Manganese Q&A

RNS Number : 4480C

Ferrex PLC

19 January 2015

 



Ferrex plc / Index: AIM / Epic: FRX / Sector: Mining

19 January 2015

Ferrex plc ('Ferrex' or 'the Company')

Manganese Q&A - Available on Corporate Website

Ferrex plc, the AIM quoted manganese development and iron-ore exploration company focused in Africa, announces that it has published a manganese Q&A on its corporate website in line with its active communications policy which aims to provide quality, timely and effective communication to its investors and stakeholders. The manganese Q&A gives further information on manganese as a commodity, its market dynamics and the Company's Nayega manganese development project in Togo.

To view the manganese Q&A please click the following link or visit www.ferrexplc.com and visit the commodities section of the website. http://www.rns-pdf.londonstockexchange.com/rns/4480C_-2015-1-16.pdf

**ENDS**

For further information please visit www.ferrexplc.com or contact the following:

Dave Reeves	Ferrex plc	+ 61 (0) 420 372 740
finnCap		[phone]
Joanna Weaving	Broking
Matthew Robinson	Corporate Finance
Beaufort Securities
Elliot Hance / Saif Janjua	Broking	[phone]
Felicity Winkles / Elisabeth Cowell	St Brides Media and Finance Ltd	[phone]

Notes

Ferrex plc is an AIM quoted, leading manganese development and iron-ore exploration company in Africa.  The Company is focussed on advancing low capex deposits, which benefit from proximal established infrastructure, up the development curve and into production. Ferrex has a solid portfolio of assets including three primary projects: Nayega Manganese Project in Togo ('Nayega'), Mebaga Iron Ore Project in Gabon ('Mebaga'), and Malelane Iron Ore Project in South Africa ('Malelane').

At Nayega, Ferrex is currently concluding a Bankable Feasibility Study and expects award of the mining permit in the very near future.  A Scoping Study indicates that Nayega could produce 250,000 tonnes per year of manganese concentrate at 38% with an initial capital expenditure of under $15m.  A Scoping study on a ferro manganese plant in Togo has also been concluded and shows a lowest quartile operation with robust economics. The company is focussed on bringing the mine into production on grant of the mining permit whilst advancing the ferro manganese studies.  

In parallel with this, Ferrex will continue to prove up resources at its Mebaga concession in Gabon when the sentiment for iron ore improves. A recent review has led to the estimation of an exploration target comprising 90 to 150Mt @ 35 to 65% Fe (oxide target) and 550 to 900Mt @ 25% to 40% Fe (primary target) for Mebaga. The Oxide target will incorporate both DSO* and bBSO* material. Ferrex has recently completed an initial drill programme at Mebaga that has intersected significant widths of DSO and bBSO mineralisation.

The Company also holds the Malelane Iron Ore concession in eastern South Africa. A Scoping Study on Malelane has demonstrated its potential to produce 1.8Mtpa of beneficiated ore per year, with initial capital expenditure of $139m, a payback of 1.9 years, a Net Present Value of US$523m (10% discount rate) and a 16.6 year life-of-mine. 

Ferrex has 934M shares on issue. The Directors have subscribed for and purchased approximately 28% of the issued share capital of the Company and are thus aligned with shareholders interests.

 

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