LONDON MINING - UPDATED RESOURCES FOR MARAMPA AND WADI SAWAWIN PROJECTS
(Thomson Reuters ONE) -
Quoted on London AIM (LOND LN) and Oslo Axess (LOND NO)
("London Mining" or the "Company")
UPDATED RESOURCES FOR MARAMPA AND WADI SAWAWIN PROJECTS
London Mining ("the Company"), the UK based developer and operator of mines to
supply the global steel industry, today announces resources for the Ghafal
portion of the primary ore body at its Marampa project in Sierra Leone and an
updated resource for its tailings reprocessing operation. The Company also
announces an increased resource for its Wadi Sawawin Project.
Highlights
Marampa, Sierra Leone
* Inferred Resource of 122.8 Mt grading 31.2% Fe estimated at a 15% Fe cut-off
for the smaller Ghafal deposit of the primary ore body
* Indicated Resource of 37.8 Mt grading 22.2% Fe at a 15% Fe cut-off for
Marampa Tailings (previously 29.6 Mt at 22.7% Fe at a cut-off of 15% Fe)
Wadi Sawawin, Saudi Arabia
* Total resource of 382 Mt at 39.6% Fe at a 30% Fe cut-off (previously 230 Mt
at 41% Fe at a cut-off of 30% Fe)
* * 247.5 Mt at 39.8% Fe Indicated Resources at a 30% Fe cut-off (previously
157 Mt at 41% Fe at a cut-off of 30% Fe)
* 134.5 Mt at 39.2% Fe Inferred Resources at a 30% Fe cut-off (previously
73 Mt at 40% Fe at a cut-off of 30% Fe)
* Resources will now support a planned 20 year mine life for an operation
producing 5Mtpa of direct reduction pellets
Marampa, Sierra Leone
The Marampa Project is located 120km from Freetown in Sierra Leone and is 100%
owned and operated by London Mining. London Mining is developing a tailings
reprocessing operation at Marampa which will deliver first production of
1.5 Mtpa of 66% Fe concentrate suitable for sinter feed in Q1 2011 and has
potential to expand to 3 Mtpa. Drilling is currently underway to fully define
Marampa's two main primary ore bodies, Masaboin Hill and Ghafal, as well as
other mineralisation on the licence to develop a full scale mining plan to
expand total production at the project to 5-8 Mtpa by the end of 2013. Ghafal is
the smaller of the two main deposits with a surface expression of approximately
0.15km2, with significant additional resource tonnage expected from the 1.4km2
Masaboin Hill deposit.
Snowden Mining Industry Consultants ("Snowden") has estimated a resource for the
Ghafal portion of the primary ore body of 122.8 Mt grading 31.2% Fe Inferred at
a 15% Fe cut-off. Snowden has also estimated an updated Indicated Resource for
the tailings of 37.8 Mt grading 22.2% Fe at a cut-off of 15% Fe. This tailings
resource is increased to 42.5 Mt grading 21.2% Fe if a lower cut-off of 10% Fe
is applied. Resources are reported in accordance with the JORC Code 2004.
London Mining is well advanced in completing a preliminary desk top technical
study on the full primary ore body and will complete a total of 18,000m of
drilling over the course of 2010 to fully define the resource on the 13.82km2
licence area. This area includes the central Masaboin Hill deposit and an area
that may connect Masaboin Hill and Ghafal as well as additional satellite ore
bodies. Results so far from Masaboin Hill have been promising and show a similar
style of mineralisation to Ghafal.
This drilling is expected to result in a further estimate of resources with an
expected upgrade to the resource classification to be announced in Q3 2010.
Further metallurgical work is being undertaken to determine the suitability of
concentrate from the primary ore body for either sinter or blast furnace pellet
feed. This work will feature in a prefeasibility study for the expanded Marampa
operation scheduled for completion by the end of 2010.
Marampa Tailings Resources as at March 2010 at cut-off of 10%
Category Tonnes Fe Al2O3 SiO2 CaO P S
(Mt) (%) (%) (%) (%) (%) (%)
Measured
Indicated 42.5 21.24 10.16 50.54 0.08 0.06 0.01
Inferred
Total 42.5 21.24 10.16 50.54 0.08 0.06 0.01
Marampa Tailings Resources as at March 2010 at cut-off of 15%
Category Tonnes Fe Al2O3 SiO2 CaO P S
(Mt) (%) (%) (%) (%) (%) (%)
Measured
Indicated 37.8 22.22 9.14 50.75 0.08 0.05 0.01
Inferred
Total 37.8 22.22 9.14 50.75 0.08 0.05 0.01
Ghafal primary ore body resource as at March 2010 at a 15% cut-off
Category Tonnes Fe Al2O3 SiO2 CaO P S
(Mt) (%) (%) (%) (%) (%) (%)
Measured
Indicated
Inferred 122.8 31.19 4.67 39.40 2.35 0.14 0.01
Total 122.8 31.19 4.67 39.40 2.35 0.14 0.01
Wadi Sawawin Project, Saudi Arabia
Wadi Sawawin is located 60km from the Red Sea port of Duba in Saudi Arabia and
is held through Saudi London Iron Limited, the Saudi joint venture company held
50:50 by London Mining and National Mining Company. Saudi Arabia was one of only
four countries to post an increase in crude steel production in 2009 and Wadi
Sawawin is ideally located to take advantage of the forecast demand for DR
pellets both locally and in the wider Middle East and North Africa ("MENA")
region as well as the seaborne markets.
The Wadi Sawawin Project comprises three exploration licences covering an area
of 211km2 - the Western Group, the Eastern Group and Wadi Alhamra. The current
resource falls on an exploitation licence with an area of 3.5km2, contained
within part of the Western Group.
Snowden have reported an increased resource for the project of 382 Mt at 39.6%
Fe comprising 247.5 Mt at 39.8% Fe Indicated Resources and 134.5 Mt at % Fe
Inferred Resources. All resources are reported in accordance with the JORC Code
2004 and based on a cut?off of 30% Fe.
These resources will now allow London Mining to plan for a mine life beyond 20
years, at an annual production rate of approximately 12Mtpa of feed to the
process plant for 5Mtpa of direct reduced ("DR") quality pellets. The increase
in the Wadi Sawawin resource reflects the inclusion of drill results completed
since the reporting of the resource in December 2009.
Metallurgical test work undertaken by British Steel over a 20 year period has
identified a processing methodology that has been confirmed by Ausenco, Worley
Parsons and Corus Consulting. The process is expected to produce a high grade
concentrate suitable for pelletising as a direct reduction furnace feed.
London Mining continues to drill in the Western area to confirm additional
reserves and intends to extend drilling to the Eastern and Al Hambra licence
areas during 2010.
Wadi Sawawin Mineral Resources as at March 2010, reported at a 30% Fe cut?off.
Category Tonnes Fe Al2O3 SiO2 CaO P S
(Mt) (%) (%) (%) (%) (%) (%)
Indicated 247.5 39.79 2.48 31.00 3.81 0.31 0.13
Inferred 134.5 39.15 2.43 31.90 3.85 0.30 0.11
Total 382.0 39.56 2.46 31.32 3.82 0.31 0.12
Michael Andrew, Divisional Manager Applied Geosciences of Snowden Mining
Industry Consultants BSc, MAUSIMM, who meets the criteria of a qualified person
under the AIM Rules ? Guidance for Mining, Oil and Gas Companies, has reviewed
and approved the technical information contained within this announcement.
Graeme Hossie, CEO of London Mining plc, said, "The resources announced today
mean that we have added over 650Mt to our resource base since the beginning of
the year. We now have sufficent confidence in Marampa's resources to begin
planning for the expansion to steady state production of 5-8Mtpa. Wadi Sawawin
now has sufficient resources to support 5Mtpa of DR pellet production for at
least 20 years These results support London Mining's strategy of becoming a mid
tier supplier to the global steel industry."
For more information, please contact:
London Mining Plc +44 20 7201 5000
Graeme Hossie, Chief Executive Officer
Rachel Rhodes, Finance Director
Thomas Credland, Head of Investor Relations
Liberum Capital Limited (Nominated Advisor/Broker) +44 20 3100 2000
Clayton Bush/Ellen Francis
Brunswick Group +44 20 7404 5959
Carole Cable / Daniel Thöle
Crux Kommunikasjon AS +47 97 56 19 59
Charlotte Knudsen
The Company's website can be found at www.londonmining.co.uk
About London Mining
London Mining is focused on identifying, developing and operating scalable mines
to become a mid-tier supplier to the global steel industry. Its four principal
assets in Sierra Leone, Saudi Arabia, Greenland and China all have deliverable
production with potential for expansion. The Company listed on the Oslo Axess on
9 October 2007 and on AIM in London on 6 November 2009. It trades under the
symbols LOND.L and LOND.NO (Reuters) and LOND LN and LOND NO (Bloomberg).
Notes to Editors
Glossary of Technical Terms:
A comprehensive design and costing study of the
selected option for the development of a mineral
project in which appropriate assessments have
been made of realistically assumed, geological,
mining, metallurgical, economic, marketing,
legal, environmental, social governmental,
"Bankable Feasibility Study" engineering, operational and all other modifying
factors which are considered in sufficient detail
to demonstrate at the time of reporting (i) that
extraction is reasonably justified (economically
mineable) and (ii) the factors finance the
development of the project.
Iron
"Fe"
The part of a Mineral Resource for which quantity
and grade or quality can be estimated on the
basis of geological evidence and limited sampling
and reasonably assumed, but not verified,
geological and grade continuity. The estimate is
"Inferred Mineral Resource" based on limited information and sampling
gathered through appropriate techniques from
locations such as outcrops, trenches, pits,
workings and drill holes.
the part of a Mineral Resource for which
quantity, grade or quality, densities, shape and
physical characteristics can be estimated with a
level of confidence sufficient to allow the
appropriate application of technical and economic
parameters, to support mine planning and
evaluation of the economic viability of the
"Indicated Mineral Resource" deposit. The estimate is based on detailed and
reliable exploration and testing information
gathered through appropriate techniques from
locations, such as outcrops, trenches, pits,
workings and drill holes that are spaced closely
enough for geological and grade continuity to be
reasonably assumed.
Australasian Institute of Mining and Metallurgy
Joint Ore Reserves Committee (JORC) code on
"JORC" mineral resources and ore reserves.
The part of a Mineral Resource for which
quantity, grade or quality, densities, shape and
physical characteristics are so well established
that that they can be estimated with confidence
sufficient to allow the appropriate application
of technical and economic parameters, to support
production planning and evaluation of the
"Measured Mineral Resource" economic viability of the deposit. The estimate
is based on detailed and reliable exploration,
sampling and testing information gathered through
appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill
holes that are spaced closely enough to confirm
both geological and grade continuity.
A concentration or occurrence of natural, solid,
inorganic or fossilised organic material in or on
the Earth's crust in such form and quantity and
of such a grade or quality that it has reasonable
prospects for economic extraction. The location,
"Mineral Resource" quantity, grade, geological characteristics and
continuity of a mineral resource are known,
estimated or interpreted from specific geological
evidence and knowledge.
Million metric tonnes.
"Mt"
A million metric tonnes per annum.
"Mtpa"
A natural aggregate of one or more minerals
which, at a specified time and place, may be
"ore" mined and sold at a profit, or from which some
part may be profitably separated.
A small spherical marble-sized ball of iron ore
"pellet" used in steelmaking.
A comprehensive study of the viability of a
mineral project that has advanced to a stage
where the mining method, in the case of
underground mining, or the pit configuration, in
the case of an open pit, has been established,
and where an effective method of mineral
processing has been determined. This study must
include a financial analysis based on reasonable
"Pre-feasibility Study" assumptions of technical, engineering, operating
and economic factors and evaluation of other
relevant factors which are sufficient for a
qualified person acting reasonably, to determine
if all or part of the Mineral Resource may be
classified as a mineral reserve.
The raw mined material as it is delivered by the
mine cars, skips, or conveyors and prior to
"run-of-mine (ROM)" treatment of any sort.
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
[HUG#1399550]
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Datum: 31.03.2010 - 02:05 Uhr
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