Name and Location
Mbalam-Nabeba iron-ore project, between Cameroon and the Republic of Congo (RoC).

Client
Sundance Resources.

Project Description
Mbalam-Nabeba has total Joint Ore Reserves Committee-compliant global high-grade hematite resources of 775.4-million tonnes at 57.2% iron, of which 748.0-million tonnes are classified as indicated. These mineral resources are include reserves of 436.3-million tonnes at 62.6% iron.

The project further boasts 4.05-billion tonnes of itabirite hematite resources at 36.3% iron, with 1.43-billion tonnes at 38% iron classified as indicated resources.

The project scope will be to mine 35-million tonnes a year from iron deposits, in Cameroon and the RoC; construction of a 510 km rail line from the Mbarga mine, in Cameroon, and a 70 km rail spur line, connecting the Nabeba mine, in the RoC. The rail line/spur will transport  iron-ore to the Cameroon coast.

The scope will also include construction of a new deep-water iron-ore export terminal at Kribi, which will accommodate bulk iron-ore carriers of 300 000 deadweight tons in size.

The project will be completed in phases, with Stage 1 focusing on a direct shipping ore (DSO) project for a minimum ten years and Stage 2 extending the life of the operation by more than 15 years of production of high-grade itabirite hematite concentrate.

Stage 1’s mineral reserves currently total 436.3-million tonnes at 62.6% iron.

Value
A capital expenditure of $4.6-billion will be required to start up the DSO operation.

Duration
Construction is planned for late 2014, with a targeted first iron-ore shipment planned for the last quarter of the same year.

Latest Developments
Sundance has  identified several potential interested parties and possible structures for the commercialisation of the Mbalam-Nabeba project, following constructive meetings with interested parties in the past few months.

“We have not only received encouraging support for these proposed structures out of China, but also from non-Chinese companies, all of whom believe Mbalam‐Nabeba is one of the few and best development‐ready iron-ore greenfield projects currently on the market. We are now moving to building this project,” says Sundance CEO and Managing Director Giulio Casello.

He says that following approval from the board of directors on the business strategy, the company is moving forward with a clear plan in place.

As outlined in the African Mining Investment Conference presentation released to the ASX in June 2013, specific commercial structures that could form the basis for funding the development of the project have been identified. These include a joint venture (JV) for the mines and transport infrastructure, a separate JV for the mine and an independent infrastructure solution.

Sundance plans to run two concurrent processes. The first is at mine level for a JV and/or secured take or pay iron-ore offtake contracts. The second entails the development of the deep-water port and rail infrastructure through engineering, procurement and construction (EPC) contracts or an independent infrastructure consortium. In the coming months Sundance will start a process to elicit responses in these two areas.

The company also plans to start a tender process for EPC and independent rail and port infrastructure.

It further aims to have agreements in place for the full production capacity of 35-million tonnes a year and be in final negotiations for building the infrastructure with EPC contractors by the end of 2013.

Key Contracts and Suppliers
WorleyParsons (prefeasibility study).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Sundance Resources, tel +61 8 9220 2300, fax +61 8 9220 2309 or email info@sundanceresources.com.au.