Name and Location
Télimélé iron project, Guinea.

Client
Nemex Resources.

Project Description
Although Nemex has only drilled 5% of the current plateau areas that contain the ironstone mineralisation at Télimélé, it has successfully defined a mineral resource of 258-million tonnes at 37.3% iron, which includes 16.8-million tonnes at 55.1% iron of potential direct shipping ore (DSO).

A concept study completed on the project envisages a start-up operation of 2.5-million tonnes a year of DSO iron product when mining the near-surface T1 mineralisation at Télimélé.

The development strategy involves mining near-surface DSO, followed by on-site crushing and screening to produce about 60%-iron lump product that will be hauled 136.5 km by road to a purpose-built quay for transshipping to an offshore vessel.

Value
Initial capital expenditure is estimated at between $60-million and $130-million, depending on whether processing facility and transshipment operations are owned or contracted.

Duration
Not stated.

Latest Developments
The next phase of planned exploration and development work at Télimélé is further drilling on the four priority prospects – Gorohi, Kourou, Boulere North and Madina – where previous scout drilling reported good thicknesses of T1 mineralisation to raise the mineral resources to 40-million tonnes at 50% to 60% iron and to complete a feasibility study.

Discussions continue with several potential partners to explore the possibility of funding the next phase of drilling, predevelopment and a bankable feasibility study at Télimélé.

Nemex remains confident that funds to advance the project will be found, as the project offers an incoming party a DSO project close to the coast with very low expected capital cost.

Further, the Minsitry of Mines has renewed Nemex’s Télimélé mining licence for two years.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Nemex Resources, tel +61 8 9388 2277, fax +61 8 9380 6761 or email info@nemexres.com.au.