23 Mar 2012 07:00
23 March 2012
Bellzone Mining plc
("Bellzone" or "the Company")
Maiden production for Forécariah JV
·; Maiden blast conducted at Yomboyeli central
·; JV operations have started production stockpiling
·; Maiden 30,000 tonnes liberated
Bellzone Mining plc (AIM:BZM) is pleased to announce that iron ore production and product stockpiling for the Forécariah JV Project ("the JV") in the Republic of Guinea, West Africa, has commenced following the maiden blast on the Yomboyeli Central ore body on 22 March 2012.
The maiden blast consisted of 213 holes and it is anticipated that this will provide more than 30,000 tonnes of Run of Mine ("RoM") ore for processing through the installed crushing and screening plants. The maiden blast has provided a data set that can be analysed and the blasting process will be evaluated and refined on an ongoing basis to ensure production is maximised over time.
The initial tonnes will be used for wet commissioning of the crushing and screening plants and will be stockpiled as product at the mine site ahead of haulage to the port, pending the issue of the Mining Permit by the Government of Guinea. On receipt of the Mining Permit, the product will be trucked to the port and stockpiled in preparation for barge loading, which is anticipated to be by the end of April 2012. Production operations will be progressively ramped up to achieve the design capacity of 4mtpa over a six month period, with first shipment scheduled for early June 2012.
Nik Zuks, Chief Executive Officer of Bellzone, commented: "We have now achieved our primary objective of being able to produce iron ore on schedule, in Q1 of this year. I am very proud of what the team has achieved in such a short time and work continues apace; the Mining Permit is imminent, our fleet arrives in mid April, and exports are anticipated to start in early June. This is just the first step, albeit a significant one, in developing a long term sustainable iron ore operation at Yomboyeli. We remain committed to achieving both the objectives set for Forécariah, and those for bringing the Kalia Mine Project into production as planned in 2014."
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 7050 6500
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
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 have committed to fully fund the initial production and infrastructure of a joint venture to undertake the accelerated exploration and development programme on Guinea Development
Corporation 's ("GDC"), a subsidiary of CIF, Forécariah iron permits that lie between 30 and 80 kilometres from the Guinea coast. Production started on schedule in Q1 2012, based on an internal resource estimate of 146 million tonnes of oxide, with an initial production 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. The VTEM aerial survey has been completed and highly prospective targets have been identified and will form the basis of the 2012 drilling programme due to commence in December 2011.
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.
About China Sonangol and China International Fund Limited ("CS Group")
CS Group is headquartered in Hong Kong Special Administrative Region of China, and has investment footprints in 3 continents and more than 20 countries.
The primary activities of CS Group is in oil, gas and mineral exploration and production, commodities trading and is also globally active in real estate and infrastructure development, where in particular, through China International Fund, it has participated in the rehabilitation and development of new and existing transport infrastructure in Angola such as New Luanda International Airport, where it is envisioned to be a major airport hub West Africa. Additionally, on its railway experience, CIF rehabilitated almost 3,600 kilometres of railway in Angola. CIF has also constructed 3 logistics base in Angola where in total occupies 925,000m2, as the logistical backbone to support its infrastructure and industrial implementation and development program, consisting cement and brick production plants, sand and stone quarries, as well as production of industrial materials such as steel sheets and plastic pipes.
With the strengths of its experience in large scale infrastructure development in Africa, CS group is in the position to accelerate the iron ore exploration and production with its Joint Venture partner Bellzone Mining PLC.
CS Group has a vision for Africa. This vision is, through South-South cooperation, where in partnership with private industry and with the government, CS Group will develop public transport infrastructure such as road, rail, seaports and airports to improve connectivity and accessibility, as well as public utilities, agriculture, aqua culture, public housing, construction materials, mining and oil and gas projects, where its commercial objectives are aligned with the needs of countries to develop the economy and improve, ultimately, the living standards of the people.