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Significant DSO Tonnage Increase Demonstrated in Resource Update at Nimba Iron Ore Project
Sable Mining Africa Limited, the AIM listed exploration company, has announced a further JORC Code (2012) compliant Resource update at the Nimba Iron Ore Project in south-east Guinea.
This follows the completion of 231 Reverse Circulation drill holes conducted as a resource definition exploration drilling campaign across Plateau 2 and Plateau 3.
Overview:
· Total JORC Resource increased to 205.2 million tonnes at an average in-situ grade of 57.8% iron from 181.8 million tonnes at an in-situ grade of 58.8% iron (announced 23 April 2014) – both estimated at a Fe cut-off of 40%
· Resource confidence improved with measured and indicated portion increasing by 31%, from 148.4Mt to 195.0Mt
· Significant anticipated increase in premium DSO product – on-going investigation has identified the upper portion of the unconsolidated domain to contain a very low clay content, which is expected to be screenable as a DSO product thereby significantly increasing the potential lump and fines products available for DSO mining
· DSO product will require a relatively simple crush and screen, and thereby a reduced operating cost is anticipated
· Considerable further potential to increase current JORC Reserve and enhance the robust fundamentals demonstrated in the Preliminary Feasibility Study:
o PFS was based on a maiden JORC Reserve of 53.96Mt at a grade of 61.6% Fe calculated from the August 2013 JORC Resource of 135.5Mt @ 59.4% Fe
· Metallurgical test work to progress marketing studies for Sable Mining’s end product is on-going, based on 16 HQ and 26 PQ drill hole’s core, and detailed product characteristics are expected Q3 2015
· Results confirm the deposit contains easily fragmented rock (UCS averaging 20Mpa and CWI averaging 3kWh/t), which will allow for high crushing rates at low power consumption
· Further drop tower test work has confirmed the initial overall lump yields, with higher lump yields in the P2 South area – the high proportion and quality of lump product is expected to achieve a premium to the prevailing iron ore spot price as it is a direct blast furnace feed and does not require sintering
· Re-evaluated timeline for feasibility studies to take into account Liberian infrastructure development, as per Infrastructure Development Agreement announced on 26 January 2015 – a study progress report and updated Reserve statement is scheduled for Q3 2015 and full Bankable Feasibility Study to be published by Q1 2016
Sable Mining CEO Andrew Groves said, “Swiftly following on the back of our landmark rail access and infrastructure development agreement with the Government of the Republic of Liberia, this increase in our JORC compliant resource to 205.2Mt further highlights the scope, scale and potential commercial value of this asset. It is of particular importance to note the increase in screenable DSO material together with the higher lump yields, as this will directly impact the quality of our final saleable product and potentially further enhance margins.
“The Sable Mining team continue to drive progress at Nimba forward as we approach our ultimate goal of achieving commercial iron ore production in H2 2016. In line with this, the additional components of our development continue to make headway; mine design / scheduling and metallurgical test work is underway to progress the marketing studies for our end product. I look forward to providing additional news in due course as we look to unlock the significant value of Nimba for the benefit of all stakeholders, and open up this region as a new development corridor between the Republic of Guinea and the Republic of Liberia.”
