22 May 2012 08:12
22 May 2012
Bellzone Mining plc
("Bellzone" or the "Company")
Forécariah Mining Authorised
·; Authorisation granted to commence production and export
·; Plant commissioned and production commenced
·; Updated resource statement expected in Q3 2012
Bellzone Mining plc (AIM: BZM) is pleased to announce approval by the Government of Guinea to commence commercial production from the Forécariah operations in the Republic of Guinea, West Africa.
The authorisation was granted on 21 May 2012 by the Minister of Mines:" On the recommendation of the Interdepartmental Committee, I have the honour of allowing you to start the Yomboyeli [Forécariah] iron ore operations program". Operations will now move from wet commissioning to commercial production.
The intention is to mine and export the initial 2mt of high grade material identified by internal resource modelling during the first year of operations with the aim of achieving the design capacity of 4mtpa by year end. Post the initial 2mt of high grade material the low grade oxide will be upgraded to produce a +58% Fe product. Off-take agreement negotiations are underway.
The authorisation imposes certain obligations related to the current and future infrastructure requirements of the project. The State requires:
·; Construction of the public road that runs parallel to the haul must be completed within three months;
·; A study for rail transport of the production is to be completed by June 2013 and construction of the rail system to commence before the end of 2013; and
·; A bridge to be designed and constructed at the point where the haul road intersects the National Road. This work must be done in consultation with and to the standards required by the Department of Public Works and Transport as well as the Department of Mines and Geology.
In addition to the works aspects, the State requires certain administrative actions:
·; Formal explanation of the legal structures between the licence holder and Bellzone;
·; Relinquishing of areas not included in the mining area with 30 days;
·; Submission of a plan for the recruitment and training of local staff to occur with 30 days; and
·; Submit the complementary environmental study to ensure compliance with international standards.
Nik Zuks, Chief Executive Officer of Bellzone, commented: "Approval for Forécariah is a landmark event for Guinea and the Joint Venture partners. The ability to bring a greenfield asset into production, build a trans-shipping port and haulage road in under 15 months is a significant achievement. The belief, focus, dedication and combined will of the people of Forécariah, the Government of Guinea and the JV partners have delivered Guinea's first commercial iron ore production facility."
"The JV will continue to grow the resources and its production capacity as an operating entity. Bellzone now has a significant interest in an operating entity combined with a globally significant resource under development at our flagship Kalia Iron Mine."
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 and employed as Bellzone's Exploration Manager. 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 qualified 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 7523 8000
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 a publicly listed company on the London Stock Exchange and was admitted to the Alternative Investment Market (AIM: BZM) on 1st April 2010. Bellzone Mining plc ("Bellzone" or "the Company") is an exploration and resource development company with iron ore and nickel / copper permits in the Republic of Guinea, West Africa.Kalia MineThe Company's flagship project, the Kalia Mine Project, is planned to commence production in 2015 and be producing iron ore and iron ore concentrate at a rate of 50 million tonnes per annum. The Kalia Mine Project has 1.46 billion tonnes of contained iron in JORC resources in 6.16 billion tonnes of magnetite, 193 million tonnes of oxide and 92.5 million tonnes of supergene BIF. 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 while the magnetite has been established over 7km of the 19km Kalia I strike. Drilling results and internal estimates indicate that the Kalia Mine Project has the potential to host more than 10 billion tonnes of magnetite.Forécariah JVBellzone and CIF 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. The Forécariah permits are held in a CIF subsidiary, Guinea Development Corporation ("GDC") and will be transferred to the JV operations company, Forécariah Guinea Mining SA as per the terms of the definitive and JV shareholder agreements. Commissioning production commenced on schedule Q1 2012 and production will be at an initial rate of 3-4 mtpa.Other activitiesBellzone has completed a mapping and surface sampling programme identifying highly prospective targets at its Sadeka Nickel/Copper Project. A VTEM aerial survey has been completed and prospective targets have been identified and a drilling programme has commenced with initial results expected Q4 2012.
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.