TIDMBZM
RNS Number : 8644K
Bellzone Mining PLC
22 July 2011
22 July 2011
Bellzone Mining plc
("Bellzone" or the "Company")
AGM
-- Project on schedule to achieve production Q1 2012
-- Phase I Company (tonnage) estimates on track for July 2011
announcement
-- Port feasibility study reviewed and budget submission due end
July 2011
-- Negotiations underway for tugs and barges
-- Negotiations with haulage fleet suppliers
-- First 24km of road construction progressing to schedule
-- Second road construction contract for 14.6km awarded and
contractors mobilised to site
-- Large oxide potential at Santiguiyah identified
Bellzone Mining plc (AIM:BZM) is pleased to report that the
Forecariah JV Project (the "JV") with China International Fund
("CIF") in the Republic of Guinea, West Africa, is on schedule to
commence production of iron ore in Q1 of 2012.
Resource Development
Yomboyeli
Bellzone will announce an internal volumetric and estimated
tonnage in July 2011 with an internal resource classification
expected in Q3 2011. Additional drilling resources have been
secured to accelerate the resource development programme. These
include;
-- The three additional diamond drill rigs that have been
purchased and are confirmed due on site in July 2011.
-- An additional RC rig is now on site to expedite the drilling
programme.
-- Drill samples have arrived at the independent laboratory in
Perth for processing.
Ongoing exploration and mapping has identified additional
prospective targets of oxide and magnetite that are outside the
currently mapped 2.7km(2) oxide area which is under
development.
Santiguiyah
As announced in January 2011, a large prospective oxide
potential was mapped in the Santiguiyah area 15 km north of
Yomboyeli. Recently completed petrography, bench scale test work
and an optimistic review from an independent technical expert
indicate has led to detailed metallurgical test work on the oxide
material to commence on a bulk sample at the independent laboratory
in Perth.
A shallow drilling program will commence as soon as possible to
define the resource. The vast area of the Santiguiyah oxide could
prove to be a significant value add to the Forecariah resource base
potential.
Road Development
The 76km road route comprises 20km of new road required to
bypass villages, and 56 km of existing road. The existing road
upgrade and new road construction to support the bulk ore road
trains will be done in four sections.
China Communication Construction Company's ("CCCC") have been
awarded a construction management contract to provide construction
management, cost control and schedule management support and
expertise to the road development project. The CCCC team will
support the BZM management team in achieving the project
objectives.
Construction of the 24km section of road from Konta (port
location) to the Woula village commenced in June 2011 by Entreprise
Generale des Travaux et Transports ("EGTT"), a Guinean contractor.
12.2km of road has been cleared and grubbed, borrow pits for road
base have been established and road base work has started.
Approval to start construction on the 14.6km section between
Yomboyeli and Dambaya has been received. SAMACO BTP ("SAMACO"), a
Guinean contractor has been awarded the works and is mobilising to
site. Construction has commenced with grubbing and clearing.
Approvals and tendering for the remaining sections of road are in
progress with all construction expected to be awarded and underway
in August.
The tender details for a LiDar study for the site and the
pathway to the proposed rail connection, to replace the haul road
as the Kalia rail is commissioned, has been prepared and
issued.
Konta Port Development
CCCC Second Harbour Consultants Co. have completed and issued
the draft feasibility study. This has been reviewed and final
estimates and schedules will be completed as planned by the end of
July 2011 for Board submission and approval.
Negotiations to appoint an engineering specialist, for the role
as the Port Engineering Procurement Construction and Management
("EPCM") consultant, have been completed. Contracts are expected to
be finalised by end of July 2011.
Approval to start site acquisition and clearance has been
submitted and is expected to commence in August 2011.
The tugs and barges required for the trans-shipping operation
have been sourced and commercial negotiations have commenced.
Marine inspection of the vessels will take place by month end.
Mine and Plant Development
The Bellzone and CIF mining team has completed:
-- Plant layouts and flowsheet have been finalised.
-- Tenders for the crushing and screening plant have been
prepared and issued to four potential suppliers and final
negotiations are underway with the preferred vendor, with contracts
expected to be placed before the end of July.
-- Discussions are in progress with experienced and reputable
EPCM provider to develop and install the mine and the process
facilities. Detailed proposal expected by end of July 2011.
-- Preliminary mining fleet selected based on assumed mining
requirements and initial resource data. Tenders have been prepared
for issue to potential suppliers.
-- Suppliers for initial haulage truck fleet identified and
evaluation in progress. Delivery lead times between 30 days to 8
weeks. Contract expected to be awarded shortly.
-- Key assumptions are being reviewed by a consulting
organisation as data becomes available.
Support infrastructure
The project support infrastructure continues to progress. In
addition to the facilities announced last month, the JV has:
-- Established a Forecariah and Yomboyeli site office, with
internet and network connectivity.
-- Completed accommodation for an additional 14 people.
-- Paid compensation to landowners for exploration and survey
access.
Nik Zuks, Chief Executive Officer, commented: "The progress made
reiterates how well the JV team is working and the strong support
being received from the Guinea government. Our commitment to
production in Q1 2012 remains the common goal and our schedule
remains on track. I am looking forward to providing regular updates
on this fast developing project."
The mineral resource information disclosed in this announcement
has been reviewed by Peter Batten, BAppSc, member of the
Australasian Institute 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
Nik Zuks/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 7920 3150
PPR (Australia)
David Ikin +61 (0) 8 9388 0944 / +61 (0)
408 438 772
Bellzone Mining Plc
Bellzone Mining plc is an exploration and resource development
company with iron ore and nickel / copper permits in the Republic
of Guinea, West Africa.
Kalia Mine
The Company's flagship project, the Kalia Mine Project, has a
Company estimated magnetite resource potential of 6.4 billion
tonnes, which includes a 3.74 billion tonnes JORC resource, 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 is on schedule to start in Q1 2012 at the Yomboyeli
target with an initial production rate of 3-4 mtpa of oxide ore,
ramping to a rate of 10 mtpa in 2013. Resource development is
underway, with all drill holes intersecting oxide mineralisation. A
surface oxide cap of between 8m and 33m has been identified by the
drilling programme. The ore will be transported 76km by bulk ore
road trains to a transhipping port at Konta, on the south coast of
Guinea. From the port loadout facilities the ore will be barged to
deep water prior to loading onto bulk sea carriers. Construction on
the first 24km of road from the port location of Konta has started.
Construction on the port is due to start in August 2011.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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