14 Jun 2012 07:00
14 June 2012
Bellzone Mining plc
("Bellzone" or "the Company")
Kalia Mine Oxide Mineral Resource and Oxide Product Increase
Bellzone Mining plc (AIM:BZM), is pleased to announce the following increase in its total Indicated and Inferred JORC oxide and SBIF mineral resource at its 100% owned Kalia Mine Project in Guinea, West Africa.
Highlights:
·; As a result of recent drilling and metallurgical testwork the Kalia project in Guinea has shown the potential for approximately 1.7 billion tonnes of beneficiated product within the currently defined JORC reportable Mineral Resource zones.
·; JORC reportable oxide and SBIF Mineral Resources have been increased 44.9% from 285.5 million tonnes grading 38% Fe to 413.9 million tonnes at an average grade of 35.8% Fe.
·; Metallurgical testing completed to date indicates 151 million tonnes of beneficiated product grading +59.3% Fe could be extracted from these oxide and SBIF Mineral Resources.
Oxide resource summary
·; 63.4% increase in JORC oxide Mineral Resource from 193mt to 315.3mt grading 35.7% Fe
·; 6.7% increase in the SBIF Mineral Resource from 92.5mt to 98.6mt grading 35.9% Fe (The SBIF material was not the focus of the Company's recent drilling programme and potential exists to further increase this resource)
·; 44.9% increase in JORC oxide and Supergene BIF ("SBIF") material from 285.5mt at 38% Fe to 413.9mt at 35.7% Fe (see table)
·; Based on the metallurgical testwork completed to date, this increase in the JORC reportable Mineral Resources of Oxide and SBIF defined thus far, has delivered a 70% increase in beneficiated product , from 107.3mt to 151mt grading 59.3% Fe.
·; Diamond drilling continues to further define the Supergene resource
·; The surface oxide and the SBIF is the pre-strip material prior to accessing the 6.16 billion tonne JORC magnetite and magnetite schist mineral resource
The JORC reportable Mineral Resources at Kalia 1 are as follows:
Bellzone Kalia 1 Oxide and Supergene BIF Mineral Resource Estimate | |||||||||
Mineralisation zone | JORC Classification | Tonnes (Mt) | Fe % | SiO2 % | Al2O3 % | P % | S % | LOI % | |
Oxide | Indicated | 40.8 | 38.3 | 15.9 | 16.9 | 0.10 | 0.03 | 10.4 | |
Oxide | Inferred | 274.5 | 35.3 | 18.0 | 17.8 | 0.09 | 0.03 | 11.0 | |
SBIF | Indicated | 17.8 | 38.4 | 32.0 | 5.1 | 0.10 | 0.17 | 0.0 | |
SBIF | Inferred | 80.8 | 35.4 | 36.0 | 5.0 | 0.09 | 0.17 | 4.2 | |
All | Indicated + Inferred | 413.9 | 35.8 | 21.9 | 14.6 | 0.09 | 0.06 | 9.3 | |
Note: The CSA Mineral Resource was estimated within constraining wireframe solids based on the lithological interpretation. The Mineral Resource is quoted from blocks within the lithological envelopes above a 20 % Fe cut-off grade. Differences may occur due to rounding. | |||||||||
Bellzone Kalia 1 Magnetite BIF and Magnetite Schist Mineral Resource Estimate | |||||||||
Mineralisation zone | JORC Classification | Tonnes (Mt) | Fe % | SiO2 % | Al2O3 % | P % | S % | LOI % | |
BIF | Measured | 240 | 27.9 | 45.7 | 2.8 | 0.07 | 0.83 | 1.6 | |
BIF | Indicated | 850 | 27.3 | 46.1 | 3.1 | 0.07 | 0.96 | 1.3 | |
BIF | Inferred | 3540 | 25.4 | 46.3 | 4.5 | 0.08 | 0.48 | 1.4 | |
Schist | Inferred | 1530 | 9.6 | 48.9 | 8.8 | 0.05 | 0.25 | 5.8 | |
Total Magnetite | Measured + Indicated + Inferred | 6160 | 21.84 | 46.89 | 5.31 | 0.07 | 0.5 | 2.49 | |
Note: The CSA Mineral Resource was estimated within constraining wireframe solids based on the lithological interpretation. The Mineral Resource is quoted from blocks within the lithological envelopes above a 5% Fe cut-off grade. Differences may occur due to rounding. | |||||||||
Metallurgical testwork completed to date the Kalia Mine Project indicates that the oxide and magnetite Mineral Resources are beneficiable. This testwork suggests that within the currently defined JORC Mineral Resource zones there are approximately 1.7 billion tonnes of recoverable product comprising:
Kalia 1 Beneficiated Products Oxide and SBIF | |||||
Mineralisation zone | Classification Zone | Resource Tonnes (Mt) | Resource Fe Grade | Beneficiated Product Tonnes (Mt) | Product Grade Fe |
Oxide | From Indicated Zone | 40.8 | 38.3% | 119.1 | 58.8% |
Oxide | From Inferred Zone | 274.5 | 35.3% | ||
SBIF | From Indicated Zone | 17.8 | 38.4% | 31.9 | 60.9% |
SBIF | From Inferred Zone | 80.8 | 35.4% | ||
Total Oxide and SBIF | From Indicated + Inferred Zones | 413.9 | 35.8% | 151 | 59.3% |
Kalia 1 Beneficiated Products Magnetite BIF and Magnetite Schist | |||||
Mineralisation zone | Classification Zone | Resource Tonnes (Mt) | Resource Fe Grade | Beneficiated Product Tonnes (Mt) | Product Grade Fe |
BIF | From Measured Zone | 240 | 27.9% | 1475 | 68.7 |
BIF | From Indicated Zone | 850 | 27.3% | ||
BIF | From Inferred Zone | 3540 | 25.4% | ||
Schist | From Inferred Zone | 1530 | 48.9% | 63.4 | 63.7 |
Total Magnetite | From Measured + Indicated + Inferred Zones | 6160 | 21.9% | ||
The oxide drilling programme has extended known oxide mineral resources to the north and south of the previously defined Mineral Resources announced in September 2011. Associated metallurgical testing, completed as part of the DFS has now helped define the oxide process flow sheet and likely mass recoveries.
The SBIF is a partially oxidised transition zone located above the magnetite JORC zones and below the surface oxide JORC zone. This 98.6 Mt Mineral Resource is friable and metallurgical test work has shown the material to readily upgrade to a product with an average grade of 60.9% Fe. Metallurgical test work in Q3 2012 will further refine recoveries and product grade from the SBIF while the current diamond drilling programme will help define the full extent of the SBIF mineralisation in the area.
The oxide and SBIF products will be blended in the ratio of 30% SBIF product and 70% oxide product for a product with the following specification:
Anticipated Oxide Blend Product Spec | Fe | SiO2 | Al2O3 | P | S | LOI |
Oxide / SBIF Blend | 59.5% | 5.1% | 3.8% | 0.11% | 0.04% | 5.3% |
The Company's on-going oxide resource development plan continues to target the oxide and SBIF resources from Kaila's 55km2 surface oxide potential. Assay and beneficiation testwork is in progress, with further results due in Q3 2012.
The RC drilling programme is currently focused on the Kalia II detrital oxides which have been shown to have potential to upgrade to a saleable product. Additional optimisation testwork is in progress, with results expected in Q4 2012.
The Company's ongoing oxide development plan continues to target 1.5 billion tonnes of oxide resource from five key target areas which account for 63% of Kaila's 55km2 surface oxide potential. Initial estimates suggest this will be sufficient to support 600 million tonnes of oxide product, sufficient for 20 years of sales.
Nik Zuks, Chief Executive Officer, commented: "The increase in Kalia's resources announced today continues to demonstrate the extent of the Kalia oxide and the supergene resource. The team has proven that standard processing techniques will provide the Company with 151 million tonnes of saleable product from the area that must be stripped to reach our 6 billion tonne magnetite resources.
The drilling programme continues and we expect the oxide and supergene resource to increase providing Kalia with a long life oxide product to complement its significant magnetite resource."
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
CSA Global Pty Ltd, the independent geologists have estimated the Company's JORC reportable Mineral Resources for the Oxide, Supergene BIF and Magnetite material at Kalia.
The information in this announcement that relates to in-situ Oxide and Supergene BIF Mineral Resources is based on information compiled by Grant Louw of CSA Global. Grant Louw takes overall responsibility for the Oxide and Supergene BIF Mineral Resource estimates. Mr Louw is a member of the Australian Institute of Geoscientists and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a competent Person in terms of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2004 Edition). Grant Louw consents to the inclusion of such information in this announcement in the form and context in which it appears.
The information in this announcement that relates to in-situ Magnetite Mineral Resources is based on information compiled by Galen White of CSA Global. Galen White takes overall responsibility for the Magnetite Mineral Resource estimates. Mr White is a Fellow of the Australian Institute of Mining and Metallurgy and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a competent Person in terms of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2004 Edition). Galen White consents to the inclusion of such information in this announcement in the form and context in which it appears.
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 Mine
The 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 1.5 billion tonnes of contained iron in JORC resources in 6.16 billion tonnes of magnetite, 315.3 million tonnes of oxide and 98.6 million tonnes of supergene BIF. The oxide and Supergene BIF resources have been established from a portion 15.5% 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 while ongoing development is targeting 1.5 billion tonnes of oxide.
Forécariah JV
Bellzone 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. Commercial production commenced in May 2012 and production will be ramped up through 2012 to a 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. 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.
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 quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed. 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,
|
"Measured Mineral Resource" | as defined in the JORC Code, is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity. A Measured Mineral Resource will be based on more data and therefore will be more reliable than a Indicated Mineral Resource estimate |
"SBIF" The Supergene BIF "SBIF" is a partially oxidised transition zone located above the magnetite JORC zones and below the surface oxide JORC zone.
"JORC Code" Joint Ore Reserves Committee "JORC" code is the Australian benchmark code for reporting of exploration results, Mineral Resources and Ore reserves