28 Aug 2008 07:00
28 August 2008
Ferrexpo announces an additional 464 million tonnes of reserves at GPL
Ferrexpo plc ("Ferrexpo" or the "Group") is pleased to announce a 95% increase in proved and probable reserves within its Gorishne-Plavninskoye and Lavrikovskoye ("GPL") deposits. The results are based on mine design and optimisation undertaken to a pre-feasibility level as part of the project to expand and extend the Group's existing GPL operations.
Further to the resource announcement of June 3rd 2008, the Group engaged Turgis (Pty) Ltd ("Turgis") to assist it in revising the GPL mine plan. This work is now completed and Turgis have confirmed that the proved and probable reserves associated with the GPL mine have been increased by 95% to 955mt, from 491mt at the time of the Group's Listing.
As previously reported, 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 primary reason for the increase in resources is due to an extension in the depth limit to which resources have been declared in accordance with the JORC code.
Mike Oppenheimer, Ferrexpo's Chief Executive Officer, said:
"We have delivered on the promise we made at our listing to complete the engineering review and optimisation of our GPL mining operations. This has resulted in an almost doubling of proven and probable reserves and the production expansion project already announced. We expect to complete the Feasibility Studies for the upgrade of our GPL beneficiation plants by the end of next month. Together, these initiatives provide a robust underpinning for our operating cashflows and reinforce our confidence in our financial capacity to move ahead with our new mining projects."
Revised reserve statement
| Gorishne- | 1 January 2008 | 1 January 2007 | |||
| Plavninskoye | Tonnage (mt) | Grade Fe Total (%) | Tonnage (mt) | Grade Fe Total (%) | Change |
| Proved | 251 | 27 | 239 | 30 | 5% |
| Probable | 547 | 30 | 160 | 30 | 242% |
| Total | 798 | 29 | 399 | 30 | 100% |
| Lavrikovskoye | 1 January 2008 | 1 January 2007 | |||
| Tonnage (mt) | Grade Fe Total (%) | Tonnage (mt) | Grade Fe Total (%) | Change | |
| Proved | 43 | 32 | 38 | 30 | 13% |
| Probable | 113 | 31 | 53 | 29 | 113% |
| Total | 157 | 32 | 92 | 30 | 71% |
Previously announced 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.
Ferrexpo (FXPO)