TIDMIMIC
RNS Number : 3016G
Intl Mining & Infrast Corp PLC
03 March 2015
3 March 2015
INTERNATIONAL MINING & INFRASTRUCTURE CORPORATION PLC
("IMIC" or the "Company")
Significant Increase in Indicated Resource at Ntem
International Mining & Infrastructure Corporation plc(AIM:
IMIC), the company focused on unlocking the value of African iron
ore, is pleased to announce an updated Mineral Resource Estimate
("MRE2") for its 100% owned Ntem Iron Ore Project ("Ntem") in
Cameroon, which supersedes the Maiden Mineral Resource Estimate
(MRE1) announced on 7 May 2013. Ntem is situated close to the
Cameroon coast and offers the opportunity for early revenues for
the Company.
Highlights:
-- Total Mineral Resources increased by 60.8 Mt in total
Indicated and Inferred category to 176.3 million tonnes ("Mt") at
an average grade of 35% iron ("Fe")
-- A substantial increase of 148% in total Indicated Resource,
which now stands at 96.9 Mt at 34.92% Fe, improves confidence in
the resource
-- Total Inferred Resource confirmed at 79.4 Mt at 35.04 % Fe
-- Davis Tube Recovery metallurgical test work suggests a
premium product of average concentrate grade at 70.9% Fe, suitable
for direct reduction ("DR") steel production
-- Potential to further convert within the Mineral Resource
Statement from the Inferred category to Indicated and/or Measured
classification
Table 1: Change in total Indicated and Inferred resource from
MRE1 to MRE2
Increase
MRE1 MRE2 in tonnage
------------------------------ ----------------- ----------------- ------------
Fe (Mt) Fe (%) Fe (Mt) Fe (%)
------------------------------ -------- ------- -------- ------- ------------
Total Indicated 39.1 34.0 96.9 34.9 148%
------------------------------ -------- ------- -------- ------- ------------
Total Inferred 76.4 34.2 79.4 35.0 4%
------------------------------ -------- ------- -------- ------- ------------
Total Indicated and Inferred 115.5 34.1 176.3 35.0 53%
------------------------------ -------- ------- -------- ------- ------------
Ethelbert Cooper, Chairman of IMIC, commented: "We have made
tremendous progress with Ntem, our smaller iron ore project in
Cameroon, further increasing confidence in the resource and rapidly
advancing the project development. This second resource estimate
for the Ntem Project substantially boosts the tonnage in the
Indicated Resource category and supports extended mine life,
improving the economics of a small-scale operation with potential
to generate early revenues for the company.
Ntem is strategically located 80km from the recently completed
deep-water port at Kribi and benefits from close proximity to the
existing gas-fuelled Kribi power station. Initial metallurgical
testwork results suggest it will produce a high quality DR grade
product which gives increased margin opportunity and opens up the
possibility of multiple geographic markets for the project. The
updated resource estimate is the next step as we approach our goal
of achieving early production by transporting high-grade iron
concentrate to Kribi via a low-capex, slurry pipeline solution, and
comes ahead of the commencement of a planned Feasibility Study for
Ntem anticipated to begin this year."
Mineral Resource Estimate
MRE2 has been prepared by SRK Consulting (UK) Ltd. ("SRK")
following the Guidelines of the CIM (Canadian Institute of Mining,
Metallurgy and Petroleum) reporting code.
The definitions of Measured, Indicated and Inferred Mineral
Resources, as used in the report, are as defined in the CIM
Definition Standards on Mineral Resources and Mineral Reserves
adopted by the CIM Council.
SRK has conducted multiple site visits to the Ntem Project
during the course of the extensive drilling campaigns undertaken by
IMIC. These include a Qualified Person site visit undertaken by Mr
Dean McMinn, Senior Geologist with SRK, who is a Qualified Person
and Chartered Professional Member of the AusIMM. Further site
visits were undertaken by Paul Stenhouse, Senior Structural
Geologist, to prepare a detailed structural evaluation of both the
Fe08 and Fe11 deposits, and additional site visits were undertaken
by Colin Rawbone, Senior Resource Geologist, to ensure that
compliance to all appropriate Quality Assurance/Quality Control
("QA/QC") procedures were maintained throughout the drilling
programme.
The Mineral Resource Statement generated by SRK has been
restricted to all classified material falling within the Whittle
pit shell representing a metal price of USD1.5/dmtu for magnetite
and sinter fines concentrate. This represents the material which
SRK considers has reasonable potential for eventual economic
extraction based on a Whittle pit optimisation analysis.
Table 2 shows the resulting Mineral Resource Statement for the
combined Ntem Fe08 and F11 deposits. The statement has been
classified in accordance with the CIM Standards on Mineral
Resources and Reserves: Definitions and Guidelines by Mr Howard
Baker (FAusIMM(CP)), who at the time of writing, was a Principal
Geologist with SRK. The Mineral Resource Statement has an effective
date of 24 February 2015.
The quantity and grade of the reported Inferred Mineral Resource
in this estimation is uncertain in nature and there has been
insufficient exploration to define these Inferred and Indicated
Mineral Resources as a Measured Mineral Resource. It is uncertain
if further exploration will result in upgrading them to a Measured
Mineral Resource category.
Table 2: Combined Mineral Resource Statement for the Ntem Fe08
and Fe11 deposits
Zone Class Category Tonnes Fe % SiO(2) Al(2) P %
(Mt) % O(3) %
Oxidised Measured
Itabirite
------------ ---------------- ------- ------ ------- -------- ------
Indicated
------------ ---------------- ------- ------ ------- -------- ------
Meas. + Ind.
---------------- ------- ------ ------- -------- ------
Inferred 24.2 36.74 39.79 3.83 0.047
----------------------------- ------- ------ ------- -------- ------
Fresh Measured
Itabirite
------------ ---------------- ------- ------ ------- -------- ------
Indicated 96.9 34.92 44.41 1.59 0.056
----------------------------- ------- ------ ------- -------- ------
Meas. + Ind. 96.9 34.92 44.41 1.59 0.056
----------------------------- ------- ------ ------- -------- ------
Inferred 55.3 34.29 44.96 1.67 0.060
----------------------------- ------- ------ ------- -------- ------
Total Measured
------------ ---------------- ------- ------ ------- -------- ------
Indicated 96.9 34.92 44.41 1.59 0.056
----------------------------- ------- ------ ------- -------- ------
Meas. + Ind. 96.9 34.92 44.41 1.59 0.056
----------------------------- ------- ------ ------- -------- ------
Inferred 79.4 35.04 43.39 2.33 0.056
----------------------------- ------- ------ ------- -------- ------
Notes:
(1) Mineral Resources which are not Mineral Reserves have no
demonstrated economic viability.
(2) The effective date of the Mineral Resource is 24 February
2015.
(3) The Mineral Resource Estimate for the Ntem deposit was
constrained within lithological and grade based solids and within a
Lerchs-Grossman optimised pit shell defined by the following
assumptions; metal price of USD1.5/dmtu; slope angles of 16 and 41
in the oxide and fresh material; a mining recovery of 95.0%; a
mining dilution of 5.0%; a base case mining cost of USD1.60/t and
incremental mine operating costs of USD0.05/t/10 m; process
operating costs of USD4.20/t for crushed oxide and USD5.50/t for
crushed itabirite ore; Oxide processing recovery of 60%; Itabirite
processing recovery of 88% and G&A costs of USD0.78/t and
USD0.96/t in oxide and itabirite ore respectively.
(4) Mineral Resources for the Ntem Fe08 and Fe11 deposits have
been classified according to the "CIM Standards on Mineral
Resources and Reserves: Definitions and Guidelines (December 2005)"
by Howard Baker (FAusIMM(CP)), an independent Qualified Person as
defined in NI 43-101.
Ntem Resource Potential
An unconstrained optimisation using all classified and
unclassified material was completed at both Fe08 and Fe11 in order
to determine the amount of unclassified material that has a
reasonable prospect of economic extraction, should additional
exploration confirm the geometry and continuation of the
mineralisation and enable a classified resource to be generated.
The results of this exercise suggest that up to approximately 25 Mt
of additional fresh itabirite at Fe08 and approximately 9 Mt of
additional fresh itabirite at Fe11 with the potential for economic
extraction lie outside of the Whittle pit shells used for
constraining the classified resources.
In addition, SRK recognises the potential for further conversion
within the Mineral Resource Statement from the Inferred category to
Indicated and or Measured Classification.
Database Validation
The QA/QC programme for Ntem involves the insertion of blank,
standard and duplicate samples into the sample stream at an
insertion rate of 1 in 20. The Company uses multiple standards of
variable grade, representative of the deposit. Samples are assayed
at the accredited ALS Minerals laboratory Johannesburg. SRK found
that the results of the QA/QC programme indicated that the Ntem
assay database is suitable for use in a Mineral Resource
Estimate.
Data Verification
SRK have verified that the data on which MRE2 is based is
correct and viable for use in a Mineral Resource Estimate. This
verification included an assessment of QA/QC data, sample
preparation and assay methodologies, density data, data inputs and
survey data used in the estimate. Data was validated by using field
checks, statistical methods and evaluating the Company's
protocols.
MRE2 Drilling
The Mineral Resource Statement presented here is based on a
total of 109 diamond drill holes for 17,020 m. This includes drill
hole data from 79 drill holes for 10,495 m at the Fe08 deposit and
30 drill holes for 6,525 m at the Fe11 deposit, completed by
Caminex from the commencement of the phase 1 drill programme in
April 2012 through to the most recent phase 3 drilling
campaign.
Geological Modelling, Resource Estimation Assumptions,
Parameters and Methods
Both the Fe08 and Fe11 geological models were generated in
Leapfrog Mining by an SRK geologist, initially using downhole
logged itabirite as an explicit control on model geometry. Downhole
structural data, outcrop structural and geological mapping and the
ground / airborne magnetic survey maps were all used to guide the
orebody geometry between drillholes. Upon receipt of the final
assay database, the itabirite models were visually verified with
respect to downhole Fe assays and corrected to capture any high
grade material and remove any low grade material at the margins of
the deposit. A base of oxidation surface was also generated, based
on downhole Loss on Ignition ("LOI") assays within the overall
itabirite package and the logged weathering code within the waste
rock. The itabirite geology model was cut by the modelled oxide
surface to divide each itabirite body into fresh and oxide
portions.
Prior to grade interpolation, the desurveyed drillhole databases
for Fe08 and Fe11 were coded by the geological domains generated in
Leapfrog Mining, and composited to 2 m for a geostatistical study.
Variograms of the major elemental components (Fe, Al(2) O(3) and
SiO(2) ) at both Fe08 and Fe11 showed reasonable structure,
allowing variogram models to be produced. The results of the
variography were used in the interpolation to assign the
appropriate weighting to the sample pairs utilised to calculate the
block model grades. The total ranges modelled were also
incorporated to help define the optimum search parameters and the
search ellipse radii dimensions used in the interpolation.
Grade interpolation was conducted in CAE Studio 3 ("Datamine"),
by ordinary kriging. Due to the current interpretation of the Fe08
deposit, comprising significant ductile folding, SRK adopted the
unfold technique for two of the fresh itabirite domains. Unfolding
was deemed unnecessary for the oxide domains and remaining Fe08
fresh itabirite domains, which are characterised by no, or only
minor localised folding. For Fe11, a process known as dynamic
anisotropy was applied during the grade interpolation for all
domains, in order to honour the open fold geometry of the itabirite
model.
The interpolated block models were validated through visual
checks, swath plot analysis and a comparison of the mean input
composite and output model grades. SRK is confident that the
interpolated block grades are a reasonable reflection of the
available sample data.
Metallurgical Testwork
Davis Tube Recovery ("DTR") testwork was conducted on 125
composite samples of the fresh magnetite intervals from 26
drillholes. The average head grade for the 125 composite samples
was 36.3% Fe. The average concentrate grade was 70.9% Fe with very
low deleterious materials. The average Fe recovery was 81.7% and
the average mass yield was 41.8%.
It is expected that the Fe11 itabirite is likely to respond to
Davis Tube testwork in a similar manner to the Fe08 itabirite, as
described above.
For further information, please contact:
International Mining & Infrastructure Corporation www.imicplc.com
plc
Ethelbert Cooper, Chairman
Haresh Kanabar, Chief Financial Officer +44 (0) 20 7290 3340
Strand Hanson Limited - Financial & Nominated www.strandhanson.co.uk
Adviser +44 (0) 20 7409 3494
James Spinney / Ritchie Balmer / James
Bellman
Pareto Securities Limited - Sole Broker www.paretosec.com
Guy Wilkes / Will Slack +44 (0) 20 7786 4370
Buchanan www.buchanan.uk.com
Mark Court / Sophie Cowles +44 (0) 20 7466 5000
About IMIC
IMIC's strategy is, in conjunction with its partner AIOG, to
develop fundable solutions to infrastructure provision for iron ore
resources in West and Central Africa. In support IMIC will seek to
acquire interests in iron ore projects that would benefit from a
specific infrastructure solution. IMIC made its first investment
with the Dec 2013 acquisition of Afferro Mining Inc, taking
ownership of four iron ore deposits in Cameroon, the most advanced
asset being Nkout. IMIC plans to continue to develop its assets,
including accelerating the feasibility studies of the smaller Ntem
deposit, which is located only 80km from Kribi deep water port.
IMIC's focus will initially be on iron ore opportunities in West
and Central Africa. The demand for iron ore is currently being
driven by China which consumes approximately 70 per cent. of the
world's current annual production. As the urbanization of China
continues demand for iron ore is expected to remain at significant
levels through to 2030. The iron ore projects currently identified
in West and Central Africa have the potential to produce at least
400 million tonnes of iron ore each year. This would establish
Africa as a global player, alongside Australia and Brazil, in the
iron ore industry.
In order to help deliver its infrastructure solutions, IMIC and
AIOG have established strategic partnerships with various Chinese
state owned companies. These companies are involved in railway and
port construction, power, iron ore beneficiation and iron ore
marketing. These relationships are intended to give IMIC and AIOG
the ability to work with relevant governments and financial
institutions to deliver infrastructure solutions and to guarantee
the onward sale of iron ore in China.
IMIC shares are traded on the London Stock Exchange's AIM market
under the ticker symbol IMIC.
Qualified Person
The information in this press release that relates to the
current drilling programme is based on information compiled and
reviewed by Mr Howard Baker.
Mr Howard Baker has 19 years' experience in the mining industry
and 10 years' experience in the exploration, definition and mining
of iron ore mineral resources. Mr Baker, who at the time of writing
was a full time employee of SRK Consulting (UK) Ltd, is a Member of
the Australian Institute of Mining and Metallurgy, and has a
Chartered Professional status (FAusIMM (CP)) and sufficient
experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person ("CP") as defined in
the 2012 Edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves, 2012
Edition' and as a Qualified Person ("QP") (by ROPO "Recognised
Oversees Professional Organisation") as defined in terms of
NI43-101 standards for resource estimation of iron mineralisation
of this style. Mr Baker consents to the inclusion in the
announcement matters relating to the geology, exploration results
and mineral resources in the form and context in which it appears
and confirms that this information is accurate and not false or
misleading.
A Qualified Person site visit was undertaken by Mr Dean McMinn.
Mr McMinn, who is a full time employee of SRK Consulting (UK) Ltd,
is a Member of the Australian Institute of Mining and Metallurgy,
and has a Chartered Professional status (MAusIMM (CP)) and
sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
("CP") as defined in the 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves, 2012 Edition' and as a Qualified Person ("QP") (by ROPO
"Recognised Oversees Professional Organisation") as defined in
terms of NI43-101 standards for resource estimation of iron
mineralisation of this style.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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