TIDMBZM
RNS Number : 9401I
Bellzone Mining PLC
23 June 2011
22 June 2011 - 7:00 am
Bellzone Mining plc
("Bellzone" or the "Company")
Kalia Magnetite Tonnage Increase
-- Estimated Kalia I magnetite tonnage increases 71% to 6.4
billion tonnes
-- JORC measured and indicated upgrade on track for Q3 2011
-- 10,000 metre resource extension programme underway for
completion by year end, JORC resource expansion expected Q1
2012
-- Infill drilling programme on schedule
A drilling programme at Bellzone Mining plc's (AIM:BZM) Kalia
Mine in the Republic of Guinea, West Africa, has indicated a 71%
increase in the Company's estimate of the magnetite tonnage
available from 3.74 billion tonnes to 6.4 billion tonnes, placing
Kalia amongst the largest iron ore deposits of its kind in the
world.
An 18,000m diamond drilling ("DD") infill programme commenced in
Q3 2010 to increase the existing 690 million tonne measured and
indicated ("M&I") component of the 3.74 billion tonne magnetite
JORC resource. The Company is pleased to announce that the work is
proceeding to schedule and the programme is on track to deliver an
increased M&I JORC magnetite resource in Q3 2011.
The infill DD programme has defined an extension and thickening
of the known magnetite mineralisation to the south and north of the
central section of the Kalia I magnetite JORC.
The 22,000m reverse circulation ("RC") drilling programme for
the oxide JORC resource (the initial results of which were
announced on 9 May 2011) revealed additional magnetite
mineralisation and extensions to depths of 400m north west of the
existing Kalia I magnetite JORC resource. This additional
delineation of magnetite material along strike extends the
previously delineated 6km Kalia I magnetite JORC resource by
1km.
Based on Bellzone's internal geological analysis and modelling
of this latest data, the Company has estimated a magnetite tonnage
increase from 3.74 billion tonnes to 6.4 billion tonnes, along
approximately 7km of the 19km Kalia I strike. The criteria used to
complete this estimation followed the process used by the Company's
independent consultants, CSA Global, in previous JORC compliant
resource estimates. The Bellzone geological model will be provided
to CSA Global and will form the basis of the Q3 2011 JORC magnetite
update.
During H2 2011, Bellzone will continue with a 10,000m magnetite
resource extension DD programme, which will add approximately a
further 1km to the currently projected 7km Kalia I magnetite strike
length and will extend the forecast tonnage depths to the mine plan
pit bottom at approximately the 100m relative level depth.
A Company estimation of the proposed H2 extension programme has
indicated potential to increase the Kalia I magnetite resource to
more than 7 billion tonnes. The JORC statement on the H2 extension
drilling programme is expected to be announced in Q1 2012.
Nik Zuks, Chief Executive Officer, commented:
"Magnetite ore is most suitable for processing into iron ore
pellets for use in the production of premium quality, low impurity
steel and currently accounts for approximately 50% of global iron
ore production. Magnetite concentrate generally earns a premium
price from steel mills because of the high iron content and low
impurities compared to benchmark DSO hematite products."
"It is well known within the industry that hematite grades are
declining and impurity levels are rising while the demand for
quality, premium steel from China and India is continuing to
increase which we believe will mean that a high grade magnetite
concentrate such as ours will become an increasingly sought after
product."
"The quantity and quality of the Kalia magnetite places Kalia
amongst the largest iron ore deposits of its kind in the world and
ensures that Bellzone is in a position to supply the market for
many years to come."
The tonnage estimation information disclosed in this
announcement has been reviewed by Bellzone's Exploration Manager,
Bernhard Neehoff BSc. Post Grad Dip Sc.; a member of the
Australasian Institute of Mining and Metallurgy. He has sufficient
experience relevant to the style of mineralisation and type of
deposit under consideration and to the activity which is being
undertaken, to qualify as a Competent Person for the purposes of
this announcement.
Enquiries:
Bellzone Mining plc
Graham Fyfe / Terry Larkan +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
Simon Matthews
Tavistock (UK)
Jos Simson/Paul Youens +44 (0)20 7 9203 150 / +44 (0)7899
870 450
PPR (Australia)
David Ikin +61 (0) 8 9388 0944 / +61 (0)
408 438 772
Bellzone Mining Plc
Bellzone Mining plc is the iron ore and nickel/copper company
developing the Kalia Mine Project, the Forecariah JV and the Sadeka
nickel/copper project in the Republic of Guinea, West Africa.
Kalia Mine
The Company's flagship project, the Kalia Mine Project, has a
magnetite JORC resource of 3.74 billion tonnes, located on the
Kalia I prospect and an initial oxide JORC resource producing 43
million tonnes of 58% product from just 4.3% of the 55km(2) 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.
Bellzone plans to develop the Kalia Mine Project in two
stages;
-- commencing with a 20mtpa oxide production facility in 2014
and a 10mtpa magnetite concentrator in 2015,
-- stage two increases oxide output to 30mtpa in 2017 and
doubles the concentrate output to 20mtpa in 2018.
CIF - Project, Financing & Infrastructure Partner
Bellzone has a Definitive Agreement ("the 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 a
commercially operated rail and port infrastructure that will enable
Bellzone to export production from Kalia Mine Project. The
infrastructure is being developed by Kalia Horizon Minerals Pte
Limited 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.
Forecariah JV
In addition to the Kalia Mine Project, Bellzone and CIF have
fully funded a joint venture to undertake the accelerated
exploration and development programme at CIF's Forecariah iron
permits that lie between 30 and 80 kms from the Guinea coast.
Production will start in Q1 2012 and will target an initial
production rate of 3-4 mtpa of oxide ore ramping to a rate of 10
mtpa in 2013.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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