March 2013 Quarterly Report
Sydney, April 29, 2013 AEST (ABN Newswire) - Equatorial Resources Limited (
ASX:EQX) is pleased to present its quarterly report for the period ended 31 March 2013.
HIGHLIGHTS
Mayoko-Moussondji Iron Project
- Maiden JORC Hematite Resource of 102 million tonnes at 40.6% Fe for Mayoko-Moussondji was announced on 4 February 2013 as part of a Total JORC Mineral Resource Estimate for Mayoko-Moussondji of 767 million tonnes at 31.9% Fe.
- Metallurgical test work continued to demonstrate the potential to deliver premium iron products grading above 63% Fe with low impurities using simple beneficiation techniques.
- Drilling is continuing and there is potential to substantially increase the initial resource base. Equatorial continues to focus on near term production potential based on access to existing rail and port infrastructure.
- The Company's Development Plan for Mayoko-Moussondji was presented to the Republic of Congo government and transport authorities in a series of meetings in March 2013.
- The Development Plan currently envisages a staged production ramp up commencing with 300,000 tonnes per annum in Stage 1, 2 million tonnes per annum in Stage 2, and 5-10 million tonnes per annum in Stage 3.
- Equatorial is completing a Scoping Study which will detail the expected timeline, capital expenditure requirements, operating costs and financial outcomes of the Company's preferred development plan.
- The Scoping Study is expected to be finalised by mid-2013 and will enable Equatorial to advance discussions with potential financiers and strategic partners to support the funding of the preferred development scenario.
Badondo Iron Project
- Scout drilling campaign completed at the Badondo Prospect with excellent initial results.
- Equatorial to remodel Exploration Target for Badondo once all exploration data is received including detailed mapping and final drilling results from the scout drilling program.
- Based on encouraging exploration results to date, infrastructure development options are being assessed to enable access for larger track mounted drill rigs to conduct a future resource definition drilling program.
Corporate
- Equatorial remains in a strong finanical position with significant cash reserves and no debt. As at 31 March 2013, the Company held $56.7 million in cash.
- Following completion of the Scoping Study for Mayoko-Moussondji Equatorial expects to significantly reduce the Company's cash burn rate and focus on the progression of financing and strategic partnership opportunities intended to support project development.
For the quarterly report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-EQX-633195.pdf
Contact
Equatorial Resources Limited
T: +61-8-9322-6322
F: +61-8-9322-6558
WWW: www.equatorialresources.com.au
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