TIDMZIOC
RNS Number : 8411Q
Zanaga Iron Ore Company Ltd
25 October 2011
26 October 2011
ZANAGA IRON ORE COMPANY LIMITED
("ZIOC" or the "Company")
Zanaga Project Mineral Resource Update
Zanaga Iron Ore Company Limited (AIM:ZIOC) is pleased to
announce the following Mineral Resource update relating to the
expansion and improvement in resource classification on the Zanaga
Iron Ore Project (the "Zanaga Project") in the Republic of Congo
(Congo Brazzaville). The updated resource estimate was prepared by
independent consultants SRK Consulting (UK) Ltd ("SRK") and
reflects additional drill-hole and assay data obtained since the
preparation of the last estimate reported on 5 April 2011.
Highlights
-- Iron ore mineral resource expands to 4.3 billion tonnes at an
average grade of 33.0% Fe from 4.0 billion tonnes at an average
grade of 33.9% Fe, reported in accordance with the JORC Code
-- Improvement in resource classification: Ratio of Measured,
Indicated and Inferred Resources has improved to 3%:59%:38%
respectively, representing a significant change from the previous
estimate announced on 5 April 2011 of 0%:43%:57%
-- Total of 126,984 metres drilling included in updated JORC statement
-- Mineral Resources derived from only 25km of the 47km orebody trend
Clifford Elphick, Non-Executive Chairman of ZIOC, commented:
"I am pleased to announce an improvement in the JORC compliant
Mineral Resource classification as well as an expansion in Mineral
Resource inventory at the Zanaga Iron Ore Project. A significant
drilling programme has been conducted on the Zanaga Project and
today's results provide further confidence in the large scale
orebody."
Zanaga Iron Ore Project Mineral Resource Grows to 4.3 billion
tonnes at 33.0% Fe
Mineral Resource Statement
Classification Tonnes Fe (%) SiO2 Al2O3 P (%) Mn (%) LOI (%)
(Mt) (%) (%)
---------------- ------- ------- ----- ------ ------ ------- --------
Measured 149 38.7 39.1 2.4 0.047 0.093 1.2
---------------- ------- ------- ----- ------ ------ ------- --------
Indicated 2,540 34.1 43.6 2.8 0.050 0.112 1.0
---------------- ------- ------- ----- ------ ------ ------- --------
Inferred 1,650 31 46 4 0.05 0.12 2
---------------- ------- ------- ----- ------ ------ ------- --------
Total 4,339 33.0 44.3 3.3 0.049 0.114 1.3
---------------- ------- ------- ----- ------ ------ ------- --------
Reported at a 0% Fe cut-off grade within an optimised Whittle
shell representing a metal price of 130 USc/dmtu.
The Mineral Resource statement set out above is reported in
accordance with the terms and definitions included in the
Australasian Joint Ore Reserves Committee (JORC) Code (2004) as at
September 2011. As at this date, the total Mineral Resources
reported at a 0%Fe COG constrained within an optimised Life of Mine
(LOM) pit shell, amounts to 4.34 Bt grading 33.0% Fe, 0.049% P,
44.3% SiO2, 3.3% Al2O3, 0.114% Mn, and 1.3% LOI. The shell was
determined by SRK using operating costs derived from the
Pre-Feasibility Study work streams and a selling price of 130
USc/dmtu based on the SRK 3(rd) Quarter 2011 consensus market
forecast for Brazilian fines without adjustment. The table above
presents the Measured Mineral Resource, Indicated Mineral Resource,
the Inferred Mineral Resource and the total Measured plus Indicated
plus Inferred Mineral Resource based on drilling to 26 August 2011
and as estimated by SRK in September 2011. 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.
Drilling programme summary
The updated JORC Mineral Resource is estimated on drilling
completed on the Zanaga Project up until 26 August 2011 and
includes an additional 59,618 metres (88% increase) & 951 holes
(45% increase) to drilling carried out for the previous resource
statement announced on 5 April 2011. In addition, a total of 43,373
XRF analyses and 37,617 Niton analyses were used to model the
mineral resource, more than twice the amount used in the previous
mineral resource statement. Please see the table below for an
update on drilling completed.
Drilling completed Metres
---------------------------------------------------- --------
at 30 Jun 2010 (IPO JORC resource) 42,706
---------------------------------------------------- --------
30 Jun 2010 - 24 Nov 2010 (previous JORC resource,
announced 5 Apr 2011) 24,660
---------------------------------------------------- --------
24 Nov 2010 - 26 Aug 2011 (new JORC resource,
announced 26 Oct 2011) 59,618
---------------------------------------------------- --------
Total to date 126,984
---------------------------------------------------- --------
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.
For further information please contact:
Zanaga UK Services Limited
Corporate Development and Andrew Trahar Investor Relations
Manager +44 20 7399 1105
Liberum Capital Limited
Nominated Adviser, Financial Chris Bowman, Christopher Britton
Adviser and Joint Corporate Broker and Christopher Kololian
+44 20 3100 2000
Citigroup Global Markets Limited
Joint Corporate Broker Alex Carter
+44 20 7986 4000
Pelham Bell Pottinger
Financial PR James MacFarlane
and Philippe Polman
+44 20 7861 3232
About us:
Zanaga Iron Ore Company Limited (AIM:ZIOC) is a BVI registered
Company and the owner of 50% less one share interest in the Zanaga
Iron Ore Project based in the Republic of Congo (Congo Brazzaville)
through its joint venture partnership with Xstrata. The Zanaga Iron
Ore Project is focused on the management, development and
construction of a world-class iron ore mine and related,
processing, rail and port infrastructure
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 (UK) Ltd. 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 Company's and its subsidiaries'
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
Company and its subsidiaries operate, 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 Company
and its subsidiaries operate 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 Company's and its
subsidiaries' 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 the technical
("FS") 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 the technical
Study ("PFS") 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
DRLFEUFUIFFSELS
Zanaga Iron Ore (LSE:ZIOC)
Historical Stock Chart
From Jul 2024 to Aug 2024
Zanaga Iron Ore (LSE:ZIOC)
Historical Stock Chart
From Aug 2023 to Aug 2024
