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RNS Number : 8242D
Bellzone Mining PLC
22 May 2012
22 May 2012
Bellzone Mining plc
("Bellzone" or the "Company")
Forecariah Mining Authorised
-- Authorisation granted to commence production and export
-- Plant commissioned and production commenced
-- Updated resource statement expected in Q3 2012
Bellzone Mining plc (AIM: BZM) is pleased to announce approval
by the Government of Guinea to commence commercial production from
the Forecariah operations in the Republic of Guinea, West
Africa.
The authorisation was granted on 21 May 2012 by the Minister of
Mines:" On the recommendation of the Interdepartmental Committee, I
have the honour of allowing you to start the Yomboyeli [Forecariah]
iron ore operations program". Operations will now move from wet
commissioning to commercial production.
The intention is to mine and export the initial 2mt of high
grade material identified by internal resource modelling during the
first year of operations with the aim of achieving the design
capacity of 4mtpa by year end. Post the initial 2mt of high grade
material the low grade oxide will be upgraded to produce a +58% Fe
product. Off-take agreement negotiations are underway.
The authorisation imposes certain obligations related to the
current and future infrastructure requirements of the project. The
State requires:
-- Construction of the public road that runs parallel to the
haul must be completed within three months;
-- A study for rail transport of the production is to be
completed by June 2013 and construction of the rail system to
commence before the end of 2013; and
-- A bridge to be designed and constructed at the point where
the haul road intersects the National Road. This work must be done
in consultation with and to the standards required by the
Department of Public Works and Transport as well as the Department
of Mines and Geology.
In addition to the works aspects, the State requires certain
administrative actions:
-- Formal explanation of the legal structures between the licence holder and Bellzone;
-- Relinquishing of areas not included in the mining area with 30 days;
-- Submission of a plan for the recruitment and training of
local staff to occur with 30 days; and
-- Submit the complementary environmental study to ensure
compliance with international standards.
Nik Zuks, Chief Executive Officer of Bellzone, commented:
"Approval for Forecariah is a landmark event for Guinea and the
Joint Venture partners. The ability to bring a greenfield asset
into production, build a trans-shipping port and haulage road in
under 15 months is a significant achievement. The belief, focus,
dedication and combined will of the people of Forecariah, the
Government of Guinea and the JV partners have delivered Guinea's
first commercial iron ore production facility."
"The JV will continue to grow the resources and its production
capacity as an operating entity. Bellzone now has a significant
interest in an operating entity combined with a globally
significant resource under development at our flagship Kalia Iron
Mine."
The tonnage estimation information disclosed in this
announcement has been reviewed by Bernhard Neehoff BSc. Post Grad
Dip Sc.; a member of the Australasian Institute of Mining and
Metallurgy and employed as Bellzone's Exploration Manager. He has
sufficient experience relevant to the style of mineralisation and
type of deposit under consideration and to the activity which is
being undertaken, to qualify as a qualified person for the purposes
of this announcement.
Enquiries:
Bellzone Mining plc
Terry Larkan/Graham Fyfe +61 (0) 8 9420 8900
Canaccord Genuity Limited
Nominated Adviser and Joint Broker to Bellzone +44 (0)20 7523
8000
Andrew Chubb/Tarica Mpinga
Renaissance Capital Limited
Joint Broker to Bellzone +44 (0)20 7367 7777
Rob Edwards
Tavistock (UK)
Jos Simson/Paul Youens +44 (0)20 7920 3150 / +44 (0)7899 870
450
PPR (Australia)
David Ikin
+61 (0) 8 9388 0944 / +61 (0) 408 438 772
About Bellzone Mining Plc
Bellzone Mining plc is a publicly listed company on the London
Stock Exchange and was admitted to the Alternative Investment
Market (AIM: BZM) on 1st April 2010. Bellzone Mining plc
("Bellzone" or "the Company") is an exploration and resource
development company with iron ore and nickel / copper permits in
the Republic of Guinea, West Africa. Kalia Mine The Company's
flagship project, the Kalia Mine Project, is planned to commence
production in 2015 and be producing iron ore and iron ore
concentrate at a rate of 50 million tonnes per annum. The Kalia
Mine Project has 1.46 billion tonnes of contained iron in JORC
resources in 6.16 billion tonnes of magnetite, 193 million tonnes
of oxide and 92.5 million tonnes of supergene BIF. The oxide and
Supergene BIF resources have been established from just 10.5% of
the 55km(2) of the mapped surface oxides on the Kalia permit while
the magnetite has been established over 7km of the 19km Kalia I
strike. Drilling results and internal estimates indicate that the
Kalia Mine Project has the potential to host more than 10 billion
tonnes of magnetite. Forecariah JV Bellzone and CIF have fully
funded a joint venture to undertake the accelerated exploration and
development programme at CIF's Forecariah iron permits that lie
between 30 and 80 kilometres from the Guinea coast. The Forecariah
permits are held in a CIF subsidiary, Guinea Development
Corporation ("GDC") and will be transferred to the JV operations
company, Forecariah Guinea Mining SA as per the terms of the
definitive and JV shareholder agreements. Commissioning production
commenced on schedule Q1 2012 and production will be at an initial
rate of 3-4 mtpa. Other activities Bellzone has completed a mapping
and surface sampling programme identifying highly prospective
targets at its Sadeka Nickel/Copper Project. A VTEM aerial survey
has been completed and prospective targets have been identified and
a drilling programme has commenced with initial results expected Q4
2012.
About China Sonangol and China International Fund Limited ("CS
Group")
CS Group is headquartered in Hong Kong Special Administrative
Region of China, and has investment footprints in 3 continents and
more than 20 countries.
The primary activities of CS Group is in oil, gas and mineral
exploration and production, commodities trading and is also
globally active in real estate and infrastructure development,
where in particular, through China International Fund, it has
participated in the rehabilitation and development of new and
existing transport infrastructure in Angola such as New Luanda
International Airport, where it is envisioned to be a major airport
hub West Africa. Additionally, on its railway experience, CIF
rehabilitated almost 3,600 kilometres of railway in Angola. CIF has
also constructed 3 logistics base in Angola where in total occupies
925,000m(2) , as the logistical backbone to support its
infrastructure and industrial implementation and development
program, consisting cement and brick production plants, sand and
stone quarries, as well as production of industrial materials such
as steel sheets and plastic pipes.
With the strengths of its experience in large scale
infrastructure development in Africa, CS group is in the position
to accelerate the iron ore exploration and production with its
Joint Venture partner Bellzone Mining PLC.
CS Group has a vision for Africa. This vision is, through
South-South cooperation, where in partnership with private industry
and with the government, CS Group will develop public transport
infrastructure such as road, rail, seaports and airports to improve
connectivity and accessibility, as well as public utilities,
agriculture, aqua culture, public housing, construction materials,
mining and oil and gas projects, where its commercial objectives
are aligned with the needs of countries to develop the economy and
improve, ultimately, the living standards of the people.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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