Mining at the company’s Lupoto prospect, which forms part of Teal’s Kasonta-Lupoto Mines copper-cobalt project, started on May 15, 2007. At the time of the announcement, the company expected mining to achieve a rate of 70,000 m3 per month, which would provide more than 20,000 mt/y of concentrate. These targets have been revised and monthly planned production is now building-up to 110,000 m3, producing 40,000 mt of mineralized material per month. From this, 3,200 mt per month of concentrate will be produced grading between 20% and 25% copper, containing approximately 10,000 mt of copper per year.

Teal Metals (DRC) s.p.r.l. will purchase all the concentrates from Kalumines and feed its furnace at a rate of 1,800 mt per month. This furnace, which is in the process of commissioning, has a capacity to produce approximately 5,000 mt/y of “black copper” ingots containing 85% to 95% copper.

Surplus concentrates—some 1,400 mt per month—will be sold to various other smelter operators in the DRC, in particular, to Société Miniere du Katanga s.p.r.l. (Somika) with whom Teal Metals has formed a joint venture to process the material at Somika's facilities until December 2007. Teal Metals will contribute the concentrate, while Somika will contribute all costs of operation, and profits will be shared on an equal basis.

Teal said that a feasibility study on a larger open-pit mining operation at Lupoto, together with a dedicated processing facility, is in progress and is scheduled for completion after verification and in-fill resource drilling, as well as the metallurgical test-work, has been concluded.

Technical studies of the Konkola North Copper Project feasibility study, based on an operation to exploit the South and East Limb areas of the ore body, have confirmed the practicality of utilizing the existing shaft to gain rapid access to the ore body and mining first in the South Limb area, followed by the East Limb. The Konkola North mine is forecast to produce 1,250,000 mt/y of run-of-mine ore, predominantly using the sub-level open stoping as well as room-and-pillar mining methods, for an expected build-up to an average production over the 16-year life of mine of 25,000 mt of contained copper per year. The life of mine production contained in the study is forecast at 17.9 million mt of ore grading 2.16% copper. Teal intends to assess the viability of a dedicated processing facility for Konkola North and this will be analyzed as a separate project following the completion and approval of the current study, which is expected following the conclusion of the remaining aspects to take this study to a bankable level.

Teal’s board of directors approved an expenditure of $1.5 million for the Konkola North project. These funds will be used to secure long lead items, such as electrical power for the mine winder system, upgrading of the mine power supply to the mine, and the detailed design of the steelwork sections in the shaft that requires replacement. The mining contractor will also be appointed and underground rehabilitation work will continue, which will allow mining to commence as soon as the mine winders have been installed.