JOHANNESBURG (miningweekly.com) – Following the completion of a resource definition exploration drilling campaign, Aim-listed iron-ore explorer and developer Sable Mining Africa increased its total Joint Ore Reserves Committee-compliant resource to 205.2-million tons a year at its Nimba project, in south-east Guinea.
The campaign, which saw the completion of 231 reverse circulation drill holes across Plateau 2 (P2) and Plateau 3, upgraded the resources from 181.8-million tons, at an average grade of 57.8% iron.
Resource confidence improved with the measured and indicated portion increasing by 31%, from 148.4-million tons to 195-million tons.
Sable Mining CEO Andrew Groves said that this updated resource brought the company one step closer to achieving its “ultimate goal” of iron-ore production in the second half of 2016.
Further, the company said that it anticipated a significant increase in premium direct shipping ore (DSO) – ongoing investigation had identified the upper portion of the unconsolidated domain to contain a “very low” clay content, which was expected to be screenable as a DSO product, thereby significantly increasing the potential lump and fines products available for DSO mining.
In line with this, the additional components of the company’s development continued to make headway. Mine design, scheduling and metallurgical testwork was under way to progress the marketing studies for the end product.
The DSO product would require a relatively simple crush and screen, and thereby a reduced operating cost was anticipated. The company also noted that the project had considerable further potential to increase current reserves and enhance the robust fundamentals demonstrated in the preliminary feasibility study.
Meanwhile, Sable noted that further drop tower testwork confirmed the initial overall lump yields, with higher lump yields in the P2 south area – the high proportion and quality of lump product was expected to achieve a premium to the prevailing iron-ore spot price, as it would be a direct blast furnace feed and would not require sintering.
A study progress report would be completed in the third quarter of this year, which would 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.
The company expected a full bankable feasibility study to be published in the first quarter of 2016.
"Swiftly following on the back of our landmark rail access and infrastructure development agreement with the government of Liberia, this increase in our resource further highlights the scope, scale and potential commercial value of this asset,” Groves added.