Proceso ZincexWednesday, May 25, 2005Oxide Pilot Plant, Memorandum of Understanding with Tecnicas ReunidasUnion Resources Limited (UCL) and its Iranian operating company Mehdiabad Zinc Company (MZC) have signed aMemorandum of Understanding with Tecnicas Reunidas, S.A. (TR) of Spain for the purpose of using TRs Modified ZincexTMProcess for the Oxide Plant. Under the MOU, TR will supply several work packages, such as carrying out pilot plant studiesand performing a techno-economic package that will in effect design the Oxide Plant at the Mehdiabad Zinc Project in Iran.UCL is conducting a Bankable Feasibility Study (BFS) on the oxide/sulphide zinc deposit at Mehdiabad in central Iran.The study includes the planned production of 160,000 tpa of zinc metal from the Oxide Plant. The life of the Oxide Plant islikely to be in excess of 20 years. The ore will be sourced from the upper third of the Mehdiabad Deposit and possibly laterfrom other zinc deposits in the region.Under the MOU, the Mehdiabad Project will use TRs Modified Zincex TM Process, subject to a series of bench and pilot planttests, with the aim of confirming the suitability of the ore to be treated. The pilot plant test will involve the use of 14 tons of oresourced from the Mehdiabad deposit trial mining that are already in transit to Spain.In addition TR will carry out a series of variability tests from a wide range of drill core samples, from different parts of the depositto determine the representative response to the TR technology. In this way the process design and the basic engineering will beadapted to avoid any production bottleneck during expected Oxide Plant life.The Zincex Process involves the use of solvent extraction to purify the leachate after the leaching process is completed.While the technology is relatively new, TR has successfully applied it to the Skorpion oxide zinc project in Namibia in SouthernAfrica to produce 150,000 tpa of zinc metal. The Skorpion plant, which produced the first zinc plate on 2 May 2003, is currentlytrouble free, operating at nominal capacity and producing SHG zinc.TR has conducted some initial laboratory scale testwork and will now conduct the variability testwork program before proceedingwith the pilot plant testwork as part of the overall bankable studying collaboration with consulting engineers, Aker Kvaerner.The pilot plant work is scheduled over a 15 week duration.It is intended to enter into a license agreement with TR for the use of the technology with the use of certain propriety equipmentsupported by process and performance guarantees.