TIDMBZM
RNS Number : 4340S
Bellzone Mining PLC
21 November 2011
21 November 2011
Bellzone Mining plc
("Bellzone" or the "Company")
Forecariah JV Progress Update & Analyst Call
-- Project remains on schedule to achieve production in Q1 2012
-- Identified 146 million tonne internal resource
o For initial and long-term production
o Extensive exploration potential identified
-- Required studies and assessments completed and approvals awaited
o Mine and process plant feasibility studies completed and
awaiting Government approval
o Port feasibility study review completed by Government
o SEIA / EIA completed and awaiting approval
-- Procurement & contracts in place for production in Q1
o Marine fleet finalised and procured
o Contracts for Marine Fleet Management, Trans-shipping, Health
and Security, Mine to Port haulage and Port Construction all
signed
o Mining and haul fleets on route to Conakry with camps,
buildings, and all other equipment
o Phase 1 equipment shipped
-- Road construction on track for haulage in February 2012
Bellzone Mining plc (AIM:BZM) is pleased to provide a progress
report on the Forecariah JV Project (the "JV") in the Republic of
Guinea, West Africa, which remains on schedule to commence
production of iron ore in Q1 of 2012.
Nik Zuks, CEO of Bellzone, stated: "It is very satisfying to
update on such a level of progress at Forecariah, as we near the
end of 2011 and move for production in the first quarter of the new
year. I would like to thank our shareholders for their continued
support and look forward to updating on our mining activities
throughout 2012."
There will be a call for analysts to discuss progress at
Forecariah ahead of production commencing in the next quarter.
The analyst call will be at 07.30am on Monday 21 November 2011.
If you would like to participate in this call, please dial in to
register on 0800 368 1950 / +44 (0)20 3140 0668 (PIN: 752852#) at
07.25am. For any queries regarding the call, please contact Jos
Simson on +44(0)20 7920 3150.
Resource Development
The initial internal resource development and mine planning work
has focused on defining sufficient production for initial start up,
which is intended to provide product through to end Q4 2012.
The mapped iron oxide cap is a product of the Marampa beds. The
Marampa beds extend from within Sierra Leone to 8km NNW of
Yomboyeli. Of the 8km strike of the prospective Marampa Beds within
the JV lease area, the internal resource estimate has been
established across approximately 1km of the central Yomboyeli zone,
which runs in parallel to two other ridges, namely Yomboyeli West
and Yomboyeli East. The current resource development programme will
continue to define the remaining 7km of the identified Marampa beds
and the parallel ridges at Yomboyeli.
An initial internal resource of;
-- 2.0mt of iron oxide cap, grading at +55%Fe, producing a crush
and screen product of 58%Fe has been identified as the initial
mining zone
-- 5.9mt of iron oxide canga grading at 45.7%Fe, initial gravity
testwork indicates grades of 58% Fe are achievable
-- 13.2mt of lower grading oxide, 34%Fe, at surface
-- 38 million cubic meters of hematite schist, with calculated
densities of 3.3 t/m(3) , providing 125mt, has been identified at
depths of 5m to 100m. Testwork conducted to date indicates the
hematite schist can be upgraded to grades of 60%Fe to 64%Fe, with
mass recoveries of over 60%
-- Haematite schist is open at depth and will be defined with a deep diamond drilling programme
Ongoing upgrade testwork and infill drilling will further define
the hematite schist and surface oxide canga that will be used in
planning production from Q4 2012.
The Yomboyeli exploration development programme continues in the
central zone to permit detailed production planning. A 30,000m RC
drilling programme at Yomboyeli west has started, with first holes
intersecting surface oxide up to 12m thick and zones of hematite
schists at depth. Diamond drilling at Moussaya has intersected
multiple zones of magnetite. Results from these programmes are
expected to add to the already internally identified resources and
will be available in Q1 2012.
Potential of the Lease Area
Yomboyeli Central
-- Drilled to 100 meters, open at depth
-- Central haematite schist core of 140 meters could be extended
to an economic depth of + 200 meters
Yomboyeli West
-- Extensive haematite schist zones discovered, length of zone
potentially three times that of Yomboyeli Central
-- Extent of the oxide cap has yet to be determined
-- Magnetic high adjacent to the haematite schist yet to be tested.
Laya
-- Iron bearing zone mapped, yet to be drilled. Forms part of
the mapped Marampa bed extensions and could be an extension of the
Yomboyeli Central zone.
Moussaya
-- Multiple parallel magnetite bearing zones discovered
-- Haematite carapace extent yet to be tested
Additional targets
-- Seven km of the haematite bearing Marampa beds yet to be explored
-- New targets identified by the magnetic survey yet to be explored
-- Further exploration is likely to uncover additional haematite
schist bodies, they cannot be identified using magnetic
-- Extensive Santiguiyah potential yet to be fully tested.
Current testwork indicates the potential to achieve a +60%Fe
product and ongoing testwork will further define the next phase of
the exploration programme
Road Development
The 76km road route comprises 20km of new road required to
bypass small villages, and 56 km of existing road. The existing
road upgrade and new road construction to support the bulk ore road
trains is being completed in five sections, with various aspects of
the work awarded to four main contractors. The road development is
on schedule to permit haulage of ore in February 2012. Progress to
date:
-- Entire length of the road has been cleared and grubbed,
-- Borrow pits have been opened,
-- Culverts are under construction,
-- Drainage, cut and fill operations are underway; and
-- Layering has started in some sections.
-- The road development is on schedule to permit haulage of ore in February 2012.
Konta Port Development
China Communications and Construction Company ("CCCC") and
Second Harbour Consultants Co have completed the port feasibility
study. This study has been issued to the Government and received
its approval.
Following award of the Port EPC contracts to CCCC, the materials
for the first phase are already on route to Guinea, where they will
be assembled ahead of the Q1 2012 production schedule. Final
approval is awaited from the Ministry of Mines to allow the start
of land acquisition, site clearance and construction. The
development of the port remains on schedule to achieve first
shipment of product from Forecariah in Q1 2012.
Marine Operations
Panamax
Detailed inspections on the identified Panamax to serve as a
floating stockpile and transhipping vessel, the MV Magnetic Isle
(to be renamed FGM Iron), have been completed. The sale has been
confirmed and deposits paid. Mobilisation of the vessel to Guinea
waters will be in December, with arrival scheduled in January
2012.
Harbour Tugs
Negotiations for the harbour tugs, FGM Honour and FGM Honesty,
have been completed, the sale confirmed and deposits for the
vessels have been paid. Mobilisation of the vessels to Guinea will
be in December, arriving January 2012.
Pilot Vessel
The Pilot vessel, FGM Integrity, has been sourced and purchase
completed. Mobilisation will be with FGM Iron, as it will be
carried on its deck.
Transshipping Contract
Four tenders for the trans-shipping operation from port to
export vessel were evaluated. The Contract has been awarded to
Cathay Offshore, who are experienced in bulk materials
trans-shipping operations. The contract covers the supply and
operation of all vessels and equipment from port outload to export
vessel loading. The 3 barges and 2 tugs, complete with stevedoring
equipment will depart Singapore in December, arriving in Guinea by
February 2012.
Marine Management Contract
Global International Transportation has been awarded the
contract for marine operations management covering crew,
maintenance, insurance and operations of all marine vessels owned
by Forecariah Holdings.
Mine and Plant Development
The Bellzone and CIF mining team have completed the mining and
processing feasibility study all equipment has been purchased,
including:
-- The crushing and screening plant - on ship to Guinea
-- The road haulage truck fleet - on ship to Guinea
-- Mining haulage fleet - on ship to Guinea
-- Earthmoving equipment - on ship to Guinea
-- Accommodation camp - on ship to Guinea
-- Drilling and blasting equipment - on ship to Guinea
-- HV and LV workshops (with tools and equipment)
-- Health and emergency clinics, including ambulance
The vessel with the above equipment is due to arrive in Guinea
in early December, delivering the purchased equipment and plant for
site starting December 2011 through to January 2012.
The tonnage estimation information disclosed in this
announcement has been reviewed by Bernhard Neehoff BSc. Post Grad
Dip Sc.; a member of the Australasian Institute of 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
Terry Larkan/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 7920 3150 / +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
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,
based on an internal resource estimate of 146 million tonnes of
oxide, 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. The VTEM aerial survey has been completed and highly
prospective targets have been identified and will form the basis of
the 2012 drilling programme due to commence in December 2011.
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 West Africa. Additionally, on its railway experience, CIF
rehabilitated almost 3,600 kilometers of railway in Angola. CIF has
also constructed 3 logistics base in Angola where in total occupies
925,000m(2) , 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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