TIDMZIOC
RNS Number : 3015E
Zanaga Iron Ore Company Ltd
05 April 2011
5 April 2011
Zanaga Iron Ore Company Limited
("Zanaga" or the "Company")
Zanaga Project Update
Zanaga (AIM:ZIOC), the iron ore exploration and development
company with a significant interest in the Zanaga Iron Ore Project
(the "Zanaga Project") in the Republic of Congo (Congo
Brazzaville), is pleased to announce the following Mineral Resource
update and recent developments at the Company and the Zanaga
Project since Xstrata exercised its call option to acquire a 50 per
cent. plus one share interest in Jumelles Limited in February
2011.
Highlights
-- Mineral Resource and Project Update
o Total iron ore Mineral Resource at the Zanaga Project has
grown to 4.0 billion tonnes from 3.3 billion tonnes with an
increase in average grade to 33.9% Fe from 32.8% Fe, as reported in
accordance with the JORC Code (2004)
o Total of 91,155 metres drilled to date; 67,432 metres included
in updated JORC statement
o Mineral Resources derived from only 25km of the 47km orebody
trend
-- Xstrata has taken management control of the Zanaga
Project
-- Value Engineering Exercise ("VEE") underway - VEE results and
pre-feasibility study ("PFS") results expected to be announced in
Q3 2011
Zanaga Iron Ore Project Mineral Resource Grows to 4.0 billion
tonnes at 33.9% Fe
Mineral Resource Statement
Tonnes Fe SiO2
Classification (Mt) (%) (%) P (%) Al2O3 (%) Mn (%) LOI (%)
---------------- ------- ----- ----- ------ ---------- ------- --------
Measured - - - - - - -
---------------- ------- ----- ----- ------ ---------- ------- --------
Indicated 1,720 36.3 41.4 0.046 2.70 0.10 1.20
---------------- ------- ----- ----- ------ ---------- ------- --------
Inferred 2,300 32.0 45.3 0.047 3.80 0.11 1.50
---------------- ------- ----- ----- ------ ---------- ------- --------
Total 4,020 33.9 43.6 0.047 3.30 0.11 1.40
---------------- ------- ----- ----- ------ ---------- ------- --------
Reported at a 0% Fe cut-off grade within an optimised Whittle
shell representing a metal price of 120 USc/dmtu.
The Mineral Resource statement set out above is reported in
accordance with the terms and definitions set out in the JORC Code
(2004) and is reported as at 01 January 2011. As at this date, the
total Mineral Resources constrained within an optimised Life of
Mine (LoM) pit shell, determined using a long term price of
USc120/dmtu, so as to constrain the Mineral Resource to material
that has reasonable prospects of eventual economic extraction,
amounts to some 4.0 Bt grading 33.9% Fe, 43.6% SiO2, 0.047% P, 3.3%
Al2O3, 0.11% Mn and 1.4% LOI. The table above presents the
Indicated Mineral Resource, the Inferred Mineral Resource and the
total Indicated plus Inferred Mineral Resource as at 01 January
2011 as estimated by SRK in March 2011, based on drilling to 24
November 2010. The Competent Person, Dr John Arthur of SRK, has
given his permission for the publication of this information in the
form and context within which it appears.
Geological Summary
The north-south oriented greenstone belt which hosts the Zanaga
deposit has been defined by an airborne geophysical survey over 47
km in length, and is typically between 0.5 and 3.0 km in width.
The iron bearing lithologies within the Zanaga deposit are
itabirites/BIF, interbedded with basic lavas. Typically, the
itabirites consist of layers of iron-rich and quartz rich
meta-sediments which alternate on a millimetre to centimetre scale
and which have been crosscut by late intrusions and dolerite
dykes.
The weathered itabirite units which overlie un-weathered ore are
typical of iron ore deposits and characterised by an enrichment in
iron due to a mass reduction and associated leaching of the
silicate layers.
Further Drilling Progress
The updated JORC Mineral Resource is estimated on drilling
completed on the Zanaga Project up until 24 November 2010 and
includes an additional 24,726 metres to the drilling carried out
for the Competent Person's Report published in the Company's AIM
Admission Document last November. Please see the table below for an
update on drilling completed to date.
Drilling programme summary
Drilling completed Metres
----------------------------------------------- -------
at 30 Jun 2010 (IPO JORC resource) 42,706
----------------------------------------------- -------
30 Jun 2010 - 24 Nov 2010 (New JORC resource) 24,726
----------------------------------------------- -------
24 Nov 2010 to 2 April 2011 23,723
----------------------------------------------- -------
Total to date 91,155
----------------------------------------------- -------
Xstrata now managing the Zanaga Project
Following the exercise of its option in February 2011, Xstrata
has taken management and shareholder control of the Zanaga Project.
ZIOC is pleased to report that this has been achieved with no
serious disruption to the testing/drilling programme at the Zanaga
Project.
PFS and Value Engineering Exercise
On 8 February 2011, Xstrata and ZIOC jointly announced that work
would commence on the Feasibility Study (FS), the first part of
which would be a Value Engineering Exercise (VEE) building on the
pre-feasibility work undertaken by Jumelles Limited. A team of
internal and external experts has now been assembled to conduct the
VEE and investigate a broader range of long-term development
opportunities for the Zanaga resource before the final option and
scope for the full FS are finalised.
The VEE commenced on 16th March 2011 and the initial workshops
have generated and prioritised specific ideas and opportunities for
the Zanaga Project, which have potential to impact positively on
NPV, either through added value or reduced risk. These initiatives
are being taken forward for further consideration.
In view of these plans, ZIOC now expects to be able to publish
the completed PFS and VEE in Q3 2011.
About Zanaga Iron Ore Company Ltd
Zanaga Iron Ore Company Ltd (AIM: ZIOC), is a BVI registered
company which has been focused on managing, developing and
constructing a world class iron ore project capable of mining,
processing, transporting and exporting iron ore concentrate from
the Republic of Congo at full production.
Following the exercise of a call option to acquire a 50% plus
one share interest in the Zanaga Project by Xstrata in February
2011, the principal business of ZIOC has now become the management
of its interest in the Zanaga Project, which is now controlled by
Xstrata at both a shareholder and director level, and monitoring
the Feasibility Study which includes as a first phase the Value
Engineering Exercise.
Further details about the Company can be found on the Company's
website: www.zanagairon.com
Media contacts
ZIOC
Corporate Development and Andrew Trahar Investor Relations
Manager 020 7399 1105
Liberum Capital Limited
Nominated Adviser, Financial Chris Bowman, Christopher Britton
Adviser and Sole Broker and Christopher Kololian
020 3100 2000
Pelham Bell Pottinger
Financial PR Charles Vivian James MacFarlane and Philippe
Polman
020 7861 3232
Important Notice
The Competent Person who has reviewed the Mineral Resources as
reported by the Company is Dr John Arthur (CEng MIMMM, CGeol FGS),
who is an employee of SRK Consulting. Dr Arthur is a Member of the
Geological Society of London (CGeol) and of the Institute of
Materials, Minerals and Mining (CEng) and has sufficient
experience, which is relevant to the style of mineralisation and
type of deposit under consideration, and to the activity he is
undertaking, to qualify as a Competent Person in terms of the
"Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves"(JORC Code 2004 Edition) and is a
"Qualified Person" under National Instrument 43-101 - 'Standards of
Disclosure for Mineral Projects'.
This announcement includes statements that are, or may be deemed
to be, "forward-looking statements". These forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms "believes", "estimates", "plans",
"projects", "anticipates", "expects", "intends", "may", "will" or
"should" or, in each case, their negative or other variations or
comparable terminology, or by discussions of strategy, plans,
objectives, goals, future events or intentions. These
forward-looking statements include all matters that are not
historical facts. They appear in a number of places throughout this
announcement and include, but are not limited to, statements
regarding the Company's intentions, beliefs or current expectations
concerning, among other things, the Group's results of operations,
financial position, liquidity, prospects, growth, strategies and
expectations.
By their nature, forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances.
Forward-looking statements are not guarantees of future performance
and the development of the markets and the industry in which the
Group operates, may differ materially from those described in, or
suggested by, the forward-looking statements contained in this
Announcement. In addition, even if the development of the markets
and the industry in which the Group operates are consistent with
the forward-looking statements contained in this announcement,
those developments may not be indicative of developments in
subsequent periods. A number of factors could cause developments to
differ materially from those expressed or implied by the
forward-looking statements including, without limitation, general
economic and business conditions, industry trends, competition,
changes in regulation or government, changes in its business
strategy, political and economic uncertainty and other factors.
Any forward-looking statements in this announcement reflect the
Company's current view with respect to future events and are
subject to risks relating to future events and other risks,
uncertainties and assumptions relating to the Group's operations
and growth strategy. Subject to the requirements of the AIM Rules
for Companies or applicable law, the Company undertakes no
obligation publicly to release the result of any revisions of any
forward-looking statements in this announcement that may occur due
to any change in the Company's expectations or to reflect events or
circumstances after the date of this announcement.
Glossary
AL2O3 Alumina (Aluminium Oxide)
BIF Banded Iron Formation is the fresh, hard,
un-oxidised, banded, magnetite itabirite
and consists of magnetite, silica and occasional
amphibolite, at Zanaga the BIF has a total
iron grade range of 10%Fe to 47%Fe averaging
30%Fe.
Concentrate the clean product recovered through the
beneficiation processes
Fe Iron
Feasibility Study a technical and economic study which demonstrates
("FS") the technical and economic viability of
a mining project to within a range of accuracy
of 15% and to an appropriate degree of
detail such that a decision for proceeding
to the project development stage may be
made without substantive revision to either
scope or scale
Itabirite metamorphosed banded iron formation
JORC Code the 2004 Australasian Code for Reporting
of Exploration Results, Mineral Resources
and Ore Reserves as published by the Joint
Ore Reserves Committee of the Australasian
Institute of Mining and Metallurgy, Australian
Institute of Geoscientists and Minerals
Council of Australia
LOI Loss on ignition
Magnetite a magnetic greyish black iron mineral (Fe2O4)
Mineral Resource a concentration or occurrence of material
of intrinsic economic interest in or on
the Earth's crust in such form, quality
and quantity that there are reasonable
prospects for 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, in order
of increasing geological confidence, into
Inferred, Indicated and Measured categories
Mn Manganese
P Phosphorus
Pre-feasibility a technical and economic study which demonstrates
study ("PFS") the technical and economic viability of
a mining project to within a range of accuracy
of 25% and to an appropriate degree of
detail such that a decision for proceeding
to the project development stage may be
made without substantive revision to either
scope or scale
SiO2 Silica
This information is provided by RNS
The company news service from the London Stock Exchange
END
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