TIDMBZM
RNS Number : 8675O
Bellzone Mining PLC
26 September 2011
26 September 2011
Bellzone Mining plc
("Bellzone" or the "Company")
Significant Increase in Kalia Mine JORC Resource
Highlights:
-- Total Kalia I JORC magnetite mineral resource increased to
6.16 billion tonnes
- 63% increase in the measured and indicated JORC resource of
the Kalia I banded iron formation ("BIF") magnetite from 670mt at
27.7% Fe to 1,095mt at 27.4% Fe
- 65% increase in overall Kalia I magnetite JORC resource (BIF
and Schist) from 3.74 billion tonnes to 6.16 billion tonnes
-- 7km of the 19km Kalia I strike has been drilled to date
-- Bulk testwork has shown the magnetite can be readily
beneficiated using a standard grinding and magnetic process to
produce a magnetite concentrate of +68% Fe
Bellzone Mining plc (AIM:BZM), is pleased to announce an overall
65% increase to 6.16 billion tonnes in the total JORC magnetite
resource at its 100% owned Kalia Mine Project in Guinea, West
Africa. The updated JORC resource was prepared by independent
consultant CSA Global UK.
The Kalia Mine Project has a current magnetite iron ore resource
of:
Kalia Mineral Resource Estimate as at 23 September
2011
JORC Resource Class Magnetite Billion Fe%
--------------- ---------- ------------
Host Material Tonnes
--------------- ---------- ------------
MEASURED BIF 0.24 27.9
--------------- ---------- ------------
INDICATED BIF 0.85 27.3
--------------- ---------- ------------
MEASURED + INDICATED BIF 1.095 27.4
--------------- ---------- ------------
INFERRED BIF 3.54 25.4
--------------- ---------- ------------
SUB - TOTAL BIF RESOURCE BIF 4.63 25.9
--------------- ---------- ------------
INFERRED SCHIST 1.53 9.6
--------------- ---------- ------------
TOTAL JORC RESOURCE BIF + SCHIST 6.16 21.9
--------------- ---------- ------------
EXPLORATION POTENTIAL BIF + SCHIST 1.0 - 1.7 15.00-25.00
--------------- ---------- ------------
The Company has now completed an 18,000m diamond drilling ("DD")
infill programme, which commenced in Q3 2010, which resulted in the
increase to the magnetite measured and indicated JORC resource.
The competent BIF JORC resource has increased from 3.05 billion
tonnes, grading at 25.8%Fe to 4.63 billion tonnes grading at 25.9%
Fe, with the softer lower grade magnetite schist inferred JORC
resource increasing from 690 million tonnes to 1.53 billion
tonnes.
The next phase of the Company's magnetite extension DD programme
is expected to add a further 1km to the drilled strike length and
to extend the resource depths. The results of the magnetite
extension DD programme are expected in Q2 2012. The exploration
potential of an additional 1.0 to 1.7 billion tonnes will be
targeted as part of this ongoing programme.
Resource classification was based on a number of criteria,
including grade interpolation parameters, geology continuity, drill
core samples, survey and bulk density data, the drilling grid,
Davis Tube Magnetite recovery test work and an updated preliminary
Whittle optimisation assessment completed to determine project
economics. The bulk test work assays and Davis Tube results provide
the following product composition:
Kalia Mineral Resource Estimate Concentrate Potential
Mass recovery
Domain % Fe% SiO2% Al2O3% P% S%
---------------- ------- ------ ------- ----- -----
BIF 31.86 68.74 3.91 0.14 0.01 0.29
---------------- ------- ------ ------- ----- -----
Schist 4.14 63.66 4.34 0.29 0.01 0.17
---------------- ------- ------ ------- ----- -----
537 Davis Tube Results were completed on the BIF and schist
domains to support the JORC estimate, with an ongoing testwork
programme in place to further refine the quality and grade versus
grind size to ensure the optimum product will be produced from the
Kalia Mine.
All assay and metallurgical test work was undertaken by
independent laboratories in Perth, Western Australia
The Kalia Mine Project has a current total iron ore resource
of:
Tonnes Product Tonnes Product Grade
'm Grade Fe 'm Fe
Inferred Oxide JORC
Resource 193 38.6% 70.1 58.0%
------- --------- --------------- --------------
Inferred SBIF JORC
Resource 92.5 36.5% 37* 63.4%*
------- --------- --------------- --------------
Measured, Indicated and
Inferred BIF JORC
Resource 4,630 25.9% 1,475** 68.7%**
------- --------- --------------- --------------
Inferred Schist JORC
Resource 1,530 9.8% 63.3* 63.7%*
------- --------- --------------- --------------
*estimations have been made on preliminary testwork results
** results supported by bulk testwork
Nik Zuks, Chief Executive Officer, commented: "I am pleased the
target of defining one billion tonnes of measured and indicated BIF
JORC resource was achieved as planned. This significant magnetite
increase has been established on the back of our oxide JORC
programme and further validates the creation of one of Africa's
largest iron ore projects.
"The JORC increase supports our own estimate of some 10 billion
tonnes of BIF across the Kalia site and the growing demand for the
high quality magnetite concentrate in the steel industry, based on
better furnace efficiencies and lower greenhouse emissions,
underlines the strategic importance of Kalia. We now have JORC
resources of more than 1.4 billion tonnes of contained iron and, in
addition to the valuable partnership with China International Fund
Limited, and the Forecariah JV project being on track for near-term
production in Q1 of 2012, the management and operational team are
continuing to work efficiently to schedule."
Enquiries:
Bellzone Mining plc
Nik Zuks/Graham Fyfe +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
CSA Global UK, the independent geologists have established and
certified the Company's JORC complaint oxide, Supergene BIF and
magnetite resource for Kalia.
The mineral resource information disclosed in this announcement
has been reviewed by Galen White (MAusIMM), Principal Consultant of
CSA Global. Mr White is a member of the Australasian Institute of
Mining and Metallurgy and is qualified as a Competent Person in
terms of the "Australasian Code for Reporting of Exploration
Results, Mineral resources and Ore Reserves (JORC Code 2004
Edition). Mr White has sufficient experience 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 for the purposes of this announcement.
About 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, is
planned to commence production in 2014 and be producing iron ore
and iron ore concentrate at a rate of 50 million tonnes per annum
in 2018. The Kalia Mine Project has a 6.16 billion tonnes magnetite
JORC resource and an oxide JORC resource of 193 million tonnes. A
Supergene BIF JORC resource of 92.5 million tonnes at 36.5% Fe has
been delineated and shows the potential to upgrade to produce 37
million tonnes of 63% Fe material. The oxide and Supergene BIF
resources have been established from just 10.5% 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.
CIF - Project, Financing & Infrastructure Partner
Bellzone has a Definitive Agreement ("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
commercially operated rail and port infrastructure that will enable
Bellzone to export production from the Kalia Mine Project. The
infrastructure is being developed by Kalia Horizon Minerals Pte
Limited, an entity 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
Bellzone and CIF also 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 kilometres
from the Guinea coast. Production is scheduled to start in Q1 2012
with an initial production rate of 3-4 mtpa of oxide ore, ramping
to a rate of 10 mtpa in 2013.
Other activities
Bellzone has completed a mapping and surface sampling programme
identifying highly prospective targets at its Sadeka Nickel/Copper
Project. A VTEM aerial survey is currently being conducted to
further define areas for a targeted drilling programme.
Bellzone has acquired the rights to buy 70% of Compagnie Miniere
de L'Ouest Africain SA, incorporated and holding tenements in Mali.
The company is undertaking geological studies on the tenements
which are prospective for iron ore before making an investment
decision.
GLOSSARY
"Al2O3" Aluminium Oxide
"BIF" banded iron formation
"Fe" Chemical symbol for Iron
"Indicated Mineral Resource" as defined in the JORC Code,
is that part of a Mineral Resource
which has been sampled by drill
holes, underground openings
or other sampling procedures
at locations that are too widely
spaced to ensure continuity
but close enough to give a reasonable
indication of continuity and
where geoscientific data are
known with a reasonable degree
of reliability. An Indicated
Mineral Resource will be based
on more data and therefore will
be more reliable than an Inferred
Mineral Resource estimate
"Inferred Mineral Resource" as defined in the JORC Code,
is that part of a Mineral Resource
for which the tonnage and grade
and mineral content can be estimated
with a low level of confidence.
It is inferred from the geological
evidence and has assumed but
not verified geological and/or
grade continuity. It is based
on information gathered through
the appropriate techniques from
locations such as outcrops,
trenches, pits, workings and
drill holes which may be limited
or of uncertain quality and
reliability
"JORC" Joint Ore Reserve Committee
An internationally recognised
method of classifying mineral
resources
"Magnetite" An oxide mineral (Fe3O4). The
most common ferromagnetic mineral
and principal ore
"Measured Mineral Resource" defined in the JORC Code, as
that part of a Measured Mineral
Resource for which the resource
has been intersected and tested
by drill holes, underground
openings or other sampling procedures
at locations which are spaced
closely enough to confirm continuity
and where geoscientific data
are reliably known. A Measured
Mineral Resource estimate will
be based on a substantial amount
of reliable data
"Mineral Resource" a concentration or occurrence
of material of intrinsic economic
interest in or on the earth's
crust in such a form that there
are reasonable prospects for
the eventual economic extraction.
The location, quantity, grade,
geological characteristics and
continuity of a mineral resource
are known, estimated or interpreted
from specific geological evidence
and knowledge. Mineral Resources
are sub-divided into Inferred
Mineral Resources, Indicated
Mineral Resources and Measured
Mineral Resources
"Oxide" ore containing oxides of iron,
chiefly haematite, goethite
and magnetite
"P" Chemical symbol for Phosphorous
"Schist" a group of medium-grade metamorphic
rocks, chiefly notable for the
preponderance of lamellar minerals.
Schist is characteristically
foliated, meaning the individual
mineral grains split off easily
into flakes or slabs
"S" Chemical symbol for Sulphur
"Supergene BIF" BIF material that is weathered
and more friable with an enriched
Fe % compared to BIF in the
magnetite resource.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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