Completion of Kalia SEIA and EIA studies (1251J)

TIDMBZM

RNS Number : 1251J

Bellzone Mining PLC

27 June 2011

27 June 2011 - 7:00 am

Bellzone Mining plc

("Bellzone" or the "Company")

Socio Economic and Environmental Studies Complete

-- Studies completed on schedule

-- No issues to prevent development noted

-- Submission to Government in Q3 2011

Bellzone Mining plc (AIM:BZM), 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, is pleased to announce the completion of the Socioeconomic ("SEIA") and Environmental studies ("EIA") for the Kalia mine site.

Bellzone awarded the contract to SGS Environment ("SGS") to undertake the socio economic and environmental studies at Kalia in May 2010. SGS have a proven track record in the country with other major international companies and employed Guinean nationals at all levels during the studies. These studies formed part of the long lead items of the definitive feasibility study ("DFS") and were scheduled for completion in Q2 2011.

The draft study reports have been reviewed by all functional leads within Bellzone and have been returned to SGS as final reports. SGS will now manage the documents through the various government processes leading to the issue of the relevant permits for the Kalia Mine Project.

Gino Macchiusi, Kalia Project Manager, commented: "Completing the SEIA and EIA studies for the Kalia Mine Project is a key milestone in our development schedule. We are happy with the outcome of the work done by SGS and expect there to be no obstacles to having the permits approved. We look forward to having permits in place to start the early works at the Kalia Mine Project by year end."

 
 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 
 
 Jeremy Wrathall 
 
 Tavistock Communications (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 iron ore production benchmarked to market rates on terms to be finalised 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 most favoured customer and to be charged transport rates equal or less than 3rd party 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

MSCEANKKADDFEFF

Bellzone Mining (LSE:BZM)
Historical Stock Chart
From Jun 2024 to Jul 2024