1st Oct 2014 10:44
(An item published at 1510 BST Tuesday misstated the location of the project. The correct version follows.)
LONDON (Alliance News) - Zanaga Iron Ore Company Ltd shares rose on Tuesday after the company released a positive reserve update for the Zanaga Iron Ore project, the group's joint venture with Glencore PLC in the Republic of Congo.
Zanaga said the proved ore reserves at the site are 770 million tonnes at 37.3% iron. The figures support the Stage One 12 million tonnes per year operation at the site for 25 years.
The probable reserves at the site are 1,290 million tonnes at 31.8% iron. Total ore reserves are 2,070 million tonnes at 33.9% iron derived from 6,900 million tonnes iron mineral resource, supporting the Stage Two 30 million tonnes per year development plan for a 30-year mine life.
Zanaga Chairman Clifford Elphick said the reserve estimate "reinforces the quality and size of the Zanaga Project in the iron ore sector."
Shares in Zanaga were up 8.2% to 13.52 pence on Tuesday. Glencore shares trade 0.5% higher at 341.05 pence.
Separately, Zanaga said it swung to a profit in the first half of the year as it booked a gain on Glencore's investment in the Zanaga project.
The iron ore developer reported a pretax profit of USD43.9 million for the six months to end-June as it booked a USD45.5 million gain. It doesn't currently make any revenue, but administrative expenses fell to USD1.6 million, from USD4.9 million, cutting its operating loss.
By Sam Unsted; [email protected]; @SamUAtAlliance
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