15 Oct 2015 11:32
15 October 2015
Bellzone Mining plc
("Bellzone" or "the Company")
Kalia Mine Project Update
Maiden Nickel Resource
Bellzone Mining plc (AIM:BZM) is pleased to announce a new Mineral Resource Estimate ("MRE") reported in accordance with the JORC Code (2012) by CSA Global Pty Ltd ("CSA Global"). The MRE is focused on areas of the Kalia Project where nickel mineralisation occurs in conjunction with iron within the laterite profile.
Highlights:
· Total nickel Mineral Resources of 79.28 million tonnes at 0.69% Ni and 0.044% Co at a 0.50% nickel cut-off grade
· Indicated Mineral Resource of 27.43 million tonnes at 0.70% Ni and 0.037% Co
· Inferred Mineral Resources of 51.85 million tonnes at 0.68% Ni and 0.047% Co
· Supports further study to be carried out on developing a modular nickel pig iron ("NPI") production facility on site
In the evaluation of Ore Reserves in an area known as Kalia Northwest (Kalia NW) for the Company's 100 per cent. owned Kalia Project 1, it was noted that in certain areas, weathering processes have formed an iron (goethite/haematite) and nickel-enriched laterite profile over an underlying ultramafic intrusion. In addition to high iron content, many samples within the weathering profile have nickel mineralisation consistent with lateritic enrichment, with values up to 2.5% Ni being recorded.
On 15 July 2015 Bellzone published an update announcing that a strategic review had highlighted the presence of nickel laterite mineralisation at Kalia NW. Bellzone recognised that this provided a potential alternative pathway to commence iron ore mining at Kalia, producing nickel pig iron ("NPI") or ferronickel on site. The Company commissioned CSA Global to commence work on an initial MRE under the JORC Code (2012). CSA Global has now completed and provided Bellzone with its MRE report that confirms a maiden nickel JORC Mineral Resource Estimate. Initial scoping by Bellzone suggests that the quantity of resources is more than adequate to support further studies to assess the viability of developing a modular NPI or ferronickel production facility in Guinea. The new MRE is based solely on data collected during the iron exploration phase of the project.
The nickel mineralisation occurs in two related but distinct rock types:
· transition and massive laterite zones in which some of the iron ore resources published by Bellzone in August 2013 ("Published Iron Ore Resources") occur ("Nickel-Iron ore Mineral Resources"); and
· saprolites and saprock adjacent to the Published Iron Ore Resources ("Nickel Mineral Resources")
Both types of mineralisation have been estimated and are shown in the following table.
Nickel-Iron Ore and Nickel Mineral Resource estimate for Kalia NW (100 per cent. owned and operated by the Company)
Category | Tonnes Mt | Mineral Resources Contained metal | Grades | ||||||||||
Iron ore | Ni | Co | Ni % | Co % | Fe % | SiO2% | Al2O3% | MgO% | P % | S % | LOI % | ||
Mt | Kt | Kt | |||||||||||
Fe-Ni mineralisation | |||||||||||||
Indicated | 27.43 | 27 | 191 | 10.2 | 0.70 | 0.037 | 54.54 | 2.83 | 4.04 | 0.64 | 0.09 | 0.03 | 10.45 |
Inferred | 15.64 | 16 | 102 | 6.0 | 0.65 | 0.039 | 54.39 | 3.59 | 3.71 | 0.79 | 0.06 | 0.02 | 9.99 |
Sub-Total | 43.07 | 43 | 293 | 16.2 | 0.68 | 0.038 | 54.48 | 3.11 | 3.92 | 0.70 | 0.08 | 0.03 | 10.28 |
Ni mineralisation | |||||||||||||
Inferred | 36.21 | 251 | 18.4 | 0.69 | 0.051 | 37.02 | 21.56 | 3.08 | 7.58 | ||||
Sub-Total | 36.21 | 251 | 18.4 | 0.69 | 0.051 | 37.02 | 21.56 | 3.08 | 7.58 | ||||
TOTAL | 79.28 | 544 | 34.6 | 0.69 | 0.044 | 46.51 | 11.54 | 3.54 | 3.84 | ||||
Notes:
1. Mineral Resources were estimated within constraining wireframes based on Ni > 0.5% cut-off grade and Fe > 48% cut off grade per resource block for iron ore resources.
2. Mineral Resources are classified according to the JORC Code.
3. Dry bulk density is 1.6 t/m3 for laterite and transition zones and 1.8 t/m3 for saprolite and saprock zones
4. Rows and columns may not add up exactly due to rounding.
5. The above Nickel-Iron Resource tonnages should be excised from the main Iron resource tonnages in the Published Iron Ore Resources.
KH Tung, Chief Executive Officer of Bellzone said "The nickel JORC Mineral Resource Estimate confirms the potential for Bellzone to commence the development of the Kalia iron ore mine with downstream processing of iron ore in Guinea to produce a higher value iron ore product with a high nickel content. We will also assess the potential contribution that the cobalt content in the mineralisation provides."
"We have identified a pathway to development of KP1 and on to the development of the greater Kalia project. The Board will consult with stakeholders and determine the next steps to progress the study and we look forward to providing further updates as the strategic review progresses."
Competent Person Statements:
The information in this announcement that relates to the Nickel Mineral Resource at Kalia is based on information compiled by Mr Mick Elias of CSA Global. Mr Elias takes overall responsibility for the Mineral Resource estimates. Mr Elias is a member of the Australian Institute of Geoscientists and has 35 years of 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 2012 Edition)". Mr Elias has reviewed the information contained in this announcement and consents to the inclusion of such information in this announcement in the form and context in which it appears.
Enquiries:
Bellzone Mining plc Simon Edwards
| +44 (0) 1534 513 500 |
WH Ireland Limited Nominated Adviser James Joyce / James Bavister
| +44 (0) 20 7220 1666 |
HD Capital Partners Limited Broker Paul Dudley / Philip Haydn Slater | +44 (0) 20 3551 4870 |
For more information, visit http://www.bellzone.com/
GLOSSARY
"Al2O3" | Aluminium Oxide |
"Co" | Chemical Symbol for Cobalt |
"Goethite" | A hydrated oxide of iron produced by weathering of iron deposits. |
"Haematite" | An oxide mineral (Fe203). A common iron oxide in iron ore deposits. |
"Fe" | Chemical symbol for Iron |
"Indicated Mineral Resource" | as defined in the 2012 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 2012 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" | The Australian Joint Ore Reserves Committee - An internationally recognised method of classifying mineral resources and reserves |
"kt" | thousand tonnes |
"Laterite zone" | The Laterite zone , also referred to as the limonite zone (goethite or goethite-haematite), is the uppermost weathered zone, sitting above the Transition zone. This zone is characterized by high grades of iron, low grades of alumina, silica and magnesium. Nickel is associated with iron oxides (goethite and limonite). Sometimes silica and alumina grades could be higher towards the surface due to contamination by soil material through fractures . |
"Limonite" | A general term for a hydrated iron oxide material. |
"Measured Mineral Resource" | defined in the 2004 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 |
"mt" | Million tonnes |
"Ni" | Chemical symbol for Nickel |
"Oxide" | ore containing oxides of iron, chiefly haematite, goethite and limonite |
"P" | Chemical symbol for Phosphorous |
"Saprock" | Saprock is a physically and initially chemical disintegration of fresh rock. Nickel can be concentrated in the top part of this zone, usually associated with joints and fractures, resulting in blocks of fresh parent rock surrounded by altered material. The Saprock or Bedrock zone sits below the Saprolite zone. |
"Saprolite" | The Saprolite zone sits above the Saprock zone and below the Transition zone and is characterized by low grades of iron and high content of silica and magnesium. Nickel mineralisation is typically associated with nontronite and montmorillonite clays, but higher grades can result from supergene enrichment by nickel substitution for magnesium in serpentinite. Bedrock fabric is preserved. Nickel is concentrated in the top part of this zone, rarely over the full thickness. |
"S" | Chemical symbol for Sulphur |
"Transition zone" | The Transition zone is usually unconsolidated and sits immediately above the Saprolite zone and below the Laterite zone. This zone is characterized by decreasing grades of silica and magnesium and increasing grades of iron from bottom to top. Nickel mineralisation is typically associated with nontronite and montmorillonite clays and with iron oxides (goethite). |