Completes Mine Design for Scoping Study
Perth, Nov 28, 2013 AEST (ABN Newswire) - Australian based iron ore development company, Kogi Iron Limited (
ASX:KFE) ("Kogi", "Kogi Iron" or the "Company") is pleased to report further progress of the Scoping Study for its Agbaja Iron Ore Project. As part of the mine planning and scheduling study ("Mine Design"), the Company has identified a possible location for a processing plant and has completed the design of pit shells within two stage areas identified for mining operations.
Plant Site
The proposed plant site location is in the north east of the Resource Area (refer ASX Announcement dated 28 September 2012). The site was selected based on its central location between the two areas identified for mining operations and is within a portion of the Resource Area that the 2011 and 2012 reverse circulation drilling programs (200m x 100m spacing) demonstrated to be weakly mineralised (refer Figure 1 in link below).
Mining Areas
Global, independent mining consulting group, Coffey has been engaged to undertake the Mine Design. Two mining areas (Stage 1 and Stage 2) have been identified, pits designed, and material movement schedules have now been completed (refer Figure 1).
The Stage 1 mining area is approximately 6.0km2 and is west of the proposed plant site. This area is estimated to contain approximately 158Mt of the 488Mt inferred mineral resource (refer ASX announcement dated 28 September 2012 for details). Targeting the magnetic fraction of the mineral resource, the average grade of material identified for mining is estimated at ~46% Fe, with a corresponding strip ratio of approximately 0.68 to 1. As currently designed this area should provide processing plant feed for an initial 14 years.
The Stage 2 mining area is approximately 2.2km2 and is to the east of the proposed plant site. This area is estimated to contain approximately 63Mt of the 488Mt inferred mineral resource. The average grade of material identified for mining is estimated at ~46% Fe, with a corresponding strip ratio of approximately 0.81 to 1. As currently designed this area should provide processing plant feed for an additional 6 years, bringing the combined total plant feed from the two areas to 20 years.
The two mining areas were identified from the 686 holes of close spaced (200m x 100m) reverse circulation ("RC") drilling and 41 PQ diamond drill holes completed between late 2011 and January 2013 within the Resource Area. The areas were selected to minimise estimated strip ratio and maximise exposure to the thickest portions of the higher grade magnetic Oolite zones of mineralisation. Drilling to date has established that the iron mineralisation within the channel iron deposits (CID) on the Agbaja Plateau is flat lying, relatively homogeneous and continuous within the mineralised channels. Recently, magnetic susceptibility measurements from all 41 PQ diamond drill holes were incorporated into the resource model which has assisted in the identification of the proposed mining areas.
Kogi's Managing Director, Iggy Tan said: "The two mining areas have an overall average strip ratio estimated at 0.72 to 1, which is an excellent result. Such a low forecast strip ratio will minimise mining costs for the first 20 years of operation and is proving to be a distinct advantage of this project. The average strip ratio for the first three years of operation is expected to be around a low 0.42 to 1. The next phase of the work is the estimation of mining costs using quotations that are currently being submitted by a number of leading mining contractors in response to requests for proposals".
"Overall, the Scoping Study is progressing well and is being completed at a high level of detail. The study is still on track to be completed by the end of Q1 2014."
To view figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-KFE-659577.pdf
About Macro Metals Limited
Macro Metals Limited is an ASX-listed company (ASX:M4M) with the intent to build a cast steel plant on the Agbaja Plateau in Kogi State, Nigeria. The project will utilise company leased iron ore deposits and will supply a cast steel feedstock to steel manufacturing and product fabricators in Nigeria and overseas.
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