27 Feb 2012 07:00
27 February 2012
Bellzone Mining plc
("Bellzone" or "the Company")
Forécariah JV Progress Update
·; Blast permits received
·; Commissioning of mine and process plant equipment completed
·; Harbour tugs and Transhipping fleet en route to Guinea
·; Panamax conveyor modifications nearing completion
·; Technical aspects of the project approved by the commission of Department of Mines and Geology ("the DMG"). Final permits to formally start mining and export product are at an advanced stage
·; Project remains on schedule to begin production by end Q1 2012
Bellzone Mining plc (AIM:BZM) is pleased to provide a progress update on the Forécariah JV Project ("the JV") in the Republic of Guinea, West Africa, which remains on schedule to begin production and stockpiling of iron ore by end Q1 2012.
Mine and Plant Development
The JV is pleased to announce it has received approval from the Ministry of Mines and Geology to complete the first blast at Yomboyeli, ahead of formal mining approvals. This will allow processes and procedures to be tested and will provide material to start production and stockpiling.
The mining, processing and mine hauling equipment are all on site and have been commissioned. Final adjustments of the crushing and screening plant will commence with material from the first blast at Yomboyeli, scheduled for early March.
The first phase of the operations accommodation camp has been completed, with operations and exploration staff having taken up residence.
The process plant earthworks have been completed and civil works is underway with final plant installation expected to be completed in early March, ahead of the first blast.
Road Development
The first 10 units of the 20 unit haulage fleet have officially been handed over to Jamy Services, a Guinean company, who have been contracted to operate the fleet and manage the road safety and maintenance (road and equipment) of the haulage operation.
The haul road is accessible and suitable for haulage and will be formally opened for haulage traffic in early March when transport operations begin.
Konta Port Development
Development of the port remains on schedule to be able to commence loading and export of product in Q1 2012. Progress to date includes:
·; Barge mooring pilings are under construction and on schedule
·; Conveyor footings and civil work is in progress
·; The second CCCC shipment of equipment containing the office blocks and power plant has been cleared through customs and the goods are now on site
·; The last ship of fabricated items, including plate work, gantries and conveyors for the port has departed China and is expected in Guinea imminently
·; A temporary ore storage pad at the port has been completed
·; Road access to the port and storage pad has been completed
·; The construction camp has been installed and is operational
Marine Operations
Panamax, Harbour Tugs, Pilot Vessel
The harbour tugs are en-route to Guinea. The fitting of the conveyors to the Panamax was delayed due to technical complications, which have now been fully resolved, meaning that the vessels' expected time of arrival in Guinea is mid-April. The pilot vessel will be taken to Guinea on the Panamax as cargo.
Trans-shipping Contract
Cathay Offshore have mobilised operations from Singapore and their staff and equipment, including 3 barges and 2 tugs, will arrive in Guinea in March 2012. Cathay Offshore will supply and manage the operation of all vessels and equipment from port out-load to export vessel loading.
Dredging
Dredging of the channels and barge berths has been completed
Approvals and Permits
Government approvals have been granted to conduct the construction and installation activities at the port, road and mine site and to undertake the first blast at Yomboyeli.
The commission, established by the Department of Mines and Geology ("the DMG") has completed their review and approved the technical aspects of the project. Permits to formally start mining and export product are expected in the very near future.
Nik Zuks, Chief Executive Officer of Bellzone, commented: "With the Ministry of Mines and Geology approving the blast permit and technical aspects of the project, it is clear that the issue of the mining permit is now a procedural matter. The project will be in production and stockpiling material as planned and on schedule. Bellzone, with a cash balance of USD$145m, is in a strong position to manage our JV obligations and continue with our operations and development plans.
There is an air of excitement and expectation through the region as we move into the final stages of bringing Guinea's first commercial iron ore mine to fruition."
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
Rob Edwards
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 have committed to fully fund the initial production and infrastructure of a joint venture to undertake the accelerated exploration and development programme on Guinea Development Corporation 's ("GDC"), a subsidiary of CIF, 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 158 million tonnes of oxide, with an initial production rate of 3-4 mtpa.
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 programme, 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.