21st May 2015 08:32
LONDON (Alliance News) - Ferrex PLC Thursday said it has secured a maiden ore resource after completing the definitive feasibility study for the Nayega manganese project in northern Togo.
Ferrex, which has an 85% stake in the project, said it has reached a "significant milestone" in achieving its aim of a 250,000 tonne per year operation at Nayega.
The preliminary definitive feasibility study results indicate a significant reduction in capital and operating costs for a Nayega accelerated start-up and a maiden ore reserve of 8.5 million tonnes at 14% manganese.
The study is currently being reviewed by a third party and more details will be released once the mining permit has been issued, it said. Financing due diligence is also underway.
"From a first look, the reduction in capital and operating costs for the accelerated start-up appears to be significant and should have a substantial positive impact on the project's profitability," said Managing Director Dave Reeves.
Ferrex shares were down 1.6% to 0.615 pence per share on Thursday morning, having initially risen to 0.73p on the news.
By Joshua Warner; [email protected]; @JoshAlliance
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