13th Oct 2014 08:46
LONDON (Alliance News) - International Ferro Metals Ltd Monday said it has signed agreements with Chrometco Ltd to start mining at Chrometco's Rooderand LG6 open pit mine and to buy the mined ore.
Under the ore sale agreement, International Ferro will pay Chrometco a portion of the net profit per tonne of ore mined, after deducting all costs associated with the mining, it said in a statement.
The exploration drilling programme at the Rooderand mine has been completed and Phase 2 of the drilling has started and is expected to be completed by March 2015.
Last month, International Ferro said it is aiming to mine up to 200,000 tonnes of LG6 ore over 12 months, with the potential for further mining depending on the success of Phase 2 of the exploration drilling. This would allow it to obtain higher-grade feed stock for its furnaces, resulting in more flexible and cost effective operations.
"It is expected that mining will commence in October and beneficiation will occur at IFL's beneficiation plant," it said Monday.
International Ferro Metals shares were down 2.0% at 6.30 pence Monday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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