Name and Location
Mayoko-Moussondji iron project, Republic of Congo.

Client
Equatorial Resources.

Project Description
The Mayoko-Moussondji has a maiden probable ore reserve estimate of 38.5-million tonnes at 42.01% iron.

A prefeasibility study (PFS) on the Mayoko-Moussondji iron project has not only confirmed the technical and economic viability of the project, but also demonstrated the potential for strong operating cash margins.

The PFS for the project is based on the staged development of a 2.5-million-tonne-a-year hematite fines product operation, starting with a production rate of one-million tonnes a year in Year 1 and ramping up to 2.5-million tonnes a year in the fourth year of operation.

Net Present Value/Internal Rate of Return
The project has an internal rate of return of 25.1% and an estimated post-tax net present value at a 10% discounted rate of $115-million and a four-year capital payback based on a long-term index iron-ore price of $74/t (freight on board).

Value
The capital cost required to achieve throughput of 2.5-million tonnes is estimated at $181.16-million.

These capital cost estimates include a 15% contingency on all items.

Duration
Not stated.

Latest Developments
Mayoko-Moussondji’s positive project fundamentals provide a platform for Equatorial to advance discussions and negotiations with potential strategic partners and financiers. Given current market conditions Equatorial, intends to secure the support of a suitable strategic partner (at either a corporate or project level), or project funding, to enable the development of the preferred production scenario for Mayoko-Moussondji. There is no guarantee that any agreement or transaction will eventuate from the company’s current discussions.

Key Contracts and Suppliers
WorleyParsons Services (PFS).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Equatorial Resources, tel +61 8 9466 5030, fax +61 8 9466 5029 or email info@equatorialresources.com.au.
WorleyParsons Services, tel +44 208 326 5000 or fax +44 208 710 0220.