TIDMBZM
RNS Number : 4587L
Bellzone Mining PLC
01 August 2011
01 August 2011
Bellzone Mining plc
("Bellzone" or the "Company")
Forecariah JV Resource Development
-- 8 million m(3) of oxide cap in maiden volume at Yomboyeli
ridge
-- Average thickness between 8 and 12 metres
-- Volume identified on 1km(2) of the initial 2.7km(2) of mapped
oxide at surface
-- Internal resource estimates based on ore body modelling with
grades on track for September 2011
Bellzone Mining plc (AIM:BZM) is pleased to report an initial
iron oxide cap volume of 8.0 million m(3) at the Yomboyeli site of
the Forecariah JV Project (the "JV") with its partner, China
International Fund ("CIF"), in the Republic of Guinea, West
Africa.
The initial volume is based on drilling over 1km(2) of the
2.7km(2) of mapped oxide at surface on the Yomboyeli site. Ongoing
exploration and mapping has identified additional prospective
targets of oxide and magnetite that are outside the currently
mapped 2.7km(2) oxide that is under development.
The iron oxide cap in the mapped 2.7km(2) area is a product of
the Marampa beds. The Marampa beds extend from within Serra Leone
to 8km NNW of Yomboyeli. Of the 8km strike of the prospective
Marampa Beds within the JV only Yomboyeli and Yaneyah have been
subjected to any degree of exploration.
Beneath the oxide layer, drilling has identified parallel zones
of iron schists in the Marampa beds.
First production will target the 2 million m(3) of higher tenor
material identified within the larger oxide cap. Bulk density
readings ranging from 2.6t/m(3) through 3.9t/m(3) have been
obtained from the oxide material in this area.
Two reverse circulation ('RC') rigs are currently conducting
infill drilling of the Yomboyeli ridge. One rig will switch in
approximately two weeks to a program extending the oxide package. A
third RC drill rig is expected on site within two weeks.
The drilling operations at Yomboyeli are on track to provide
resource information for detailed mine planning and production
scheduling by October this year.
Work done on the Phase I resource to date includes:
-- 43 diamond drill ("DD") holes
-- 3,037 metres in 41 trenches
-- 30 RC drill holes.
Samples from the Phase I programme are being processed by an
independent assay laboratory in Perth. Phase II of the RC drilling
programme will infill the Phase I drilling profiles and consists of
117 drill holes. The results of the Phase II work and internal
resource estimates based on ore body modelling with grades will be
announced in September 2011.
Nik Zuks, Chief Executive Officer, commented: "I am very pleased
with our progress on all fronts, work on the project continues at a
fast pace and today's announcement is the first step in allowing us
to model an internal resource for September. The road development
is ahead of schedule and key contracts for equipment procurement
and port construction will be awarded over the next few weeks. All
aspects are on schedule to deliver on our target of first ore being
shipped in Q1 2012."
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 +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 (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 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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