Aim-listed resource company Sable Mining announced the completion of a positive preliminary feasibility study (PFS), conducted on the company’s Nimba iron-ore project, in south-east Guinea last month.

In conjunction with the development of the PFS, an initial maiden Joint Ore Reserves Committee (Jorc) reserve of 53.96-million tons grading 61.6% iron has been calculated from the August 2013 Jorc resource of 135.5-million tons at 59.4% iron.

This resource was updated in November last year to 178.4-million tons and the reserving process is expected to increase proportionately.

“This is a highly positive PFS, which provides a tangible insight into the value of Nimba,” says Sable Mining CEO Andrew Groves, adding that the project has demon- strated to be a commercially attractive high-grade direct shipping ore (DSO) iron-ore development project and, to this end, the company’s objective remains to accelerate the project’s advancement to production within the next two years.

He indicates that the PFS underscores the main value drivers that Sable Mining has been focusing on, which are high-grade ore and low capital cost.

“It is important to note the comparatively low capex of $299.3-million to bring Nimba into production, which includes a $39.7-million contingency, a key differentiator which sets this project apart from many other iron-ore development projects,” he says.
Groves points out that the maiden Jorc reserve underpinning the PFS represents only a fraction of the company’s current Jorc resource of 178.4-million tons which, in turn, covers the Plateau 2 and 3 areas.
With this in mind, he says the parameters of the PFS have significant potential to be enhanced, as additional tonnage is con- verted to a reserve category, in addition to further exploration potential from the as yet undrilled Plateau 1.
“Our sights are firmly set on achieving the additional operational and corporate milestones to bring Nimba into production. We are expecting a further resource upgrade in the near future, the development and publishing of a definitive and bankable feasibility study this year and to secure the additional key elements of our intended logistics chain in the coming months,” he commented.
Mining consultant company Xstract Mining Consultants conducted a detailed PFS on Nimba and completed the report last month. The study shows a realistic project concept and robust economics, based on the August 2013 Jorc resource and preliminary engineering.

The overall economic indicators showed this potential with limited estimated uncertainty risk and significant opportunity to further improve the project outcomes.

Based on the proposed engineering design, the costs of infrastructure and equipment were estimated at an overall weighted average of 35% accuracy, although several of these cost elements are at a higher level of accuracy and are based on vendor quotes.
Development Concept
The development concept for Nimba envisages a staged development and production build-up approach, with a production ramp-up of DSO targeting the upper consolidated material to produce a high-quality lump and fines product.
These products are based on two mobile plants to produce three-million tons a year of lump and fines DSO product and openpit, truck and shovel mining from multiple openpits for selective mining and blending.

Road haul from the mining operation, located on P2 and P3, on the south-east of Mount Nimba, will be transported to a transfer yard near Yekepa, in Liberia, approximately 65 km from the mine, where the DSO ore will be stockpiled and loaded onto rail wagons.
An initial environmental-impact assessment study and sampling have shown no material impact on the environment. Forested and lowland areas are located primarily in the valleys, which are not the targeted mining areas.

Mining pits and infrastructure are designed to avoid any rivers, springs and drainage lines or their flood zones, as well as forested areas. The detailed environmental impact study is under way and the mining permit has been approved, subject to the completion and approval of the environmental study and management plan.
The company is in the final stages of appointing a Johannesburg-based mining consultancy to lead the development of a feasibility study, which is targeted for publication this year.