407 hectares)
taking the total number of licences under management to five - with two Operation Licences and three
Exploration Licences covering a total area of 64.97 km sq. (6497 hectares).
To date the Company has undertaken five major Geophysical Ground Magnetic, Resistivity and Induced
Polarisation (IP) Surveys which have shown the presence of strong positive anomalies indicative of
magnetite's with significant potential reserves in excess of 25 million tonnes of high grade iron ore.
The Resistivity and IP Surveys have shown the presence of strong positive anomalies. Four examples were
given which indicate massive sulphide and silicated sulphide anomalies. Initial test drilling has indicated
the presence of Nickel, Copper, Cobalt and other metallic minerals.
The latest October 2011 Kulp 200806366 licence Deep IP/Resistivity and Ground Magnetic Report indicates the
presence of a possible Porphyry Anomaly with an estimated size of 48 million M3.
The latest October 2011 Kulp 200800729 licence Deep IP/Resistivity and Ground Magnetic Report indicates the
presence of a possible Quartz Porphyry and or intrusive Anomalies containing possible Sulphide
mineralization with an estimated size of 604 million M3.
The Groups short term strategy and work programme is to complete further exploration and test drilling to
confirm the location and level of reserves initially in its two Operational Licence areas.