JOHANNESBURG (miningweekly.com) – Aim-quoted iron-ore and manganese development company Ferrex on Thursday announced that it had found an additional area of high-grade iron-ore mineralisation at its Mebaga direct-shipping ore (DSO) project in Gabon, through geological mapping.

The company said it had completed the geological mapping designed to evaluate the entire 19 km strike length of the project’s banded iron formation, with the additional high-grade mineralisation having been found 7 km east of the area drilled by Ferrex in 2013.

"I am delighted that we have kick-started 2014 by discovering a new area of high-grade iron-ore mineralisation at the Mebaga DSO grade project.  Rock chips have been taken from the area and we look forward to reporting the results when the assays are returned,” Ferrex MD Dave Reeves said.

The information obtained during the geological mapping would be used to design a further drill programme to be undertaken in mid-2014.

“Planning for the impending drill programme is well under way to expand on what we delineated last year,” Reeves said.

He added that the company’s proposed transaction with mining major Anglo American and its subsidiary Kumba Iron Ore, which involves Anglo and Kumba funding and managing the exploration of Mebaga and surrounding areas over a period of two years, had received approval from the Gabon Ministry of Mines.

The agreement’s term sheet also included a provision that Anglo would refund Ferrex for the majority of the exploration spend to date.

Anglo and Kumba also, through the agreement, had the option to move to 100% ownership of the project through a purchase agreement.

Alternatively, if Anglo and Kumba did not elect to buy the project, Ferrex would retain its 100% ownership.

“We are now waiting for the outcome of the due diligence process and subsequent required corporate approvals to be given,” Reeves commented.