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ZIOC upbeat despite year losses

By BFN News | 07:56 AM | Wednesday 25 May, 2011

In ZIOC's first full year of operations following its incorporation on 19 November 2009, the company made a loss in the year of $13.2m compared to a loss of $1.6m in the short period from ZIOC's date of incorporation to 31 December 2009. General expenses of US$2.7m consist of cash bonuses of US$1.0m paid to certain key employees on admission to trading on AIM in November 2010, US$0.9m of professional fees and US$0.8m of other general operating expenses. The foreign exchange loss of US$1.3m can be attributed to the impact of the weakening of the US Dollar against UK Sterling during the year on the cash balances that arose following the listing that are held in UK Sterling. The share-based payment charge reflects the expense associated with the grant of options to ZIOC's directors under ZIOC's long-term incentive plan ("LTIP") and to the expense associated with the grant of share options to one of ZIOC's consultants. Cliford Elphick, Non-Executive Chairman of Zanaga Iron Ore Company Limited, commented: "In addition to the strategic partnership with Xstrata, the combination of a number of key strengths supports the Board's view that the Zanaga Project represents a significant opportunity. Large scale resources have been identified from targeted areas of the Zanaga ore body that have the potential to sustain a high production mine over the long-term. "Exploration work to date has indicated that the quality of the ore is characterised by a shallow, soft and rippable haematitic itabirite cap which overlies a magnetite banded iron formation or BIF protore which jointly demonstrate production potential of iron ore product with low deleterious elements. To date only 25 km of the known 47km strike length of magnetic mineralisation has been drilled to define the current mineral resource, leaving potential upside to expand production and enhance value." Story provided by

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