Last checked at 5 Jun 2008 07:00
05 June 2008
Ferrexpo reports an additional 2 billion tonnes of iron ore resource at GPL
Ferrexpo plc ("Ferrexpo" or the "Group") is pleased to announce the results of a review of the iron ore resources contained within its Gorishne-Plavninskoye and Lavrikovskoye deposits undertaken as part of the project to expand and extend its existing Gorishne-Plavninskoye Lavrikovskoye ("GPL") mine.
The resources associated with the GPL mine in the measured, indicated and inferred categories have been increased by 127.4% to 3,704mt, from 1,629mt at the time of the Group's listing. The increase in resources is primarily due to an extension in the depth limit to which resources have been declared. The review of the resources was undertaken by SRK Consulting (UK) Ltd ("SRK"), which also performed the original resource assessment for the Group's listing. SRK has confirmed that both the original and restated resources are reported in accordance with the JORC code.
The SRK report containing the full resource statement is available on the Group's website (www.ferrexpo.com).
The Group has engaged Turgis (Pty) Ltd to assist it in revising the long term GPL mine plan based on the updated SRK resource model and to investigate further options for nearer term mine optimisation. The Group is confident that this work is likely to show a significant increase in the economically recoverable iron ore reserves associated with the GPL mine.
Dave Webster, Ferrexpo's Interim Chief Operating Officer, said:
"We at Ferrexpo remain focused on maximising the value of our resource through continued exploration and efficient mine planning. This positive restatement of the resources contained within the Gorishne-Plavninskoye and Lavrikovskoye iron ore deposits associated with our GPL mine gives us added confidence in the Group's ability to expand production at the mine and to extend its life beyond 2035. We are pleased that SRK has independently verified the extent of the very large resource available to the Group through its existing mine, and the project to extend and expand that mine continues to proceed on schedule and within budget. This significant uplift in our resources is in addition to the substantial resources available to our major growth projects at Yeristovskoye and Belanovskoye."
Resource Statement
| Gorishne- | 1 January 2008 | 1 January 2007 | |||
| Plavninskoye | Tonnage (mt) | Grade Fe Total (%) | Tonnage (mt) | Grade Fe Total (%) | Change |
| Measured | 348 | 29 | 239 | 30 | 46% |
| Indicated | 1,095 | 31 | 845 | 33 | 30% |
| Sub-total | 1,443 | 30 | 1,085 | 32 | 33% |
| Inferred | 1,275 | 31 | 51 | 34 | 2,400% |
| Total | 2,718 | 1,136 | 139% | ||
| Lavrikovskoye | 1 January 2008 | 1 January 2007 | |||
| Tonnage (mt) | Grade Fe Total (%) | Tonnage (mt) | Grade Fe Total (%) | Change | |
| Measured | 104 | 31 | 86 | 34 | 21% |
| Indicated | 708 | 30 | 394 | 33 | 80% |
| Sub-total | 812 | 30 | 480 | 33 | 69% |
| Inferred | 174 | 29 | 13 | 27 | 1,238% |
| Total | 986 | 493 | 100% | ||
For further information, please contact:
Ferrexpo: +44 207 389 8304
Gavin Mackay
Finsbury: +44 207 251 3801
Robin Walker
Alex Simmons
Notes to Editors:
Ferrexpo is a Swiss headquartered resources Group with assets in Ukraine, principally involved in the production and export of iron ore pellets, used in producing steel. Current output is over 9 million tonnes per annum, approximately 85% of which is exported to steelmakers around the world, and the Group is currently undertaking a significant growth programme. The Group is listed on the main market of the London Stock Exchange under the ticker FXPO. For further information please visit www.ferrexpo.com.