26 Sep 2011 07:00
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26 September 2011
Bellzone Mining plc
("Bellzone" or the "Company")
Significant Increase in Kalia Mine JORC Resource
Highlights:
·; Total Kalia I JORC magnetite mineral resource increased to 6.16 billion tonnes
- 63% increase in the measured and indicated JORC resource of the Kalia I banded iron formation ("BIF") magnetite from 670mt at 27.7% Fe to 1,095mt at 27.4% Fe
- 65% increase in overall Kalia I magnetite JORC resource (BIF and Schist) from 3.74 billion tonnes to 6.16 billion tonnes
·; 7km of the 19km Kalia I strike has been drilled to date
·; Bulk testwork has shown the magnetite can be readily beneficiated using a standard grinding and magnetic process to produce a magnetite concentrate of +68% Fe
Bellzone Mining plc (AIM:BZM), is pleased to announce an overall 65% increase to 6.16 billion tonnes in the total JORC magnetite resource at its 100% owned Kalia Mine Project in Guinea, West Africa. The updated JORC resource was prepared by independent consultant CSA Global UK.
The Kalia Mine Project has a current magnetite iron ore resource of:
Kalia Mineral Resource Estimate as at 23 September 2011 | |||
JORC Resource Class | Magnetite | Billion | Fe% |
Host Material | Tonnes | ||
MEASURED | BIF | 0.24 | 27.9 |
INDICATED | BIF | 0.85 | 27.3 |
MEASURED + INDICATED | BIF | 1.095 | 27.4 |
INFERRED | BIF | 3.54 | 25.4 |
SUB - TOTAL BIF RESOURCE | BIF | 4.63 | 25.9 |
INFERRED | SCHIST | 1.53 | 9.6 |
TOTAL JORC RESOURCE | BIF + SCHIST | 6.16 | 21.9 |
EXPLORATION POTENTIAL | BIF + SCHIST | 1.0 - 1.7 | 15.00-25.00 |
The Company has now completed an 18,000m diamond drilling ("DD") infill programme, which commenced in Q3 2010, which resulted in the increase to the magnetite measured and indicated JORC resource.
The competent BIF JORC resource has increased from 3.05 billion tonnes, grading at 25.8%Fe to 4.63 billion tonnes grading at 25.9% Fe, with the softer lower grade magnetite schist inferred JORC resource increasing from 690 million tonnes to 1.53 billion tonnes.
The next phase of the Company's magnetite extension DD programme is expected to add a further 1km to the drilled strike length and to extend the resource depths. The results of the magnetite extension DD programme are expected in Q2 2012. The exploration potential of an additional 1.0 to 1.7 billion tonnes will be targeted as part of this ongoing programme.
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. The bulk test work assays and Davis Tube results provide the following product composition:
Kalia Mineral Resource Estimate Concentrate Potential | ||||||
Domain | Mass recovery % | Fe% | SiO2% | Al2O3% | P% | S% |
BIF | 31.86 | 68.74 | 3.91 | 0.14 | 0.01 | 0.29 |
Schist | 4.14 | 63.66 | 4.34 | 0.29 | 0.01 | 0.17 |
537 Davis Tube Results were completed on the BIF and schist domains to support the JORC estimate, with an ongoing testwork programme in place to further refine the quality and grade versus grind size to ensure the optimum product will be produced from the Kalia Mine.
All assay and metallurgical test work was undertaken by independent laboratories in Perth, Western Australia
The Kalia Mine Project has a current total iron ore resource of:
Tonnes 'm | Grade Fe | Product Tonnes 'm | Product Grade Fe | |
Inferred Oxide JORC Resource | 193 | 38.6% | 70.1 | 58.0% |
Inferred SBIF JORC Resource | 92.5 | 36.5% | 37* | 63.4%* |
Measured, Indicated and Inferred BIF JORC Resource | 4,630 | 25.9% | 1,475** | 68.7%** |
Inferred Schist JORC Resource | 1,530 | 9.8% | 63.3* | 63.7%* |
*estimations have been made on preliminary testwork results
** results supported by bulk testwork
Nik Zuks, Chief Executive Officer, commented: "I am pleased the target of defining one billion tonnes of measured and indicated BIF JORC resource was achieved as planned. This significant magnetite increase has been established on the back of our oxide JORC programme and further validates the creation of one of Africa's largest iron ore projects.
"The JORC increase supports our own estimate of some 10 billion tonnes of BIF across the Kalia site and the growing demand for the high quality magnetite concentrate in the steel industry, based on better furnace efficiencies and lower greenhouse emissions, underlines the strategic importance of Kalia. We now have JORC resources of more than 1.4 billion tonnes of contained iron and, in addition to the valuable partnership with China International Fund Limited, and the Forecariah JV project being on track for near-term production in Q1 of 2012, the management and operational team are continuing to work efficiently to schedule."
Enquiries: | |
Bellzone Mining plc | |
Nik Zuks/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 7 9203 150 / +44 (0)7899 870 450 |
PPR (Australia) | |
David Ikin | +61 (0) 8 9388 0944 / +61 (0) 408 438 772 |
CSA Global UK, the independent geologists have established and certified the Company's JORC complaint oxide, Supergene BIF and magnetite resource for Kalia.
The mineral resource information disclosed in this announcement has been reviewed by Galen White (MAusIMM), Principal Consultant of CSA Global. Mr White 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). Mr White 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 Competent Person for the purposes of this announcement.
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 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. A VTEM aerial survey is currently being conducted to further define areas for a targeted drilling programme.
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.
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 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 | |
"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 | |
"Supergene BIF" | BIF material that is weathered and more friable with an enriched Fe % compared to BIF in the magnetite resource. | |
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