13 Sep 2013 07:00
13 September 2013
Bellzone Mining plc
("Bellzone" or "the Company")
Kalia Optimisation Study delivers maiden Reserve
High level of confidence in Kalia's ability to be profitable
Highlights:
· Maiden Probable Reserve of 59.8million tonnes ("mt") @ 54.1% Fe within the high grade Indicated Oxide and Supergene BIF Mineral Resource
· Ore Reserves derived from Indicated Resources of 72.8mt @ 53.7% Fe, included in the Indicated and Inferred Mineral Resource Inventory of 124.2mt of +48% Fe ore at an average grade of 53.5%Fe
· Maiden reserve provides confidence in the project's economic viability, mine plan and resource integrity
Bellzone CEO Glenn Baldwin commented:
"The Kalia Optimisation Study has focussed on the high grade portion of the Kalia Oxide resource developed to date. A resource is based on the geology, whereas a reserve introduces all of the extraction and marketing elements to provide a level of economic confidence; that is, it confirms that, under a given set of assumptions, the project can be mined at a cost level that allows the Company to sell the iron product profitably. We look forward to announcing the outcome of the Kalia Optimisation Study, on Kalia Project 1 ("KP1"), which will be completed to a Bankable Feasibility Study level of confidence."
Bellzone (AIM:BZM) is pleased to announce a maiden Ore Reserve Statement for the Kalia Mine Project in the Republic of Guinea, reported in accordance with the 2004 JORC Code. The Ore Reserve Statement is derived from the Mineral Resource Estimate completed by CSA Global released on 16th August 2013 and from work done for the Kalia Optimisation Study that is on track for release by the end of this month.
As stipulated by the JORC Code, the Probable Ore Reserve has undergone sufficient rigor and provides confidence on which to base an investment decision on the development of a deposit.
The Ore Reserve Statement is a key milestone for the Kalia Mine Project providing confidence in the economic viability of the Kalia Optimisation Study from only 59.8mt of the identified 124.2mt of high grade oxide material. The delivery of the maiden Ore Reserve statement supports the Company's confidence in the quality, economic viability and business risk environment of the Kalia Mine Project.
The Bellzone resource development programme aims to continue the conversion of the Oxide Mineral Resource to Reserve status.
Maiden Oxide Reserve Summary:
Kalia Central and Kalia NW Ore Reserve Summary | |||||||||
Mineralised Zone | Fe % Cut-off | Classification | Tonnes | Fe % | SiO2 % | Al2O3 % | P % | S % | LOI % |
Oxide & SBIF | 48 | Probable | 59.8 | 54.1 | 3.8 | 5.5 | 0.09 | - | 9.7 |
Notes:
1. Metal price assumption $US77/dmt FOB at Konta Port Transhipping operation
2. Discount rate of 10%
3. Mining Dilution 0.2%
4. Mining Loss 6.5%
KP1 Resource Summary:
Kalia Central and Kalia NW Mineral Resource Summary | |||||||||
Mineralised Zone | Fe % Cut-off | Classification | Tonnes | Fe % | SiO2 % | Al2O3 % | P % | S % | LOI % |
Oxide & SBIF | 48 | Indicated | 72.8 | 53.7 | 4.3 | 5.8 | 0.1 | 0.03 | 9.6 |
Oxide & SBIF | 48 | Inferred | 51.4 | 53.3 | 5.7 | 5.4 | 0.08 | 0.02 | 9.1 |
Oxide & SBIF | 48 | Indicated + Inferred | 124.2 | 53.5 | 4.9 | 5.6 | 0.9 | 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.
Competent Person Statements:
The reported Ore Reserves have been compiled by Mr Harry Warries. Mr Warries is a Fellow of the Australasian Institute of Mining and Metallurgy and an employee of Coffey Mining Pty Ltd. He has sufficient experience, 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 as defined in the 'Australasian Code for Reporting of Mineral Resources and Ore Reserves' of December 2004 ("JORC Code") as prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists and the Minerals Council of Australia. Harry Warries 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 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 |
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Peta Baldwin, Corporate Affairs | +44 (0)1534 513 500 |
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Canaccord Genuity Limited |
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Nominated Adviser and Broker |
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Andrew Chubb/Neil Elliot | +44 (0)20 7523 8000 |
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Investec Securities |
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Broker |
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Chris Sim/George Price | +44 (0)20 7597 5970 |
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Tavistock Communications (UK) |
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Financial Public Relations |
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Jos Simson/Mike Bartlett/Emily Fenton | +44 (0)20 7920 3150/+44 (0)7788 554 035 |
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 AND EXPLANATORY NOTE
Explanatory note:
A Mineral Resource is based on the geology. It is focussed on the minerals with assumptions made about the metallurgy and economics. The assumptions have some validity, that is, work must go into it to show that there is a basis in fact, but they do not have to be definitive, only a potential that the Mineral Resource under review could be potentially mined in the future.
An Ore Reserve is based on a Mineral Resource (from either an Indicated or Measured Mineral Resource) as well as the 'modifying factors' of the type of study undertaken (Bankable or Definitive Feasibility Study), reasonable cut off parameters applied to the Mineral Resource, how it will be mined, metallurgy conversion process, environmental considerations, cost and availability of infrastructure, revenue, social and sovereign risk, appropriate permits in place and capital and operating costs which have a sound basis to a determine with a high level of confidence, that all or part of a resource will make money based on the results of addressing those factors. The amount of information and the quality, plus the actual category of the Mineral Resource will determine the Reserve category of either Probable or Proven. Probable Reserves are generally derived from Indicated Mineral Resources or from Measured Mineral Resources if the modifying factors don't give a reasonably conclusive answer to one or all of the modifying factors. Proven is only derived from Measured Mineral Resources if all the modifying factors are addressed and if the Mineral Resource under review, makes money.
As stipulated by the JORC Code, a Probable Ore Reserve has undergone sufficient rigor and provides confidence on which to base an investment decision on the development of a deposit.
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"
| Joint Ore Reserve Committee - an internationally recognised method of classifying mineral resources and reserves |
"LOM" | Life of mine |
"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
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