6th Mar 2014 12:38
LONDON (Alliance News) - Ferrex PLC Thursday said exploration activities at its Mebaga Iron Ore Project have found an additional high grade iron ore space in the eastern half of the licence.
The exploration and development company, with iron ore and manganese deposits in Africa, said geological mapping to evaluate the strike length of the banded iron formation on site identified a key area seven kilometres east of the area drilled by Ferrex in 2013.
The company said rock ships from the area have been taken for assay and information from the mapping will be used to design a further drill programme in mid-2014.
Results from the company's 2013 drill programme include a 28.7 metre space at 61.4% iron from the surface and the company has an exploration target for 11 kilometres of the site of 630 to 1,050 million tonnes of ore at 25 to 65% iron.
The company also announced that a proposed two-year funding transaction for the development of Mebaga between Anglo American PLC and Ferrex's subsidiary Kumba iron ore Ltd, announced in December, has now received approval from the Gabon Ministry of Mines, and the company is now waiting for the outcome of the due diligence process and subsequent required corporate approvals to be given.
The news comes after the company announced on Tuesday that its pretax loss widened in its full-year 2013 as it develops toward first production at its African operations.
Ferrex shares were up 10.78% to 2.05 pence, putting it in the top AIM risers Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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