22 Dec 2011 08:23
22 December 2011
Bellzone Mining plc
("Bellzone" or the "Company")
Forécariah JV Progress Update
·; All mine equipment has arrived in Guinea and has successfully been transported to site
·; Mine site construction underway;
·; Dredging of the access channel is underway, with completion expected in February 2012
·; First shipment of port equipment arrived and unloaded in Conakry;
·; All marine fleet purchased and delivery in Guinea on track for Q1 2012;
·; Project remains on schedule to achieve production in Q1 2012.
Bellzone Mining plc (AIM:BZM) is pleased to provide a progress report on the Forécariah JV Project (the "JV") in the Republic of Guinea, West Africa, which remains on schedule to commence production of iron ore in Q1 of 2012.
Mine and Plant Development
All purchased equipment has arrived in Guinea and has been offloaded and cleared through to site. This includes:
·; The crushing and screening plant
·; The road haulage truck fleet
·; Mining haulage fleet
·; Earthmoving equipment
·; Drilling and blasting equipment
Bellzone is also pleased to announce the commencement of mine site construction including;
·; Accommodation camp - arrived on 9 December 2011 and now at site and under construction
·; HV and LV workshops (with tools and equipment) - arrived on 9 December 2011 and now at site and under construction
·; Health and emergency clinics, including ambulance - arrived on 9 December 2011 and now at site
·; Catering contract issued and contractor on site.
Marine Operations
Dredging of the barge access channel has commenced with completion expected in February 2012.
Panamax
Delivery of the Panamax, to serve as a floating stockpile and transhipping vessel, the MV Magnetic Isle (to be renamed FGM Iron), was taken on 15 December 2011. The vessel is currently in Japan and will mobilise to Guinea waters for delivery in the next quarter.
Cape Vessel Handling Tugs
Delivery of the tugs, FGM Honour and FGM Honesty, was completed on 9 December 2011 in Singapore. The vessels are planned to arrive in Guinea with the Panamax, FGM Iron.
Pilot Vessel
The Pilot vessel, FGM Integrity, has been sourced and purchase completed. Mobilisation will be with
FGM Iron, as it will be carried on its deck.
Transshipping Contract
The contract for transhipping service has been awarded. The contract covers the supply and operation of all vessels and equipment from port outload to export vessel loading. The three barges and 2 tugs, complete with stevedoring equipment will depart Singapore in December, arriving in Guinea by February 2012.
Marine Management Contract
Global International Transportation has been awarded the contract for marine operations management covering crew, maintenance, insurance and operations of all marine vessels owned by the joint venture company, Forécariah Holdings Pte Ltd.
Road Development
The 76km road route comprises 20km of new road required to bypass several small villages, and 56 km of existing road. The existing road upgrade and new road construction to support the bulk ore road trains is being completed in five sections, with various aspects of the work awarded to four main contractors. The road development is on schedule to permit haulage of ore in February 2012.
Progress to date:
·; Entire length of the road has been cleared and grubbed;
·; Layering has started in several sections;
Konta Port Development
Approval for dredging to commence has been received and subsequently commenced. In addition, the construction barge has arrived on site and construction of the pilings for the port facility is imminent.
The development of the port remains on schedule to achieve first shipment of product from Forécariah in Q1 2012.
Resource Development
A 30,000m RC drilling programme at Yomboyeli west is in progress, with holes intersecting surface oxide up to 12m thick and zones of hematite schists at depth. Diamond drilling at Moussaya has intersected multiple zones of magnetite. Results from these programmes are expected to add to the Company's current internal resource estimate of 146mt of iron oxide.
Mining Licence
As previously announced, Bellzone has completed the Social Economic Impact Assessment, Environmental Impact Assessment studies and has submitted the project feasibility studies to the Government. The Company continues to work with the Government to ensure approvals are received within the project plan.
The tonnage estimation information disclosed in this announcement has been reviewed by Bernhard Neehoff BSc. Post Grad Dip Sc.; a member of the Australasian Institute of Mining and Metallurgy. He has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken, to qualify as a Competent Person for the purposes of this announcement.
Enquiries:
Bellzone Mining plc
Terry Larkan/Graham Fyfe +61 (0) 8 9420 8900
Canaccord Genuity Limited
Nominated Adviser and Joint Broker to Bellzone +44 (0)20 7050 6500
Andrew Chubb/Tarica Mpinga
Renaissance Capital Limited
Joint Broker to Bellzone +44 (0)20 7367 7777
Jeremy Wrathall
Tavistock (UK)
Jos Simson/Paul Youens +44 (0)20 7920 3150 / +44 (0)7899 870 450
PPR (Australia)
David Ikin
+61 (0) 8 9388 0944 / +61 (0) 408 438 772
About Bellzone Mining Plc
Bellzone Mining plc is an exploration and resource development company with iron ore and nickel / copper permits in the Republic of Guinea, West Africa.
Kalia Mine
The Company's flagship project, the Kalia Mine Project, is planned to commence production in 2014 and be producing iron ore and iron ore concentrate at a rate of 50 million tonnes per annum in 2018. The Kalia Mine Project has a 6.16 billion tonnes magnetite JORC resource and an oxide JORC resource of 193 million tonnes. A Supergene BIF JORC resource of 92.5 million tonnes at 36.5% Fe has been delineated and shows the potential to upgrade to produce 37 million tonnes of 63% Fe material. The oxide and Supergene BIF resources have been established from just 10.5% of the 55km2 of the mapped surface oxides on the Kalia permit. Drilling results and internal estimates indicate that the Kalia Mine Project has the potential to host more than 10 billion tonnes of magnetite and 2 billion tonnes of oxide.
CIF - Project, Financing & Infrastructure Partner
Bellzone has a Definitive Agreement ("Agreement") with China International Fund Limited ("CIF"). The Agreement gives CIF right of first refusal to purchase the Kalia Mine Project's production at market rates and CIF commits to providing Bellzone commercially related funding for the development of the Kalia Mine Project.
The Agreement contains CIF's commitment to fund and build commercially operated rail and port infrastructure that will enable Bellzone to export production from the Kalia Mine Project. The infrastructure is being developed by Kalia Horizon Minerals Pte Limited, an entity that is 90% owned by CIF with Bellzone having a 10% carried interest. The Agreement provides for Bellzone to be the lowest cost user with permanent priority access.
Forécariah JV
Bellzone and CIF also have fully funded a joint venture to undertake the accelerated exploration and development programme at CIF's Forécariah iron permits that lie between 30 and 80 kilometres from the Guinea coast. Production is scheduled to start in Q1 2012, based on an internal resource estimate of 146 million tonnes of oxide, with an initial production rate of 3-4 mtpa of oxide ore, ramping to a rate of 10 mtpa in 2013.
Other activities
Bellzone has completed a mapping and surface sampling programme identifying highly prospective targets at its Sadeka Nickel/Copper Project. The VTEM aerial survey has been completed and highly prospective targets have been identified and will form the basis of the 2012 drilling programme due to commence in December 2011.
Bellzone has acquired the rights to buy 70% of Compagnie Miniere de L'Ouest Africain SA, incorporated and holding tenements in Mali. The company is undertaking geological studies on the tenements which are prospective for iron ore before making an investment decision.
About China Sonangol and China International Fund Limited ("CS Group")
CS Group is headquartered in Hong Kong Special Administrative Region of China, and has investment footprints in 3 continents and more than 20 countries.
The primary activities of CS Group is in oil, gas and mineral exploration and production, commodities trading and is also globally active in real estate and infrastructure development, where in particular, through China International Fund, it has participated in the rehabilitation and development of new and existing transport infrastructure in Angola such as New Luanda International Airport, where it is envisioned to be a major airport hub West Africa. Additionally, on its railway experience, CIF rehabilitated almost 3,600 kilometres of railway in Angola. CIF has also constructed 3 logistics base in Angola where in total occupies 925,000m2, as the logistical backbone to support its infrastructure and industrial implementation and development program, consisting cement and brick production plants, sand and stone quarries, as well as production of industrial materials such as steel sheets and plastic pipes.
With the strengths of its experience in large scale infrastructure development in Africa, CS group is in the position to accelerate the iron ore exploration and production with its Joint Venture partner Bellzone Mining PLC.
CS Group has a vision for Africa. This vision is, through South-South cooperation, where in partnership with private industry and with the government, CS Group will develop public transport infrastructure such as road, rail, seaports and airports to improve connectivity and accessibility, as well as public utilities, agriculture, aqua culture, public housing, construction materials, mining and oil and gas projects, where its commercial objectives are aligned with the needs of countries to develop the economy and improve, ultimately, the living standards of the people.