JOHANNESBURG (miningweekly.com) – Detailed mine scheduling conducted as part of metallurgical testwork at the Plateau 2 area of Sable Mining Africa’s 205.2-million-ton Nimba iron-ore project, in Guinea, has indicated a life-of-mine of more than 20 years and highlighted the operation’s ability to sustain production of high-quality premium-grade lump and fines products over the initial ten years.
The study pointed to the potential production of lump product grades of 63.33% iron and fines product grades of 62.11% iron, while a third medium-grade fines product was being considered, with grades of 58.58% iron returned.
The company said in a statement on Wednesday that the mechanical and thermal properties of the proposed premium lump product were expected to further enhance the price premiums and marketability of the products, while the rate and degree of reduction from iron oxide to iron and the porosity of the lump product were considered “excellent”, positively impacting blast furnace productivity and direct feed suitability.
Testing to determine the sinter characteristics of the fines product was ongoing, with initial tests performing to expectation and final results due in September.
Further metallurgical testwork was also under way to progress marketing studies for the end product, with additional upside available from Nimba’s Plateau 3 and the larger, undrilled Plateau 1.
Sable Mining CEO Andrew Groves said the metallurgical results underpinned the quality of the Nimba product and the potential commercial viability of the project.
“[At these] grades, Nimba is able to sustain the production of high-quality premium-grade lump and fines products for ten years [using] relatively low-cost crush and screen methods, positively impacting the already compelling economics of the project.
“Further, as Plateau 2 is one of three plateaus within our licence area, there remains significant further upside opportunity, the development of which could potentially be funded from revenues generated at Plateau 2, positively impacting the project’s capital requirements,” he said in a statement.
Sable’s focus would now be on further defining the end-product quality grade so that it could begin to assess export opportunities into markets such as Europe and China.
Describing the test results as “excellent”, Sable’s broker, GMP Securities, said in a note on Wednesday that, while it was not logical to pursue a “go-it-alone” or “build-it-yourself” approach in the current iron-ore price environment, Nimba’s size and quality of product were sufficiently better than nearby peers.
Moreover, existing mine infrastructure meant that the project offered significant value, either in a joint venture (JV) with neighbours or as a long-term play on an iron-ore recovery.
“However, a JV is never as straightforward as simply teaming up with one’s peers; metallurgy is critically important, and we flag that the September sinter test results will be a key catalyst as it will allow any parties interested in co-development to begin evaluating the project,” it maintained.