8th Mar 2018 14:33
The company also said that it has decided to conduct further study work on the Early Production Project, including assessment of project feasibility, scope of operations and project economics.
Zanaga Iron in addition is continuing test work to produce a pellet product of sufficient quality which meets industry standards and be commercially marketable. It is evaluating two logistics routes to the iron ore project.
"The early production project is targeting a low capital cost operation utilising existing road and potentially rail transportation solutions as well as existing port infrastructure. If we are successful in developing this low capital cost solution, we expect the project would be attractive for third party financing," Chairman Clifford Elphick said.
"The project team have also conducted initial studies both internally and with third parties to assess the potential capital and operating costs savings that could be achieved for the 12 million tons per annum initial phase of the staged development project, as outlined in the feasibility study completed in 2014. The initial review of these figures has indicated potential for major capital and operating cost savings that encourages us to continue to pursue pathways available for development of this much larger development phase, simultaneously with the EPP option currently under review," Elphick added.
The company expects to release further updates on the early production project study in the second quarter.
Shares in Zanaga Iron Ore were down 15% at
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