TIDMBZM
RNS Number : 6677Q
Bellzone Mining PLC
24 October 2011
24 October 2011
Bellzone Mining plc
("Bellzone" or the "Company")
Third Party Access to 300 MTPA Infrastructure in Guinea
Bellzone Mining plc (AIM:BZM), is pleased to announce that it
has signed a Memorandum of Understanding ("MOU") with Anglo
Aluminum Corp regarding the latter's access as a third party
commercial user of the port and rail infrastructure being developed
by China International Fund Limited ("CIF") for Bellzone's 100%
owned Kalia Mine Project in Guinea, West Africa.
Anglo Aluminum Corp ("Anglo") is a Canadian TSX-Venture Exchange
listed company (trading symbol "ALU") that is developing bauxite
resources in Guinea. Anglo has conducted Aster image analysis and
preliminary exploration drilling at Mamou Dalaba in the south of
Guinea and this supports historical data that shows the project
area has the potential to host large bauxite deposits. Anglo is
also planning additional resource drilling in early 2012.
Bellzone signed an infrastructure accord ("the Accord") with the
Republic of Guinea in June 2010, which became law in August 2010,
for the exclusive right to complete the technical and economic
feasibility studies for the rail and port infrastructure required
to transport and export iron ore from its Kalia Project.
In relation to the agreement reached by Bellzone with CIF, the
infrastructure will be developed through Kalia Horizon Minerals Pte
Ltd ("KHM"), a CIF subsidiary in which Bellzone has a 10% carrying
interest. KHM received funding of US$40 million from CIF to conduct
the nearly completed infrastructure feasibility studies for the
300mtpa multi user rail and deep water port located at Matakan at
Ile de Kabak.
Nik Zuks, CEO of Bellzone stated: "The signing of the tripartite
MOU with Anglo demonstrates the commitment of CIF, through KHM, to
allow third party use on the rail and port infrastructure that is
being developed. This facility will accelerate the development of
resource projects that will bring significant benefits to
Guinea."
Jim Gillis, CEO of Anglo Aluminum commented: "With
infrastructure agreements in place, the development of bauxite
mining at Mamou Dalaba is a step closer to being realised, and we
look forward to working closely with all parties to bring this to
fruition."
Alain Fanaie, CEO China Sonangol, speaking as the representative
for CIF, said: "The development of this port and rail corridor
represents a new milestone for the mining industry, and it will
create further value for Guinea."
Editors' notes: About the infrastructure:
The Accord provided Bellzone with:
-- Exclusive access rights over the identified 300 km rail route
and Matakan port site at Ile Kabak, 50 kilometres south east of
Conakry, for the 30 month duration of the Accord from August
2010
-- 30 months to complete feasibility studies and finalise the infrastructure convention
-- An agreement that the Republic of Guinea will facilitate all
administrative processes that contribute to the optimal completion
of the feasibility studies
-- A Certificate of Exclusive Build, Operate and Transfer
("B.O.T.") Dealer on signing of the infrastructure convention
Development of the 300 million ton per annum capacity rail and
port facility, available for third party use, is on schedule:
-- Socioeconomic and Environmental Impact Assessment studies
("SEIA") and ("EIA") awarded in December 2010 are progressing well
and are due for completion in November 2011.
-- Design options for the multi-berth port layout at Matakan at
Ile Kabak have been completed and the detailed feasibility study
report is due for completion in Q1 2012, after receiving final
oceanographic and meteorological surveys, which are approximately
80% complete.
-- Land survey work has been completed.
-- The dual track, 300mtpa rail route alignment has been
finalised with all topographic survey and geotechnical assessments
completed.
-- Final optimisation to minimise construction times and overall costs is progressing.
-- The detailed rail feasibility study report is expected to be completed in Q4 2011.
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)
+44 (0)20 7 9203 150 / +44 (0)7899
Jos Simson/Paul Youens 870 450
PPR (Australia)
+61 (0) 8 9388 0944 / +61 (0)
David Ikin 408 438 772
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 most favoured
customer 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.
About China Sonangol and China International Fund Limited ("CS
Group")
CS Group is headquartered in Hong Kong Special Administrative
Region of China, and has investment footprints in 3 continents and
more than 20 countries.
The primary activities of CS Group is in oil, gas and mineral
exploration and production, commodities trading and is also
globally active in real estate and infrastructure development,
where in particular, through China International Fund, it has
participated in the rehabilitation and development of new and
existing transport infrastructure in Angola such as New Luanda
International Airport, where it is envisioned to be a major airport
hub in West Africa, and rehabilitated main railways in Angola. CIF
has also constructed 3 large scale logistics base in Angola, as the
logistical backbone to support its infrastructure and industrial
implementation and development program, consisting cement and brick
production plants, sand and stone quarries, as well as production
of industrial materials such as steel sheets and plastic pipes.
With the strengths of its experience in large scale
infrastructure development in Africa, CS group is in the position
to accelerate the iron ore exploration and production with its
Joint Venture partner Bellzone Mining PLC.
CS Group has a vision for Africa. This vision is, through
South-South cooperation, where in partnership with private industry
and with the government, CS Group will develop public transport
infrastructure such as road, rail, seaports and airports to improve
connectivity and accessibility, as well as public utilities,
agriculture, aqua culture, public housing, construction materials,
mining and oil and gas projects, where its commercial objectives
are aligned with the needs of countries to develop the economy and
improve, ultimately, the living standards of the people.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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