TIDMAMI
RNS Number : 9074G
African Minerals Ltd
13 May 2014
13 May 2014
African Minerals Limited
("African Minerals", "AML", or "the Company")
Increase in DSO Resource
African Minerals Limited is a mineral exploration, development
and mining company, and is the developer and operator of the
Tonkolili iron ore mine in Sierra Leone. The Company today provides
an update to its Direct Shipping Ore ("DSO") resource at
Tonkolili.
Highlights
-- JORC(1) Compliant DSO Mineral Resource Estimate(2) updated to
142.1 Million tonnes ("Mt") grading 57.0% iron as at 31 March
2014.
-- 94% of the total Mineral Resource Estimate classified in the
Measured and Indicated categories.
-- The delineation of an additional 59.5Mt of Direct Shipping
Ore(2) will considerably extend the life of DSO operations.
-- With a near term expansion of production capacity to 25Mtpa,
and with saprolite processing currently expected to commence in
2016, the DSO operations (which will run concurrently with
saprolite processing) will be expected to extend to circa 2020.
-- An updated saprolite resource, including optimised
metallurgical parameters (yield, recovery and concentrate grade),
is expected to be available by end Q2 2014.
This announcement presents an updated JORC Compliant Mineral
Resource Estimate valid as of 31 March 2014, that supersedes AML's
last published JORC Compliant Mineral Resource Estimate(3) of
126.5Mt of DSO grading 58.1% Iron, announced on 16 December
2010.
AML is pleased to report that the JORC compliant DSO Resource
has been updatedby Independent Consultants SRK Consulting (UK) Ltd
to 142.1Mt grading 57.0% Iron, 2.9% Silica, 6.6% Alumina, and 0.08%
Phosphorus. The Mineral Resource Estimate is detailed in the table
below(4) . SRK's full report will be made available for review on
AML's website in due course.
MATERIAL RESOURCE CATEGORY TONNES FE(TOT) SiO(2) Al(2) P
(Mt) % % O(3) %
%
----------------------- ------------------- ------- -------- ------- ------ -----
Haematite Cap (>53.5%
Fe Total) MEASURED 99.6 57.4 2.9 6.3 0.08
----------------------- ------------------- ------- -------- ------- ------ -----
INDICATED 33.9 56.4 2.9 7.2 0.09
------------------------------------------- ------- -------- ------- ------ -----
INFERRED 8.5 55.6 2.8 8.0 0.08
------------------------------------------- ------- -------- ------- ------ -----
TOTAL 142.1 57.0 2.9 6.6 0.08
------------------------------------------- ------- -------- ------- ------ -----
This updated Mineral Resource Estimate reflects that 43.9Mt(5)
of DSO material had been mined since the commencement of production
up until 31 March 2014.
The Mineral Resource Estimate also reflects: The results of
34,000m of supplementary Mineral Resource definition drilling that
has been completed at the Simbili, Numbara, Marampon, and Kasafoni
project areas since the last estimate was derived; a revised
cut-off grade of 53.5% iron, compared to 56.5% previously, to
reflect specifications of the Company's sales agreements; and
includes a portion of material previously reported as "High Grade
Saprolite Ore".
The delineation of an additional 59.5Mt of DSO has increased the
remaining tonnage to 142.1Mt after mining depletion and is expected
to extend the life of DSO operations which will run concurrently
with saprolite processing to circa 2020.
As previously announced, AML expects to increase production
capacity from 20Mtpa to 25Mtpa and to establish its first saprolite
concentrator to enter production at 8-10Mtpa in H1 2016. The
Company is currently assessing the metallurgical properties of the
saprolite component of the Mineral Resource, which was reported in
December 2010 at 1.1Bnt, and intends to produce a formal Mineral
Resource update regarding the saprolite component of the Tonkolili
project shortly. This will also feature optimised metallurgical
parameters including yield, recovery, and concentrate grade.
Bernie Pryor, Chief Executive Officer of African Minerals,
said:
"The increase in the Tonkolili DSO resource is a significant
event. The increased life of the DSO resource, now with over 90%
classified in the Measured and Indicated resource categories, will
allow the Company to produce a DSO product to 2020, and to take a
longer term view regarding the current operations. Production of
DSO will be concurrent with our near-term plans to expand
production to 25Mtpa and to move into a higher value saprolite
hematite concentrate product from 2016.
"We are, of course, excited to embark on this next stage of our
expansion, for which we expect to provide more information in due
course. The first step of this expansion will be the publication of
an updated saprolite resource later this quarter, incorporating the
adjustments to the DSO resource as announced today."
Notes & Definitions:
(1) The Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves ('JORC'), 2012 edition.
(2) Using a 53.5% iron cut-off.
(3) Using a 56.5% iron cut-off.
(4) The derivation of the total Mineral Resource involves the
calculation of totals and weighted averages that involve a degree
of rounding for presentation purposes. SRK does not consider any
such instances of numeric rounding to be material.
(5) JORC compliant Mineral Resource Estimates and mining
depletion are reported as dry tonnes
Competent Persons
The information in this press release that relates to Mineral
Resources is based on information compiled under the direction of
Mr Howard Baker, who is a Fellow of the Australasian Institute of
Mining and Metallurgy ("AusIMM"). Mr Baker is a full time employee
of SRK Consulting (UK) Ltd and has sufficient experience which is
relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Mr Howard Baker has reviewed this
press release and consents to the inclusion in the press release of
the matters based on his information in the form and context in
which this appears.
In addition to the above, this press release has been compiled
under the direction of Dr. Mike Armitage, who is a Chartered
Engineer and a Chartered Geologist, a Fellow of the Geological
Society and a Member of the Institute of Materials, Minerals and
Mining. Dr. Armitage is a full time employee of SRK Consulting (UK)
Ltd and has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. Dr. Armitage has reviewed this press release and
consents to the inclusion in the press release of the matters based
on his information in the form and context in which this
appears.
Contacts:
African Minerals Limited
+44 20 3435 7600
Mike Jones
Tavistock Communications
+44 20 7920 3150
John West / Jos Simson / Nuala Gallagher
Jefferies
+44 20 7029 8000
Nick Adams / Alex Collins
About African Minerals
African Minerals operates the Tonkolili Iron Ore Project (the
"Project") in Sierra Leone, with a JORC compliant resource of
12.8Bnt. The Project, which currently has a 60+ year mine-life, is
being developed in a number of staged expansions. In 2013, African
Minerals completed sales of 12.1Mt to its customers. The current
year sales guidance is for 16-18Mt of exports as the operations
focus on operating at the 20Mtpa run rate design capacity.
Phase II expansion contemplates the production of an expanded
tonnage including the establishment of a high grade concentrate
product with the project ramping up to 25Mtpa.
The Company has also developed significant port and rail
infrastructure to support the operation of the Project, via its
subsidiary African Rail and Port Services (SL) Limited ("ARPS"), in
which the Government of Sierra Leone ("GoSL") has a 10% free
carried interest.
The Project companies are currently owned 75% by AML, and 25% by
Shandong Iron and Steel Group ("SISG"), except for ARPS, which is
currently owned 75% by AML and 25% by SISG, with the GoSL having
the right to a 10% free carried interest from AML.
www.african-minerals.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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