16 Aug 2013 07:00
16 August 2013
Bellzone Mining plc
("Bellzone" or "the Company")
Kalia Mine Project Updated Resource Statement
Bellzone Mining plc (AIM:BZM) is pleased to announce an increase of more than 650% in the Indicated high grade Oxide and Supergene BIF Mineral Resource tonnage and a significant grade increase within the Magnetite BIF mineralisation from 25.9% Fe to 29.3% Fe following geological work undertaken at its wholly owned Kalia Mine Project in the Republic of Guinea.
Highlights:
· High grade Indicated and Inferred Mineral Resource of 124.2mt at 53.5% Fe
· High grade oxide style resource converted from Inferred to Indicated level - high grade Indicated Oxide and SBIF Mineral Resource of 72.8mt at 53.7% iron ore ("Fe") (previously 9.6mt at 55.0% Fe)
· Total Oxide and SBIF Indicated and Inferred Mineral Resource increase of 11% to 913.2mt at 36.3% Fe (previously 822.6mt at 36.8%)
· Total Oxide and SBIF Indicated Mineral Resource increase of 268% to 264.6mt grading at 39.8% Fe (previously 72mt at 37.8%Fe) following conversion from Inferred level
· Maiden JORC Reserve, in conjunction with Kalia Project Optimisation Study, expected Q3 2013
· 13.1% grade increase in Magnetite Banded Iron Formation ("BIF") resource from 4.63bt at 25.9% to 4.72bt at 29.3% Fe
· Kalia Mineral Resources have the potential to produce 1.9bt of saleable iron ore from a total resource inventory of 5.6bt
Glenn Baldwin, Chief Executive Officer of Bellzone said that this substantial improvement in the confidence level of the Oxide and SBIF resources is the result of a focussed work programme at Kalia in support of the development of a Reserve statement and the forthcoming bankable feasibility level Kalia Project Optimisation Study ("KOS").
"As can be seen, the material readily beneficiates to a saleable iron product.
"Bellzone looks forward to releasing the report of the Kalia Project Optimisation Study in Q3 2013 which is expected to define, to a bankable feasibility level of confidence, the first stage of phased development for the Kalia Project," he said.
Kalia's total higher grade Mineral Resources now stand at 124.2mt at a grade of 53.5% Fe (cut-off at 48% Fe) within a larger Oxide and SBIF resource of 913.2mt @ 36.3% Fe. Sufficient geological and metallurgical confidence in the characteristics of the Kalia iron ore deposits have enabled Bellzone and its independent technical advisers to estimate the 124.2mt Mineral Resource that forms the basis of the KOS.
The global Indicated resource for the Oxide and Supergene BIF has increased from 72mt @ 37.8% Fe to 264.6mt @ 39.8% Fe, a conversion of 192.6mt from Inferred to the higher confidence Indicated level whilst delineating higher grading material with a 5.3% increase in iron grade. Coupled with a 13.1% increase in the Magnetite BIF grade (mainly due to increasing the cut-off grade from 5% Fe to a much more robust 20% Fe), Bellzone has managed to estimate a further 90mt to increase the overall Magnetite BIF Mineral Resource from 4.63bt @ 25.9% Fe to 4.72bt @ 29.3% Fe.
Importantly, the increased magnetite tonnage within the Measured Resource category has increased from 240mt to 390mt, while maintaining more than 1 billion tonnes of combined Measured and Indicated Magnetite BIF resource inventory.
Bellzone has a potential beneficiated product tonnage inventory of 1.9bt from its entire 5.6bt resource inventory (oxide/SBIF product - 343.4mt at 59.2% Fe and magnetite product - 1,553mt at 68.3% Fe products).
Please refer to the tables below detailing the resource statements and potential beneficiated product tonnages. The beneficiated product tables have been updated (when compared with the last equivalent tables released in December 2012) by both tonnages in all categories and by metallurgical work completed by Bellzone's independent technical consultants in support of the forthcoming KOS.
Oxide and SBIF Resource Summary
Kalia Mineral Resource Estimate Summary | ||||||||
Fe % Cut-off | JORC Classification | Tonnes (mt) | Fe % | SiO2 % | Al2O3 % | P % | S % | LOI % |
All Zones Combined >20% | Indicated | 264.6 | 39.8 | 18.7 | 11.9 | 0.09 | 0.10 | 9.2 |
Inferred | 648.6 | 34.9 | 19.4 | 16.2 | 0.08 | 0.04 | 10.7 | |
Indicated + Inferred | 913.2 | 36.3 | 19.2 | 14.9 | 0.08 | 0.06 | 10.2 | |
All Zones Combined >48% | Indicated | 72.8 | 53.7 | 4.3 | 5.8 | 0.10 | 0.03 | 9.6 |
Inferred | 51.4 | 53.3 | 5.7 | 5.4 | 0.08 | 0.02 | 9.1 | |
Indicated + Inferred | 124.2 | 53.5 | 4.9 | 5.6 | 0.09 | 0.02 | 9.4 | |
Note: The CSA Mineral Resource was estimated within constraining wireframe solids based on the lithological interpretation provided by Bellzone. The Mineral Resource is quoted from blocks within these lithological envelopes above the specified Fe % cut-off grade . Differences may occur due to rounding. | ||||||||
Magnetite Resource Summary
Bellzone Kalia Magnetite BIF Mineral Resource Estimate | |||||||||
Mineralisation zone | JORC Classification | Fe % Cut-off | Tonnes (mt) | Fe % | SiO2 % | Al2O3 % | P % | S % | LOI % |
BIF | Measured | 20 | 390 | 27.9 | 45.8 | 2.7 | 0.07 | 1.1 | 1.5 |
BIF | Indicated | 20 | 690 | 28.5 | 45.7 | 2.7 | 0.07 | 0.95 | 1 |
BIF | Inferred | 20 | 3,640 | 29.6 | 45.2 | 2.5 | 0.07 | 0.61 | 0.5 |
Total BIF | Measured + Indicated + Inferred | 20 | 4,720 | 29.3 | 45.3 | 2.6 | 0.07 | 0.7 | 0.7 |
Note: The ore body contains 1.43bn tonnes @ 9.3% Fe Inferred low grade magnetite schist (which is not included in the above Resource Estimate) that can be included in run of mine, obviating the need for selective mining, or otherwise stockpiled. The CSA Mineral Resource was estimated within constraining wireframe solids based on the lithological interpretation. Fe% cut off is 20%. | |||||||||
Oxide and SBIF Beneficiated Product Table
Kalia Beneficiated Products Oxide and SBIF | |||||||||
Mineralisation Zone | Classification Zone | Resource Tonnes (Mt) | Recovered Tonnes (Mt) | Fe % | SiO2 % | Al2O3 % | P % | S % | LOI % |
All Oxide & SBIF Zones >20% Fe | Indicated | 264.6 | 343.4* | 59.2 | 5.1 | 3.8 | 0.08 | 0.1 | 6.5 |
Inferred | 648.6 | ||||||||
913.2 | |||||||||
*note - average mass recovery of 37.6% across the entire oxide and supergene BIF resource inventory to produce a potential oxide/supergene BIF blend product specification.
BIF Beneficiated Product Table
Kalia Beneficiated Products Magnetite BIF | |||||
Mineralisation zone | Classification Zone | Resource Tonnes (mt) | Resource Fe Grade | Beneficiated Product Tonnes (mt) | Product Grade Fe |
BIF | From Measured Zone | 390 | 27.9 | 1,553*
| 68.3
|
BIF | From Indicated Zone | 690 | 28.5 | ||
BIF | From Inferred Zone | 3,640 | 29.6 | ||
Total Magnetite | From Measured + Indicated + Inferred Zones | 4,720 | 29.3 | ||
*note - average mass recovery of 32.9% across the entire magnetite BIF resource inventory to produce a potential magnetite concentrate product specification.
Competent Person Statements:The information in this announcement that relates to in-situ Oxide and Supergene BIF, and Magnetite Mineral Resources is based on information compiled by Grant Louw of CSA Global. Grant Louw takes overall responsibility for the 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.
Enquiries:
Bellzone Mining plc
Peta Baldwin, Corporate Affairs +44 (0) 1534 513 500
Canaccord Genuity Limited
Nominated Adviser and Broker to Bellzone +44 (0)20 7523 8000
Andrew Chubb/Tarica Mpinga
Investec
Chris Sim +44 207 597 5970
Tavistock (UK)
Jos Simson/Mike Bartlett +44 (0)20 7920 3150 / +44 (0)7899 870 450
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 Project is the Company's flagship project with a globally significant magnetite resource of 4.72 billion tonnes and some 913.2 million tonnes of oxide and supergene banded iron formation.
Bellzone and China International Fund each hold a 50% investment interest in the joint venture operations at the Forécariah iron ore mine which commenced production in May 2012.
GLOSSARY
"Al2O3" | Aluminium Oxide |
"BIF" | banded iron formation |
"Fe" | Chemical symbol for Iron |
"Indicated Mineral Resource"
| as defined in the 2004 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 2004 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 |
"Magnetite"
| An oxide mineral (Fe3O4). The most common ferromagnetic mineral and principal ore |
"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 |
"Oxide" | ore containing oxides of iron, chiefly haematite, goethite and magnetite |
"P" | Chemical symbol for Phosphorous |
"Probable Reserve" | defined in the 2004 JORC Code, a 'Probable Ore Reserve' is the economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors These assessments demonstrate at the time of reporting that extraction could reasonably be justified. |
"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" and "SBIF"
| BIF material that is weathered and more friable with an enriched Fe % compared to BIF in the magnetite resource
|