JOHANNESBURG (miningweekly.com) – The maiden mineral resource estimate of Aim-listed West African Minerals’ Cameroon assets has revealed a high-quality iron-ore resource with the potential to be developed into a low-cost, low stripping ratio openpit mining operation.
The Sanaga licence recorded a Canadian Institute of Mining, Metallurgy and Petroleum- (CIM-) compliant inferred mineral resource of 82.9-million tonnes at 32.1% iron (Fe) at a 25% Fe cutoff grade to a depth of 150 m below surface.
The CIM is comparable to the National Instrument 43-101 technical standard.
The results also showed a higher-grade oxidised cap and near-surface enriched mineralisation of 15.8-million tonnes at 37.3% Fe at a 25% cutoff grade.
President Brad Mills said in an update to shareholders on Thursday that the preliminary metallurgical testwork on the Sanaga licence confirmed that West African Minerals could potentially produce a premium grade of about 69% Fe and quality concentrate at a favourable mass recovery of about 40%.
“[Further,] the project's close proximity to existing rail, power and port infrastructure suggests minimal capital expenditures will be required to develop export infrastructure,” he added.
The group, which had a cash position of $7-million, had also completed and submitted a summary environmental- and social-impact assessment to the government of Cameroon for review and approval.
Mills stated that the company was positioned to pursue further development of the Sanaga project when warranted by the market, as well as examine other acquisition opportunities that could add significant near-term value to West African Minerals.