6 Sep 2010 07:00
7:00am: 06 September 2010
Bellzone Mining plc
("Bellzone" or the "Company")
Increase and upgrade of Kalia Mine magnetite resource
·; 56.5% increase in total magnetite JORC resource to 3.74 billion tonnes ('bt')
·; Drilling delineates 670 million tonnes ('mt') in the Measured and Indicated categories
·; 33.3% increase in contained iron from 670mt to 858mt
·; Results indicate a marketable high quality concentrate is achievable through standard processing techniques
·; Resource was established over approximately 6km of the 19km Kalia I and 10km Kalia II strike
·; Exploration potential, within the 6km resource zone, holding an additional 75 - 250mt contained iron in magnetite bearing BIF+SCHIST
·; Resource supports a 60 year magnetite production life of mine
·; Oxide maiden JORC resource on track for Q4 2010
Bellzone Mining plc (AIM: BZM), the iron ore and nickel/copper exploration company developing the Kalia Mine in the Republic of Guinea, West Africa, is pleased to announce an upgrade and increase in the magnetite JORC resource from 2.4 billion tonnes to 3.74 billion tonnes on the central zone of the Kalia I deposit.
The updated resource follows an 18,500m drilling programme and 9,300m of core assays carried out along approximately 6km of Bellzone's 19km Kalia I strike and 10km Kalia II strike.
| Kalia Mineral Resource Estimate as at 23 August 2010 | |||
| JORC Resource Class | Magnetite | Billion | Fe% |
| Host Material | Tonnes2 | ||
| MEASURED | BIF | 0.27 | 27.21 |
| INDICATED | BIF | 0.40 | 28.02 |
| MEASURED + INDICATED | BIF | 0.67 | 27.69 |
| INFERRED | BIF | 2.38 | 25.34 |
| SUB - TOTAL BIF RESOURCE | BIF | 3.05 | 25.86 |
| INFERRED | SCHIST | 0.69 | 9.97 |
| TOTAL JORC RESOURCE | BIF + SCHIST | 3.74 | 22.93 |
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| EXPLORATION POTENTIAL | BIF + SCHIST | 0.50-1.00 | 15.00-25.00 |
Resource classification was based on a number of criteria, including grade interpolation parameters, geology continuity, drill core samples, survey and bulk density data, the drilling grid, Davis Tube Magnetite recovery test work and an updated preliminary Whittle optimisation assessment completed to determine project economics. Although on average a 2% reduction in grade has occurred in the measured and indicated zones from that reported in the 2.4bt Inferred magnetite JORC resource of 2009, CSA Global believe "that the current classification is appropriate for the definition tonnes, material type and potential feed stock for this style of magnetite beneficiation mining operations."
| Kalia Mineral Resource Estimate Concentrate Potential | ||||||
| Domain | Mass recovery % | Fe% | SiO2% | Al2O3% | P% | S% |
| BIF | 31.69 | 68.74 | 3.91 | 0.14 | 0.01 | 0.32 |
| Schist | 4.14 | 63.66 | 4.34 | 0.29 | 0.01 | 0.17 |
| Combined | 28.46 | 68.27 | 3.92 | 0.16 | 0.01 | 0.31 |
190 Davis Tube Results were completed on the BIF and schist domains to support the JORC estimate. All assay and metallurgical test work was undertaken by independent laboratories, Spectrolabs and ALS in Perth, Western Australia.
Nik Zuks, Managing Director of Bellzone Mining plc, commented: "This is another significant value adding milestone delivered on schedule. These results from the magnetite extension and upgrade clearly demonstrates this resource on Kalia I has more than sufficient iron ore to support the Company's current development plans for the next 60 years and clearly indicates the considerable potential for increasing production and mine life from other sections of the strike.
While Bellzone will continue to upgrade and extend the magnetite resources on Kalia I and our section of the Kalia II strike, our key focus over the next few months will be to establish and announce a maiden JORC resource for the surface oxide ore which is on track for Q4 2010.
The detailed agreement with China International Fund Limited ("CIF"), which provide for a fully funded infrastructure and an option to fund the Kalia Mine, the Presidential Decrees which lawfully secure the Kalia convention and exclusive infrastructure development rights, and a proven substantial JORC magnetite resource has hugely de-risked Bellzone's aspirations of building a 50mtpa iron ore operation in Guinea. I am confident that our project and management teams, along with our partner, CIF, will continue to deliver exceptional value to our shareholders."
The mineral resource information disclosed in this announcement has been reviewed by Malcolm Titley (MAusIMM), a Director and Principal Consultant of CSA Global. Malcolm is a member of the Australasian Institute of Mining and Metallurgy and is qualified as a Competent Person in terms of the "Australasian Code for Reporting of Exploration Results, Mineral resources and Ore Reserves (JORC Code 2004 Edition)). Malcolm has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Qualified Person for the purposes of this announcement.
Enquiries:
| Bellzone Mining plc Nik Zuks |
+61 439 420 893 |
| Canaccord Genuity Limited Nominated Adviser and Joint Broker to Bellzone Andrew Chubb/Tarica Mpinga |
+44 (0)20 7050 6500 |
| Renaissance Capital Limited Joint Broker to Bellzone Simon Matthews/Thomas Beattie |
+44 (0)20 7367 7777 |
| Conduit PR Jos Simson / Paul Youens |
+44 (0)20 7429 6603 +44 (0)7899 870 450 |
Bellzone Mining plc
Bellzone Mining plc is an iron-ore and nickel/ copper exploration and development company with assets in Guinea, West Africa. The Company's flagship project, the Kalia Mine is being developed in terms of an approved Convention supported by Presidential Decree. Kalia Mine has a magnetite JORC resource of 3.74 billion tonnes, located on the Kalia I prospect. These results support internal estimates that the 39km Kalia Prospect has the potential to host more than 13 billion tonnes of magnetite and 2.9 billion tonnes of oxide at surface. Exploration work continues to further define the potential at Kalia. The SEIA and EIA studies are underway to support the completion of the Bankable Feasibility Study.
Bellzone intends to develop a 50 million tonnes per annum ('mtpa') iron ore production through a two staged approach. First production is expected in 2014 at a rate of 20mtpa which is expected to fund the ramp up period to a rate of 50mtpa in 2018.
Bellzone announced the signing of an Infrastructure Accord with the Guinea Government on 17 June 2010. The Accord, secured by Presidential Decree, gives Bellzone the exclusive rights to study and develop the rail and port infrastructure required to support the Kalia Iron Project.
On 2 August 2010, Bellzone signed a definitive agreement with China International Fund ('CIF') which provides for the full financing of the rail and port infrastructure and the Kalia mine development in return for the rights to purchase 100% of the off-take at market price. In addition Bellzone and CIF will develop the highly prospective CIF Forecariah iron ore leases under a 50/50 joint venture arrangement. This will provide and opportunity to produce early cash flow for the Company.
Bellzone is listed on the AIM market of the London Stock Exchange under the ticker 'BZM'.
www.bellzone.com.au
GLOSSARY
| "Al2O3" | Aluminium Oxide |
| "BIF" | banded iron formation |
| "Fe" | Chemical symbol for Iron |
| "Indicated Mineral Resource" | as defined in the JORC Code, is that part of a Mineral Resource which has been sampled by drill holes, underground openings or other sampling procedures at locations that are too widely spaced to ensure continuity but close enough to give a reasonable indication of continuity and where geoscientific data are known with a reasonable degree of reliability. An Indicated Mineral Resource will be based on more data and therefore will be more reliable than an Inferred Mineral Resource estimate] |
| "Inferred Mineral Resource" | as defined in the JORC Code, is that part of a Mineral Resource for which the tonnage and grade and mineral content can be estimated with a low level of confidence. It is inferred from the geological evidence and has assumed but not verified geological and/or grade continuity. It is based on information gathered through the appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability |
| "JORC" | Joint Ore Reserve Committee - JORC. An internationally recognised method of classifying mineral resources |
| "Magnetite" | An oxide mineral (Fe3O4). The most common ferromagnetic mineral and principal ore |
| "Measured Mineral Resource" | defined in the JORC Code, as that part of a Measured Mineral Resource for which the resource has been intersected and tested by drill holes, underground openings or other sampling procedures at locations which are spaced closely enough to confirm continuity and where geoscientific data are reliably known. A Measured Mineral Resource estimate will be based on a substantial amount of reliable data, interpretation and evaluation which allows a clear determination to be made of the shapes, sizes, densities and grades |
| "Mineral Resource" | a concentration or occurrence of material of intrinsic economic interest in or on the earth's crust in such a form that there are reasonable prospects for the eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided into Inferred Mineral Resources, Indicated Mineral Resources and Measured Mineral Resources |
| "Oxide" | ore containing oxides of iron, chiefly haematite, goethite and magnetite |
| "P" | Chemical symbol for Phosphorous |
| "Schist" | a group of medium-grade metamorphic rocks, chiefly notable for the preponderance of lamellar minerals. Schist is characteristically foliated, meaning the individual mineral grains split off easily into flakes or slabs |
| "S" | Chemical symbol for Sulphur |