3rd Mar 2014 11:06
LONDON (Alliance News) - Sable Mining Ltd Monday said its first JORC reserve at the Nimba Iron Ore project in Guinea supports premium direct shipping ore production at low capital intensity.
The AIM-listed iron-ore exploration mining company said its maiden reserve of 53.96 million tonnes at a grade of 61.6% iron was calculated from its August 2013 JORC resource figure of 135.5 million tonnes at 59.4% iron, which was updated in November to 178.4 million tonnes.
The reserve figure was calculated in conjunction with the company's Preliminary Feasibility Study which found a production rate for the site of three million tonnes per year, ramping up from 1.5 million tonnes per year in its first year, based on a life of mine of over 25 years.
The PFS also showed a capital cost to production of USD299.3 million with free on board operating costs of USD44 per tonne to transport to Europe and USD49 per tonne to Asia.
The company also said it now plans a Bankable Feasibility Study in the second-half 2014 and targets commencement of production in the first quarter 2016.
Sable Mining shares were up 2.5% to 10.89 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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