13th Aug 2014 09:07
LONDON (Alliance News) - Ferrex PLC Wednesday said a desktop study on operations and associated costs found significant potential for low operating costs at the Mebaga direct-shipping iron ore project in Gabon.
Direct-shipping iron ore deposits contain high quantities of hematite or magnetite, and are generally in the 62-64% iron range.
Ferrex said the study included two operational scenarios. Scenario A showed a free-on-board direct shipping ore cost of USD45 per tonne of direct-shipping iron ore, while B showed free-on-board direct shipping ore cost of USD41 per tonne.
"We are very encouraged by the results of this desktop study which, with a FOB cost of between $41/t and $45/t for both operational scenarios, demonstrates the significant potential for low operating costs at Mebaga," said Ferrex Managing Director Dave Reeves.
Ferrex shares were untraded on Wednesday, quoted at 1.275 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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