Last checked at 1 Nov 2012 07:00
01 November 2012
Maiden Ore Reserve Statement for Zanaga Iron Ore Project
Highlights
·; Probable Ore Reserves of 2.5 billion tonnes at 34% Fe
·; Ore Reserves derived from 6.8 billion tonne 32% Fe Mineral Resource and Pipeline Pre-Feasibility Study
·; Significant milestone for the Zanaga Project during the Feasibility Study stage
·; Ore Reserves support planned 30Mtpa initial development phase of operations over 30 year mine life
Zanaga Iron Ore Company Limited ("ZIOC" or the "Company") (AIM:ZIOC) is pleased to announce a maiden Ore Reserve Statement for the Zanaga Iron Ore Project (the "Zanaga Project") in the Republic of Congo, reported in accordance with the JORC Code. The Ore Reserve Statement is derived from the Mineral Resource Estimate and Pipeline PFS study, recently announced by the Company.
The Ore Reserve Statement is a key milestone for the Project and supports the economic viability of mining at least 2.5Bt of the 4.7Bt Measured and Indicated Mineral Resource. The significant scale of the Ore Reserve supports the Company's confidence in the quality of the Zanaga Project and is indicative of the rigorous standard that has been applied to all study work conducted to date.
As stipulated by the JORC Code, a Probable Ore Reserve is of sufficient quality to serve as the basis for a decision on the development of the deposit. Based on the studies performed a mine plan has been determined that is technically achievable and economically viable. The level of definition and size of the reserves will be the subject of further review as the Feasibility Study progresses.
Clifford Elphick, Non-Executive Chairman of ZIOC, commented:
"The outcomes of the Pipeline PFS announced in October have resulted in a substantial maiden Ore Reserve being defined on the Zanaga Project and continues to confirm our belief that the Zanaga Iron Ore Project is one of the most attractive iron ore projects globally.
Importantly, as we enter the Feasibility Study stage, we have already defined sufficient Ore Reserves to support the planned production of 30Mpta of high quality 68% Fe pellet feed product over a 30 year mine life."
Ore Reserve Statement
Classification | Tonnes (Mt) | Fe (%) |
Probable Ore Reserves | 2,500 | 34 |
Proved Ore Reserves | - | - |
Total Ore Reserves | 2,500 | 34 |
Notes:
1. Metal Price Assumptions USD$85/dmt FOB at Pointe Noire, Republic of Congo, in line with consensus pricing.
2. Discount Rate 10%
3. Mining Dilution 5%
4. Mining Recovery 95%
The Ore Reserve estimate was undertaken by independent consultants, CSA Global Pty Ltd ("CSA") and is based on the 30Mtpa Pipeline Pre-Feasibility Study and the 6.8Bt Mineral Resource recently announced by the Company.
Mineral Resource
Classification | Tonnes (Mt) | Fe (%) | SiO2 (%) | Al2O3 (%) | P (%) | Mn (%) | LOI (%) |
Measured | 2,400 | 34.0 | 43.0 | 3.3 | 0.048 | 0.106 | 1.403 |
Indicated | 2,290 | 30.8 | 46.6 | 3.0 | 0.052 | 0.116 | 0.701 |
Inferred | 2,100 | 31 | 46 | 3 | 0.05 | 0.12 | 0.90 |
Total | 6,800 | 32 | 45 | 3 | 0.05 | 0.11 | 1.01 |
Reported at a 0% Fe cut-off grade within an optimised Whittle shell representing a metal price of 130 USc/dmtu. The Mineral Resource was announced on 4 September 2012 and available on the Company's website (www.zanagairon.com)
The Mineral Resource was estimated as a block model within constraining wireframes based upon logged geological boundaries. Tonnages and grades have been rounded to reflect appropriate confidence levels and for this reason may not sum to totals stated.
The Ore Reserves and Mineral Resource announced by the Company are reported in accordance with the terms and definitions included in the JORC Code as at 29 August 2012.
The information in this statement that relates to Ore Reserves is based on information compiled by Kent Bannister, of CSA Global Pty Ltd. Kent Bannister takes overall responsibility for the Report as Competent Person. He is a Fellow of The Australasian Institute of Mining and Metallurgy 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 JORC Code. The Competent Person, Mr Kent Bannister, has reviewed this Ore Reserve Statement and given his permission for the publication of this information in the form and context within which it appears.
For further information please contact:
Zanaga UK Services Limited
Corporate Development and Andrew TraharInvestor Relations Manager +44 20 7399 1105
Liberum Capital Limited
Nominated Adviser, Financial Chris Bowman, Christopher Britton
Adviser and Joint Corporate Broker and Christopher Kololian
+44 20 3100 2000
Citigroup Global Markets Limited
Joint Corporate Broker Alex Carter
+44 20 7986 4000
Pelham Bell Pottinger
Financial PR James MacFarlane and Daniel Thöle
+44 20 7861 3232
About us:
Zanaga Iron Ore Company Limited is listed on AIM, ticker: ZIOC and is the owner of 50% less one share interest in the Zanaga Iron Ore Project based in the Republic of Congo (Congo Brazzaville) through its joint venture partnership with Xstrata plc. The Zanaga Iron Ore Project is one of the largest iron ore deposits in Africa and has the potential to become a world-class iron ore producer.
Glossary
AL2O3 | Alumina (Aluminium Oxide) |
Fe | Iron |
JORC Code | the 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves as published by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia |
LOI | Loss on ignition |
Mineral Resource | a concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for 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, in order of increasing geological confidence, into Inferred, Indicated and Measured categories |
Mn | Manganese |
Ore Reserve | the economically mineable part of a Measured and/or Indicated 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. Ore Reserves are sub-divided in order of increasing confidence into Probable Ore Reserves and Proved Ore Reserves. A Probable Ore Reserve has a lower level of confidence than a Proved Ore Reserve but is of sufficient quality to serve as the basis for a decision on the development of the deposit. |
P | Phosphorus |
SiO2 | Silica |