Name of the Project
Sanaga iron-ore project.

Location
The project is located near the Port of Douala, in Cameroon.

Client
West African Minerals Corporation (WAFM).

Project Description
The Sanaga deposit contains Canadian Institute of Mining, Metallurgy and Petroleum-compliant mineral resources of 82.9-million tonnes grading 32.1% iron.

The advantages of the Sanaga project’s proximity to the coast, access to existing infrastructure, favourable metallurgy and potential premium product allow for the potential development of a mine requiring relatively low capital investment with a short path to cash flow and attractive operating margins.

A scoping study completed on the project has indicated robust economics and favourable capital and operating cost fundamentals for an openpit iron-ore mine and concentrator, using transportation to the Cameroon coast either by barging down the Sanaga river and transshipping at sea or using a slurry pipeline to a port in the vicinity of Yoyo.

The project is expected to produce 2.4-million tonnes a year of premium grade 69% iron concentrate and an estimated life-of-mine of 16 to 17 years.

Jobs to Be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at a 10% discount rate, of between $262-million and $292-million and an internal rate of return  between 29% and 37%, with a 29 to 46-month payback on capital costs.

Value
Upfront capital costs have been estimated at $194-million to $298-million, depending on the transport option – barge or slurry pipeline – selected.

Duration
The project is expected to take 24 months to full production.

Latest Developments
WAFM plans to continue with feasibility work and engage with Cameroon government regulators to advance the Sanaga project towards a mining licence and conclusion of a mining convention.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
WAFM, tel +44 1624 639396, fax +44 1624 661009 or email LaRainne@burnbrae.com.