15th Jul 2015 09:38
LONDON (Alliance News) - Bellzone Mining PLC Wednesday said that the review into its Kalia project in the Republic of Guinea in West Africa has shown that the iron ore resource in the northwest area includes "significant nickel laterite mineralisation".
The mining company said that the mineralisation potentially presents a new opportunity to commence iron ore mining and pig iron production that includes nickel and cobalt.
Bellzone has commenced preliminary studies to assess the viability of developing a modular nickel pig iron production facility on site, so that it can smelt iron ore containing nickel to produce nickel pig iron with a nickel content that meets global consumer specifications. The processing and smelting processes identified have initially been assessed as suitable for location at Kalia, Bellzone said.
"Our focus is to develop Kalia to its full potential. We are fully cognisant of the challenges presented by infrastructure limitations for bulk materials production and export in Guinea, financial markets, iron ore prices and developing a large operation that will eventually be the Kalia mine. The review of the Kalia resource and mineralisation led us to the concept of producing nickel pig iron. This concept appears to address the infrastructure challenges presented for bulk materials export," Chief Executive Kum Hon Tung said in a statement.
Shares in Bellzone were trading down 3.2% at 0.750 pence Wednesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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