Webcast Interview - Nayega Manganese Togo

RNS Number : 6284E

Ferrex PLC

11 February 2015

 



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

11 February 2015

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

Webcast Interview

Ferrex plc, the AIM quoted manganese development and iron-ore exploration company focused in Africa, announces that a webcast interview with Ferrex's Managing Director, Dave Reeves is available for download.

The interview discusses positive developments from its Nayega manganese project in Togo, where the Company recently announced completion of modelling for the Definitive Feasibility Study to develop a 250,000 tonne per annum manganese mining operation. In addition Dave Reeves discusses the positive economics behind a potential 'starter' option which would see Nayega commence manganese production within six months of the Mining Permit being granted. The Company's target is now to finalise the Mining Convention before end Q1, 2015, with the granting of the Mining Permit expected shortly thereafter.

To download the following interview Dave Reeves please click on the following link http://brrmedia.co.uk/event/133660?popup=true 

**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 has a two-phased approach to developing the product towards production. Firstly the development of a low-capex, open pit, 250,000tpa manganese ('Mn') 38% Manganese product operation (Phase 1) and in the medium-term commissioning a smelting facility to produce a valuable 74% High Carbon Ferromanganese alloy (Phase 2).  Ferrex has completed the majority of the Definitive Feasibility Study for Phase 1 which outlines low capex costs of US$14.5 million. Additionally recently announced high grade assay results of 41.6% and 42.1% Mn from a 3 tonne bulk sample collected by scrubbing and screening support a near-term, within six months of securing the mining licence, 'starter' option route at potentially lower capex costs than the US$14.5 million forecast for Phase 1.  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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