29th Jan 2013 07:00
29 January 2013
Bellzone Mining plc
("Bellzone" or "the Company")
Forecariah Joint Venture Maiden JORC Resource Statement
Highlights:
·; Indicated JORC resource of 3.2 million tonnes of Direct Shipping Ore ("DSO") - average in situ grade of 55.8%Fe
·; Indicated and Inferred JORC resource (excluding the DSO component) of 71.1 million tonnes of surface oxide - average in situ grade of 34.7%Fe
·; Inferred JORC resource (excluding the DSO component) of 161.5 million tonnes of haematite schist - average in situ grade of 24.3%Fe
·; Additional resource development targets include:
o 40 to 50 million tonnes of haematite schist exploration potential at Yomboyeli Central
o Significant potential at Yomboyeli West for further haematite schist mineralisation
·; +15 year resource life of mine could support a production rate of 4mpta of beneficiated product grading at 58%Fe
Bellzone Mining plc (AIM:BZM) is pleased to announce a maiden JORC compliant resource at the 50:50 Forecariah Joint Venture (the "JV") in the Republic of Guinea, West Africa.
Three ore types have been classified which produce a saleable product;
1 High grade surface and near surface DSO (as defined below) Indicated and Inferred JORC resources of 3.2 million tonnes at an average grade of 55.8% Fe (cut-off at 50% Fe) which can be readily upgraded to a 58%Fe product grade ore through the currently operating crushing and wet screening plant.
2 A surface oxide (excluding the DSO component), of 71.1 million tonnes, with an average grade of 34.7%Fe (cut-off at 30%Fe), which can be upgraded to a 58% fines product by a combination of gravity and magnetic recovery processes at a mass recovery of 32.9%.
3 A weathered and fresh haematite schist (excluding the DSO component), of 161.5 million tonnes, grading at 24.3%Fe, which can be upgraded to a sinter fines product of 58%Fe by grinding, magnetic separation and reverse flotation at a mass recovery of 31.7%.
The resources defined by the Forecariah JV project are derived from four distinct areas, namely Yomboyeli central, Yomboyeli West north and south, and Layah.
The material is formed in horizontal layers with a central pod of DSO at Yomboyeli central, surrounded by the lower grading surface oxide, which overlays the weathered haematite schist and then the fresh haematite schist. At Yomboyeli West, north and south, the surface oxide overlays a haematite schist, which is similar in geological nature to that at Yomboyeli central but has yet to be fully drilled to JORC resource confidence. The surface oxide at Layah overlays a large magnetite schist whose potential has yet to be determined.
The existing crushing and wet screening operations are located 76km by road to the trans-shipping port of Konta, which is located on the south western coast of Guinea, some 40km south of Conakry. Current mining operations are targeting the 3.2 million tonnes of DSO at Yomboyeli central.
Glenn Baldwin, CEO of Bellzone, said that the definition of the JORC resources at the Forecariah JV project provides a new level of confidence in the planning for development of this strategically located iron ore region.
"The upgrade techniques required for processing the lower grade surface oxides and the haematite schist at the JV are similar to those for the lower grade Kalia oxide and supergene resources. This allowed us to provide the JV with a potential process solution and appropriate costing model to support the JORC modelling at a mineral resource level of confidence." he said.
"The JV will now undertake rigorous metallurgical test work and details of the schedules for completion of plant studies are expected to be provided later in the first quarter of 2013. The objectives will be to optimise and finalise the mining and process solutions for the surface oxide and/or haematite schist material. In the interim, the JV will focus on producing a quality product from the DSO component and use the JORC resources to develop a production plan to generate positive cash flows. I reiterate that the JV will use the Maiden JORC statement to develop a detailed production and shipping schedule in Q1, 2013 and we will release this to market in due course".
A JORC resource summary, as provided by independent expert CSA Global, of the project's resources and product specifications has been set out below. Detailed JORC resource statements are included in Appendix A.
Forecariah JV Resource Summary
Forecariah Joint Venture JORC Resource Summary | |||||||||||||||||||||
Mineralisation Zone | Fe Cut-off Grades | Classification | Million Tonnes | Fe % | SiO2 % | Al2O3 % | P % | S % | LOI | ||||||||||||
TOTAL OXIDE | 30% | Inferred | 67.28 | 34.2 | 22.1 | 16.4 | 0.12 | 0.05 | 9.8 | ||||||||||||
30% | Indicated | 3.82 | 42.6 | 19.7 | 10.7 | 0.11 | 0.04 | 7.0 | |||||||||||||
30% | Indicated +Inferred | 71.10 | 34.7 | 22.0 | 16.1 | 0.12 | 0.05 | 9.7 | |||||||||||||
Fe>50% (DSO) | Indicated | 1.85 | 55.4 | 7.1 | 7.1 | 0.08 | 0.05 | 5.5 | |||||||||||||
TOTAL OXIDE | Fe>30% | Indicated +Inferred | 72.95 | 35.2 | 21.6 | 15.9 | 0.11 | 0.05 | 9.6 | ||||||||||||
All Haematite Schist | No Lower Cut-Off | Indicated + Inferred | 161.47 | 24.3 | 51.3 | 6 | 0.19 | 0.004 | 2.4 | ||||||||||||
Fe > 50% (DSO) | Indicated + Inferred | 1.34 | 56.4 | 9.8 | 5.9 | 0.05 | 0.01 | 2.8 | |||||||||||||
Note: The CSA Mineral Resource was estimated within constraining wireframe solids based on the lithological interpretation provided by Bellzone. The Mineral Resource is quoted from blocks within these lithological envelopes above the specified Fe cut-off grades. Differences may occur due to rounding. | |||||||||||||||||||||
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Enquiries:
Bellzone Mining plc
Peta Baldwin, Corporate Affairs +44 (0) 1534 513 500
Canaccord Genuity Limited
Nominated Adviser and Broker to Bellzone +44 (0)20 7523 8000
Andrew Chubb/Tarica Mpinga
Tavistock (UK)
Jos Simson/Mike Bartlett +44 (0)20 7920 3150 / +44 (0)7899 870 450
About Bellzone Mining Plc
Bellzone Mining plc is an exploration and resource development company with iron ore and nickel/copper permits in the Republic of Guinea, West Africa. Kalia Mine Project is the Company's flagship project with a globally significant magnetite resource of 4.63 billion tonnes and 87.5 million tonnes of direct shipping ore.
The Forécariah iron ore mine commenced production in May 2012 and is a joint venture between Bellzone (50%) and China International Fund Limited (50%).
www.bellzone.com
Competent Persons Statement:
The information in this announcement that relates to in-situ Mineral Resources is based on information compiled by Grant Louw of CSA Global, consultants to the Company. Grant Louw takes overall responsibility for the Mineral Resource estimates. Mr Louw is a member of the Australian Institute of Geoscientists and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a competent Person in terms of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2004 Edition). Grant Louw consents to the inclusion of such information in this announcement in the form and context in which it appears.
The information in this announcement that relates to drilling information is based on information compiled by Jason Livingstone of Bellzone Management Services. Jason Livingstone takes overall responsibility for the drilling discussed. Mr Livingstone is a Member of the Australian Institute of Mining and Metallurgy and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a competent Person in terms of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2004 Edition). Jason Livingstone consents to the inclusion of such information in this announcement in the form and context in which it appears.
GLOSSARY
"Al2O3"
| Aluminium Oxide
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"beneficiated product" | ore that has been processed to meet marketable and saleable specifications
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"BIF"
| banded iron formation
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"DSO" | Direct shipping ore - meaning that which requires only crushing and screening before being saleable at +58% Fe grade. Some producers now include blending and washing activities in this activity
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"Fe"
| Chemical symbol for Iron
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"Indicated Mineral Resource"
| as defined in the JORC Code, is that part of a Mineral Resource which has been sampled by drill holes, underground openings or other sampling procedures at locations that are too widely spaced to ensure continuity but close enough to give a reasonable indication of continuity and where geoscientific data are known with a reasonable degree of reliability. An Indicated Mineral Resource will be based on more data and therefore will be more reliable than an Inferred Mineral Resource estimate
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"Inferred Mineral Resource"
| as defined in the JORC Code, is that part of a Mineral Resource for which the tonnage and grade and mineral content can be estimated with a low level of confidence. It is inferred from the geological evidence and has assumed but not verified geological and/or grade continuity. It is based on information gathered through the appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability
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"JORC"
| Joint Ore Reserve Committee - An internationally recognised method of classifying mineral resources
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"Magnetite"
| An oxide mineral (Fe3O4). The most common ferromagnetic mineral and principal ore
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"Measured Mineral Resource"
| defined in the JORC Code, as that part of a Measured Mineral Resource for which the resource has been intersected and tested by drill holes, underground openings or other sampling procedures at locations which are spaced closely enough to confirm continuity and where geoscientific data are reliably known. A Measured Mineral Resource estimate will be based on a substantial amount of reliable data
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"Mineral Resource" or "resource"
| a concentration or occurrence of material of intrinsic economic interest in or on the earth's crust in such a form that there are reasonable prospects for the eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided into Inferred Mineral Resources, Indicated Mineral Resources and Measured Mineral Resources
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"Oxide"
| ore containing oxides of iron, chiefly haematite, goethite and magnetite
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"P"
| Chemical symbol for Phosphorous
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"Saleable Product" | ore that is in a form that has a recognised market
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"Schist"
| a group of medium-grade metamorphic rocks, chiefly notable for the preponderance of lamellar minerals. Schist is characteristically foliated, meaning the individual mineral grains split off easily into flakes or slabs
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"S" | Chemical symbol for Sulphur
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"Supergene BIF" and "SBIF"
| BIF material that is weathered and more friable with an enriched Fe % compared to BIF in the magnetite resource
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APPENDIX A
Yomboyeli Central Mineral Resource Estimate | |||||||||||||||
Mineralisation Zone | Fe Lower Cut-off Grade | Classification | Million Tonnes | Fe % | SiO2 % | Al2O3 % | P % | S % | LOI % | ||||||
Oxide Zone | > 30% Fe | Indicated | 3.85 | 42.7 | 19.7 | 10.6 | 0.11 | 0.04 | 6.9 | ||||||
Inferred | 12.22 | 37.2 | 24.1 | 12.5 | 0.11 | 0.04 | 7.8 | ||||||||
Indicated + Inferred | 16.07 | 38.5 | 23.0 | 12.1 | 0.11 | 0.04 | 7.6 | ||||||||
High Grade Oxide Zone | > 50% Fe | Indicated | 1.82 | 55.5 | 7.0 | 7.1 | 0.08 | 0.05 | 5.5 | ||||||
All Oxide | > 30% Fe | Indicated | 5.67 | 46.8 | 15.6 | 9.5 | 0.10 | 0.05 | 6.5 | ||||||
Inferred | 12.22 | 37.2 | 24.1 | 12.5 | 0.11 | 0.04 | 7.8 | ||||||||
Indicated + Inferred | 17.89 | 40.3 | 21.4 | 11.6 | 0.10 | 0.04 | 7.4 | ||||||||
Weathered Haematite Schist | No Lower Cut-off | Indicated | 21.23 | 28.4 | 46.1 | 7.5 | 0.11 | 0.004 | 2.8 | ||||||
Inferred | 38.33 | 25.1 | 50.7 | 6.8 | 0.18 | 0.003 | 2.5 | ||||||||
Indicated + Inferred | 59.56 | 26.3 | 49.1 | 7.1 | 0.16 | 0.003 | 2.6 | ||||||||
High Grade Weathered Haematite Schist | > 50 % Fe | Indicated | 1.20 | 56.4 | 9.6 | 6.0 | 0.05 | 0.011 | 2.8 | ||||||
Inferred | 0.15 | 56.2 | 10.9 | 5.8 | 0.04 | 0.004 | 2.4 | ||||||||
Indicated + Inferred | 1.34 | 56.4 | 9.8 | 5.9 | 0.05 | 0.010 | 2.8 | ||||||||
All Weathered Haematite Schist | No Lower Cut-off | Indicated | 22.43 | 29.9 | 44.1 | 7.4 | 0.11 | 0.004 | 2.8 | ||||||
Inferred | 38.47 | 25.2 | 50.6 | 6.8 | 0.18 | 0.003 | 2.5 | ||||||||
Indicated + Inferred | 60.91 | 27.0 | 48.2 | 7.0 | 0.15 | 0.003 | 2.6 | ||||||||
Fresh Haematite Schist | No Lower Cut-Off | Inferred | 100.56 | 22.7 | 53.2 | 5.4 | 0.21 | 0.005 | 2.3 | ||||||
All Oxide | Fe > 30 % | Indicated + Inferred | 17.89 | 40.3 | 21.4 | 11.6 | 0.10 | 0.042 | 7.4 | ||||||
Fe > 50% | Indicated + Inferred | 1.85 | 55.4 | 7.1 | 7.1 | 0.08 | 0.050 | 5.5 | |||||||
All Haematite Schist | No Lower Cut-Off | Indicated + Inferred | 161.47 | 24.3 | 51.3 | 6.0 | 0.19 | 0.004 | 2.4 | ||||||
Fe > 50% | Indicated + Inferred | 1.34 | 56.4 | 9.8 | 5.9 | 0.05 | 0.010 | 2.8 | |||||||
Note: The CSA Mineral Resource was estimated within constraining wireframe solids based on the lithological interpretation provided by Bellzone. The Mineral Resource is quoted from blocks within these lithological envelopes above the specified Fe cut-off grades. Differences may occur due to rounding. | |||||||||||||||
Layah Mineral Resource Estimate | |||||||||||||||
Mineralisation Zone | Fe Lower Cut-off Grade | Classification | Million Tonnes | Fe % | SiO2 % | Al2O3 % | P % | S % | LOI % | ||||||
Oxide | Fe > 30 % | Inferred | 26.1 | 33.7 | 18.8 | 18.7 | 0.16 | 0.06 | 10.8 | ||||||
Note: The CSA Mineral Resource was estimated within constraining wireframe solids based on the lithological interpretation provided by Bellzone. The Mineral Resource is quoted from blocks within these lithological envelopes above the specified Fe cut-off grades. Differences may occur due to rounding. | |||||||||||||||
Yomboyeli West North Mineral Resource Estimate | |||||||||||||||
Mineralisation Zone | Fe Lower Cut-off Grade | Classification | Million Tonnes | Fe % | SiO2 % | Al2O3 % | P % | S % | LOI % | ||||||
Oxide | Fe > 30 % | Inferred | 21.1 | 33.4 | 23.4 | 16.7 | 0.07 | 0.05 | 10.2 | ||||||
Note: The CSA Mineral Resource was estimated within constraining wireframe solids based on the lithological interpretation provided by Bellzone. The Mineral Resource is quoted from blocks within these lithological envelopes above the specified Fe cut-off grades. Differences may occur due to rounding. | |||||||||||||||
Yomboyeli West South Mineral Resource Estimate | |||||||||||||||
Mineralisation Zone | Fe Lower Cut-off Grade | Classification | Million Tonnes | Fe % | SiO2 % | Al2O3 % | P % | S % | LOI % | ||||||
Oxide | Fe > 30 % | Inferred | 7.8 | 33.4 | 26.7 | 14.4 | 0.11 | 0.05 | 8.8 | ||||||
Note: The CSA Mineral Resource was estimated within constraining wireframe solids based on the lithological interpretation provided by Bellzone. The Mineral Resource is quoted from blocks within these lithological envelopes above the specified Fe cut-off grades. Differences may occur due to rounding. | |||||||||||||||
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Beneficiated Product Table
Yomboyeli Central Beneficiated Products Oxide, Weathered and Fresh Haematite Schist | ||||||||||||||||||||||||||||||
Mineralisation Zone | Classification Zone | % Mass Recovery | Resource Tonnes (Mt) | Recovered Tonnes (Mt) | Fe % | SiO2 % | Al2O3 % | P % | S % | LOI % | ||||||||||||||||||||
High Grade Oxide | From Indicated Zone | 87.0 | 1.82 | 1.58 | 58.55 | 5.7 | 6.28 | 0.11 | 0.02 | 4.39 | ||||||||||||||||||||
Low Grade Oxide | From Indicated Zone | 32.9 | 3.85 | 1.27 | 58.4 | 4.9 | 6.1 | 0.11 | 0.04 | 5.2 | ||||||||||||||||||||
From Inferred Zone | 32.9 | 12.22 | 4.02 | 58.4 | 4.9 | 6.1 | 0.11 | 0.04 | 5.2 | |||||||||||||||||||||
From Indicated + Inferred Zones | 32.9 | 16.07 | 5.29 | 58.4 | 4.9 | 6.1 | 0.11 | 0.04 | 5.2 | |||||||||||||||||||||
High Grade Weathered Haematite Schist | From Indicated Zone | 87.0 | 1.20 | 1.04 | 60.07 | 10.02 | 1.26 | 0.05 | 0.01 | 1.00 | ||||||||||||||||||||
From Inferred Zone | 87.0 | 0.15 | 0.13 | 60.07 | 10.02 | 1.26 | 0.05 | 0.01 | 1.00 | |||||||||||||||||||||
From Indicated + Inferred Zones | 87.0 | 1.34 | 1.17 | 60.07 | 10.02 | 1.26 | 0.05 | 0.01 | 1.00 | |||||||||||||||||||||
Low Grade Weathered Haematite Schist | From Indicated Zone | 31.7 | 21.23 | 6.73 | 57.81 | 12.23 | 1.89 | 0.04 | 0.00 | 0.57 | ||||||||||||||||||||
From Inferred Zone | 31.7 | 38.33 | 12.15 | 57.81 | 12.23 | 1.89 | 0.04 | 0.00 | 0.57 | |||||||||||||||||||||
From Indicated + Inferred Zones | 31.7 | 59.56 | 18.88 | 57.81 | 12.23 | 1.89 | 0.04 | 0.00 | 0.6 | |||||||||||||||||||||
Fresh Haematite Schist | From Inferred Zone | 24.5 | 100.56 | 24.64 | 57.76 | 11.51 | 1.49 | 0.06 | 0.01 | 0.89 | ||||||||||||||||||||
* This table containing the Beneficiated Products from Yomboyeli Central is based on limited metallurgical testing data. All tonnages and grades are conceptual based on the preliminary findings. Further metallurgical testing results are required to accurately quantify recoveries and concentrate grades from the various lithological units and grade ranges within them. Differences may occur due to rounding. | ||||||||||||||||||||||||||||||
Layah Oxide Beneficiated Products | ||||||||||||||||||||||||||||||
Mineralisation Zone | Classification Zone | % Mass Recovery | Resource Tonnes (Mt) | Recovered Tonnes (Mt) | Fe % | SiO2 % | Al2O3 % | P % | S % | LOI % | ||||||||||||||||||||
Layah Oxide | From Inferred Zone | 32.9 | 26.10 | 8.59 | 58.4 | 4.9 | 6.1 | 0.11 | 0.04 | 5.2 | ||||||||||||||||||||
* This table containing the Beneficiated Products from Layah is based on limited metallurgical testing data. All tonnages and grades are conceptual based on the preliminary findings. Further metallurgical testing results are required to accurately quantify recoveries and concentrate grades from the various lithological units and grade ranges within them. Differences may occur due to rounding. | ||||||||||||||||||||||||||||||
Yomboyeli West North Oxide Beneficiated Products | ||||||||||||||||||||||||||||||
Mineralisation Zone | Classification Zone | % Mass Recovery | Resource Tonnes (Mt) | Recovered Tonnes (Mt) | Fe % | SiO2 % | Al2O3 % | P % | S % | LOI % | ||||||||||||||||||||
Yomboyeli West North Oxide | From Inferred Zone | 32.9 | 21.10 | 6.94 | 58.4 | 4.9 | 6.1 | 0.11 | 0.04 | 5.2 | ||||||||||||||||||||
* This table containing the Beneficiated Products from Yomboyeli West North is based on limited metallurgical testing data. All tonnages and grades are conceptual based on the preliminary findings. Further metallurgical testing results are required to accurately quantify recoveries and concentrate grades from the various lithological units and grade ranges within them. Differences may occur due to rounding. | ||||||||||||||||||||||||||||||
Yomboyeli West South Oxide Beneficiated Products | ||||||||||||||||||||||||||||||
Mineralisation Zone | Classification Zone | % Mass Recovery | Resource Tonnes (Mt) | Recovered Tonnes (Mt) | Fe % | SiO2 % | Al2O3 % | P % | S % | LOI % | ||||||||||||||||||||
Yomboyeli West South Oxide | From Inferred Zone | 32.9 | 7.80 | 2.57 | 58.4 | 4.9 | 6.1 | 0.11 | 0.04 | 5.2 | ||||||||||||||||||||
* This table containing the Beneficiated Products from Yomboyeli West South is based on limited metallurgical testing data. All tonnages and grades are conceptual based on the preliminary findings. Further metallurgical testing results are required to accurately quantify recoveries and concentrate grades from the various lithological units and grade ranges within them. Differences may occur due to rounding. | ||||||||||||||||||||||||||||||
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