Ferrex Shares Rise on Positive Mining Reports

PUBLISHED: 07 Feb 2012 @ 02:51 | Comments (0) | More info about Lou Gutheil

Ferrex Plc (LSE:FRX) published a Resource Drilling update on its operations in Africa prompting a share price increase of 18.07% on volume of 4,005,513 by late-morning trading.

Update on Operations

Dave Reeves, Ferrex Managing Director, summarised the positive report saying that two projects in particular, the Nayega Manganese Project in Togo and the Malenane Iron Ore Project in South Africa “have returned impressive results and we are on track to deliver maiden resources at both projects in Q1 2012 and Q2 2012, respectively.”

Nayega Manganese Project

A combination of positive results includes an intial assay report that indicates that the vein depths, widths, and percentage of manganese content are consistent with previous projections for this 92,390ha site. Expectations are that the actual mining of the manganese will be relatively easy venture as mining goes. Reeves put even more positive spin on the strength of the project, saying”this project also has the potential to supply significant early cash flow to the Company if the metallurgical testwork supports on-ground observations.” The Company holds an 85% interest in the Nayega Project.

Malelane Iron Ore Project

Findings that the ore at the Malelane sit is very coarse grind size has raised expectations that the company will be able to have significant reductions in capital and operating costs. The grind size is ideal for pre-concentration to 55% CaFe. Reeves explained that “Should be achieved through lower power consumption and smaller plant requirements, and when combined with the proximity to existing transport infrastructure, both rail and port, improves the already compelling economic potential of this project.” The Company holds a 74% interest in the Malelane Project.

Company Spotlight

Ferrex concentrates its efforts on low capital intensive iron ore and manganese mining projects in South Africa, Togo, and Mozambique that indicate potential for relative quick return on investment.

References
↑ Nayega Project
↑ Malelane Project
↑ Ferrex website

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