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Expected mine tonnage increases at Guinea project

24th July 2015

By: Dylan Stewart

Creamer Media Reporter

  

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Aim-listed exploration company Sable Mining Africa in February announced an increase in the total Joint Ore Reserves Committee- (Jorc-) compliant resource for its Nimba iron-ore project, in south-east Guinea, from 181.8-million tonnes to 205.2-million tonnes.

This increase was announced following the completion of 231 reverse-circulation drill holes as part of a resource definition exploration-drilling campaign across the mine’s plateaus 2 and 3.

The Jorc code is an Australian reporting system for categorising and publishing ore, exploration results, mineral resources and ore reserves, explains Sable chairperson Jim Cochrane. Setting minimum standards, it governs the way in which a company can publish its results.

Cochrane tells Mining Weekly that the Nimba project is undergoing a bankable feasibility study, which should be completed in the first half of 2016.

Sable’s target is to produce 1.5-million tonnes of ore in the first year of production, before ramping up to three-million tonnes of ore a year at an average in situ grade of 57.8% in the second year, once the feasibility study has been completed.

Meanwhile, a study progress report will be completed during the third quarter of this year, which will provide an update of the operational and economic viability of Nimba, taking into account ongoing detailed studies relating to mine and haul road design in Guinea, as well as the further refinement of concepts, where appropriate.

Despite the low iron-ore price, it makes sense to continue with the feasibility study, states Cochrane.

He notes that the ore mined at Nimba is of a higher quality than that of many of the other West African orebodies. It is a 200-million-tonne deposit of high-grade lump ore, with a current mine life in excess of 25 years and significant further upside available, as the larger Plateau 1 has not yet been drilled.

Further, the mine is relatively close to transport infrastructure. The Liberian border is about 30 km south of the mine and the Liberian railway line passes just below that, about 60 km from the project, he explains.

In January, Sable signed a 25-year infrastructure agreement with the government of Liberia to transport iron-ore along the corridor. A calculation of the cost of the required infrastructure in Liberia will be released as part of the feasibility study.

Cochrane adds that the Guinea government was extremely supportive in assisting Sable in obtaining a permit to export its ore through Liberia.

He states that the successful operations of aluminium producers Alcoa and Rusal, in Guinea, over many years, are testament to the viability of mining in the region, which has remained relatively politically stable for a long time.

Guinea is suited to supplying Western Europe with iron-ore, says Cochrane, adding that a number of steelmakers have shown interest in Sable’s project.

In 2010, when Sable searched for iron-ore deposits in West Africa, the iron-ore price was extremely strong, with the general belief at the time being that the iron-ore price would stay strong, states Cochrane.

After Sable had received exploration licences, one of the sites explored was the Nimba deposit and, in September 2013, Sable received the mining licence for the deposit. In the preliminary feasibility study, it was established that the project required a capital expenditure of about $300-million.

Edited by Leandi Kolver
Creamer Media Deputy Editor

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