Name and Location
El Aouj iron-ore project, Mauritania.

Client
El Aouj Mining Company, owned 50% by Sphere Minerals and 50% by SNIM, the Mauritanian State mining company.

Project Description
The El Aouj project has Joint Ore Reserves Committee-compliant mineral resources totaling 4.4-billion tonnes and ore reserves of about 758-million tonnes at an average grade of 35% iron.

The project is based on the production of a sinter feed product derived from fresh magnetite ore, beneficiated to produce a 66% iron concentrate.

The prefeasibility study (PFS) has shown that the project is feasible and can be built and expanded in stages, based on ‘modules’, with an estimated capacity of 9.5-million saleable tonnes a year for each module. The PFS has proved the feasibility for two modules, and subsequent work has identified the layout for three modules at El Aouj East.

The resource scale allows for multiple project options as part of a staged development to match market conditions.

At the proposed initial development scale of 9.5-million tonnes a year, the nominal mine life, based on exploiting all the currently defined resource, would be more than 200 years, and, even at 45-million tonnes a year, the resource life would be more than 40 years.

Net Present Value/Internal Rate of Return
Not stated.

Value
Capital costs are estimated at $866.1-million.

Duration
Not stated.

Latest Developments
El Aouj is evaluating proposals for a feasibility study.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sphere Minerals, tel +61 2 9253 6700 or fax +61 2 9241 6898.