Maiden Resource at Nayega & Changara Update
Ferrex plc / Index: AIM / Epic: FRX / Sector: Mining
31 May 2012
Ferrex plc ('Ferrex' or 'the Company')
Maiden Resource Nayega Manganese Togo Project
and
Changara Manganese Project Update
Ferrex plc, the AIM quoted iron ore and manganese development company focused in Africa, is pleased to announce a Maiden JORC Code compliant resource on its 85% owned 92,390Ha Nayega Manganese Project ('Nayega' or 'Project') located in northern Togo. The Board believes the project, which has direct access to the major deepwater port of Lome, has the potential to be developed into a low capital and operating cost open pit manganese mine in the near term.
Overview
· Maiden Inferred Resource of 6.3Mt @ 14.1% manganese ('Mn')
· Ore easily amenable to low cost upgrade through screening and gravity
· Resource estimated on results of 77 pits dug on 100m centres along east-west lines spaced 200m apart
· Further infill pitting completed on 100m by 100m centres - results targeted for Q3 2012 to allow potential resource upgrade to Indicated classification
· Deposit is amenable to development as a shallow open pit operation with no waste stripping required
· Metallurgical test work results due Q2 2012 - scoping study to commence immediately after
· Definitive feasibility study on track to be completed before the end of 2012
· Nayega has access to good infrastructure - direct road access to the major deepwater port of Lome 600km to the south of Nayega
Ferrex Managing Director Mr. Dave Reeves said, "I am delighted to report a positive maiden resource at this flagship manganese project on schedule and on budget. The resource falls within the previously stated exploration target and is a significant milestone in the development of Nayega as a low-capex manganese mine with near term cash flow potential.
"Metallurgical test work results are due imminently with a scoping study to commence thereafter to further prove the project's economic viability as a simple, open pit, no strip operation with potential for beneficiation through screening and gravity separation. Additionally regional exploration surrounding Nayega has now commenced with our geologists investigating 47 targets based on an evaluation of satellite images. We also remain on track to complete the feasibility study at Nayega before the end of 2012 and look forward to reporting on these developments as we develop Nayega up the development curve with a view to production in 2013."
Nayega Manganese Project - Togo
Resource Model
Resource modelling was undertaken by Mr L. Widenbar of Widenbar and Associates.
The model is based on the results of 77 pits ranging from 0.15-9.85m deep with an average depth of 4.22m. Continuous vertical channel samples 10cm wide by 10cm deep were collected at 50cm intervals (maximum) from the top to the bottom of each pit. Samples were analysed for major element oxides by lithium borate fusion with an XRF finish at SGS laboratories in Johannesburg. A rigorous QA/QC programme incorporating field duplicates, laboratory duplicates, blanks and analytical standards was employed to monitor all facets of the sampling and sample preparation process. A total of 88 samples were collected for bulk density determination. Using these data, the average density was calculated for each ore type.
Wireframes were created for four ore type domains - detrital, lateritic, transitional (laterite to saprolite) and saprolitic. Empty blocks 25m long by 25m across and 0.5m thick were generated and interpolated by domain using inverse distance cubed. Tonnage and major oxide grades were calculated for each domain at cut-off grades ranging up to 25% Mn.
The inferred resource estimate is detailed in Table 1.
Table 1: Summary of Nayega Inferred Resource.
|
Cut-off (Mn %) |
Volume |
Tonnes |
Mn % |
Mn (Contained Tonnes) |
Fe % |
P2O5 % |
SiO2 % |
Al2O3 % |
LOI % |
|
0 |
3,107,724 |
6,257,070 |
14.09 |
881,621 |
5.67 |
0.17 |
46.75 |
12.97 |
9.29 |
Ferrex owns 85% of the Nayega Manganese Project
Changara Manganese Project
With the completion of the resource estimate and the possibility of developing a near term operation at Nayega, the board has decided it is best to focus the companies attention on this project and as a result has informed its joint venture partner Baobab Resources Plc that it will be withdrawing from the Changara joint venture in Mozambique. Ferrex will pay Baobab USD39,521 for the shortfall in expenditure committed as per the joint venture agreement.
Further information
Ferrex has an 85% interest in Société Générale de Mine, a Togolese company that owns the Exploration Permit over the Nayega manganese deposit in northern Togo. Nayega is a residual manganese deposit, comprising lateritic and saprolitic mineralisation extending up to 10m below surface blanketed by a veneer of detrital material that averages 0.5m thick. Pitting by Ferrex has revealed that mineralisation occurs over a strike length of 2.2km at widths of up to 500m.
The deposit is situated in northern Togo and has direct access to the major deepwater port of Lome located 600km to the south.
The Republic of Togo is a French speaking country that lies adjacent to Ghana (to the west) and Burkina Faso (to the north). Togo is a large scale producer of phosphate and cement that is exported from its two deep water ports. The government of Togo is actively seeking foreign investment and investment in mining and has been very supportive of Ferrex.
Competent Person Statement
Information in this release that relates to exploration results is based on information compiled by Ferrex Exploration Manager Mr Mark Styles. Mr Styles is a qualified geologist, a member of the Australian Institute of Geoscientists and is a Competent Person as defined in the Australasian Code for Reporting of Exploration Results. Mr Styles consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.
The information in this report that relates to Mineral Resources has been compiled by Mr Lynn Widenbar. Mr Widenbar, who is a Member of the Australasian Institute of Mining and Metallurgy, is a full time employee of Widenbar and Associates and produced the Mineral Resource Estimate based on data and geological information supplied by Ferrex. Mr Widenbar has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Widenbar consents to the inclusion in this report of the matters based on his information in the form and context that the information appears.
Caution Regarding Forward Looking Statements: Information included in this release constitutes forward-looking statements. There can be no assurance that ongoing exploration will identify mineralisation that will prove to be economic, that anticipated metallurgical recoveries will be achieved, that future evaluation work will confirm the viability of deposits that may be identified or that required regulatory approvals will be obtained.
**ENDS**
For further information and the full Admission document visit www.ferrexplc.com or contact the following:
|
Dave Reeves |
Ferrex plc |
+ 61 (0) 420 372 740 |
|
Russell Lamming |
Ferrex plc |
+ 44 (0) 781 0870 587 |
|
Colin Aaronson/ David Hignell |
Grant Thornton Corporate Finance |
+44 (0) 20 7383 5100 |
|
John Prior / Sebastian Jones |
Collins Stewart Europe Limited |
+44 (0) 20 7523 8350 |
|
Felicity Edwards/ Elisabeth Cowell |
St Brides Media and Finance Ltd |
+44 (0) 20 7236 1177 |
Notes
Ferrex plc is an AIM quoted exploration and development company focused on advancing low capex iron ore and manganese projects in Africa through the development cycle and into production. Our current property portfolio comprises iron ore (Malelane) and manganese (Leinster) projects in South Africa, a manganese project (Nayega) in Togo, all of which offer the potential for significant near-term value uplift.
The Company's growth strategy is centred on advancing its current assets, utilising its Board and management team's considerable experience in developing resource projects across Africa and expanding its portfolio through acquisitions to build Ferrex into a mid-tier, low-cost producer of iron ore and manganese.
This information is provided by RNS
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