25th Jul 2008 07:10
African Minerals Limited
("African Minerals" or the "Company")
Key Engineering Projects Update
African Minerals Limited (AIM:AMI), the mineral exploration company with interests principally in Sierra Leone, West Africa, is pleased to provide the following update in respect of the key engineering projects it is undertaking in Sierra Leone.
Highlights
Company appoints RSG Global - Coffey Mining Pty Ltd ("Coffey") to undertake critical components of the definitive feasibility study for the Tonkolili Iron Ore Project
Survey work starts on Pepel Port facilities after Government of Sierra Leone gives go-ahead in line with exclusive Memorandum of Understanding announced on 6 May 2008
SENET commissioned to begin work on port and railway infrastructure engineering studies
Scott Wilson Railways commissioned to carry out railway infrastructure engineering studies, including upgrade of existing Pepel to Marampa railway and extension from Marampa to Tonkolili at Standard Gauge
Tonkolili Iron Ore Project Feasibility Study
African Minerals is pleased to announce the appointment of Coffey to undertake the following components of the definitive feasibility study for the Tonkolili Iron Ore Project:
Resource and reserve estimation
Mine geotechnical engineering and hydrogeology
Mining engineering
Tailings engineering and waste dumps
Civil engineering (mine infrastructure and process plant)
Power source analysis
Environmental studies
Social impact studies
Financial analysis
Coffey has been closely associated with the exploration and drilling programmes at Tonkolili and Marampa, including metallurgical sampling to ensure all procedures comply with internationally accepted standards of best practice. Coffey's extensive experience in these areas will also facilitate the timely completion of the feasibility and definitive studies. The bankable feasibility study in respect of Tonkolili is scheduled to be completed during 2009.
As a subsidiary of Coffey International Limited, Coffey has the support of an Australian top 300, publicly-listed company, representing one of the world's leading multi-specialist consulting groups.
Port and Railway Engineering Studies Commissioned
The Government of Sierra Leone has granted African Minerals the exclusive right, under the Memorandum of Understanding ("MoU") dated 25 April 2008, to rehabilitate the Pepel Port and loading facilities, the Pepel to Marampa railway line, and the construction of a new railway line to Tonkolili.
In accordance with the MoU the Company is pleased to report that surveying of the existing land and buildings at Pepel Port is underway, prior to the preparation of cost estimates for rebuilding these facilities.
African Minerals is pleased to announce the appointment of SENET to undertake a study to rehabilitate and upgrade Pepel Port and its related infrastructure to accommodate up to 40 million tonnes per annum of iron-based products for export.
SENET has extensive project and construction experience in Africa and is expert in cross border logistics, freighting and construction requirements in countries with limited infrastructure, with over 300 major projects completed world-wide. SENET is currently working on the Saldhana Bay railway and port facility iron ore export facility in South Africa (a >50 million tonne per annum upgrade project, including rail offloading at 8,000 tph and ship-loading at 10,000 tph).
Scott Wilson Railways had been retained by the Government of Sierra Leone and other companies operating in the country to undertake a study to rehabilitate the Pepel to Marampa railway line. The initial report was submitted and Scott Wilson Railways is in the process of updating the initial report and completing its final submission to the Government.
African Minerals has now completed its own independent preliminary study to rehabilitate the Port and Railway and is very pleased to announce that Scott Wilson Railways has been appointed by the Company to undertake a detailed engineering study on the rehabilitation and upgrade of the Pepel to Marampa Railway and the construction of a new railway line from Marampa to Tonkolili.
Scott Wilson Group plc, with nearly 6,000 members of staff, is an international consultancy offering integrated professional services in the transportation, property, environment and natural resources sectors. Scott Wilson Railways has extensive experience in railway design and construction throughout Africa and will be working in close association with SENET to ensure an efficient and cost effective bulk mineral export facility for African Minerals and other mining companies in Sierra Leone.
An integral part of the Scott Wilson Railways study will be the feasibility of upgrading the existing Pepel to Marampa railway to Standard Gauge, as well as the construction of the railway from Marampa to Tonkolili at Standard Gauge. This will facilitate domestic and foreign mineral exports as well as passenger and freight traffic.
Commenting on the update, Frank Timis, Executive Chairman of African Minerals said:
"The Tonkolili iron ore project continues to make rapid progress. This has been the catalyst for our decision to move ahead and engage and commission key consultants and engineering studies, essential for the planned definitive feasibility study, targeted for completion during 2009."
Enquiries:
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African Minerals Limited |
Tel: +44 (0) 20 7849 3002 |
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Frank Timis |
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Roy Pitchford |
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Canaccord Adams Limited |
Tel: +44 (0) 20 7050 6500 |
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Mike Jones |
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Mirabaud Securities Limited |
Tel: +44 (0) 20 7878 3360 |
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Rory Scott |
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Citigate Dewe Rogerson |
Tel: +44 (0) 20 7638 9571 |
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Martin Jackson |
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George Cazenove |
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