15th Oct 2015 10:49
LONDON (Alliance News) - Bellzone Mining PLC shares soared on Thursday after it said it has secured its maiden mineral resource estimate for the Kalia project in Papua New Guinea.
Bellzone shares doubled to 0.750 pence per share on Thursday.
The new resource estimate states the total nickel resource at the project stands at 79.3 million tonnes of ore at 0.69% nickel and 0.044% cobalt, comprised of an indicated resource of 27.5 million tonnes at 0.7% nickel and 0.037% cobalt and an inferred resource of 51.9 million tonnes at 0.68% nickel and 0.047% cobalt.
"The nickel JORC Mineral Resource Estimate confirms the potential for Bellzone to commence the development of the Kalia iron ore mine with downstream processing of iron ore in Guinea to produce a higher value iron ore product with a high nickel content. We will also assess the potential contribution that the cobalt content in the mineralisation provides," said Chief Executive Tung Kum Hoh.
Bellzone said the new resource supports a further study to be carried out to lead to a nickel pig iron production facility on site.
"Initial scoping by Bellzone suggests that the quantity of resources is more than adequate to support further studies to assess the viability of developing a modular NPI or ferronickel production facility in Guinea. The new mineral resource estimate is based solely on data collected during the iron exploration phase of the project," said the company.
By Joshua Warner; [email protected]; @JoshAlliance
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