Half Year Financial Report to December 2013
Perth, Mar 17, 2014 AEST (ABN Newswire) - During the financial half year the principal activities of Kogi Iron Limited (
ASX:KFE) was continuation of the evaluation of its wholly owned Agbaja iron ore project in Kogi State, Federal Republic of Nigeria ("Agbaja Project", "Agbaja" or the "Project"). Importantly, in September 2013 the company commenced a Scoping Study (upgraded to a Preliminary Feasibility Study on 13 December 2013) to assess the technical and economic viability for the development and operation of a mine and processing plant to produce 5 million tonnes per annum or iron ore concentrate at Agbaja. The results of the Preliminary Feasibility Study were highly positive and announced on 29 January 2014. The company has since commenced planning for a Definitive Feasibility Study for the Project, which is subject to securing the necessary funding.
Review of Operations
The loss after tax for the consolidated entity for the half year ended 31 December 2013 was $1,359,475 (31 December 2012:
$1,417,627). The loss is primarily attributable to corporate costs of the consolidated entity in support of the Preliminary Feasibility Study and other associated evaluation work for the Agbaja Project.
Corporate
On 23 August 2013, the company announced the appointment of Mr Ignatius "Iggy" Tan as Managing Director. Mr Tan is an executive with over 30 years' experience in the mining and chemical industries, and a track record of project development having been involved in the commissioning and start-up of seven resource projects in Australia as well as overseas. Mr Tan commenced with the company on 26 August 2013.
During the half year, the company raised a total of $2.2 million, being: $1.2 million via the placing of 13,642,223 shares at $0.09 each to professional and sophisticated investors, which included personal investments of $500,000 and $100,000 respectively by the company Chairman Dr Ian Burston and Non-Executive Director Mr Don Carroll; and $0.97 million via a Share Purchase Plan whereby 10,972,214 shares were issued to existing shareholders at $0.09. Funds raised from both the placement and the Share Purchase Plan were used to complete the Agbaja Project Preliminary Feasibility Study and general operating expenses.
The Annual General Meeting of the company held on 29 November 2013, the meeting was well attended with all resolutions put to shareholders approved on a show of hands.
Operational
During the half year the company:
- Commenced a Scoping Study (upgraded to a Preliminary Feasibility Study on 13 December 2013) to assess the technical and economic viability for the development and operation of a mine and processing plant to produce 5 million tonnes per annum of iron ore concentrate at the Agbaja Project. The results of the study were announced on 29 January 2014 and were highly positive.
- Announced a 20% increase in Mineral Resources for the Agbaja Project. The global Mineral Resource for Agbaja increased to 586 million tonnes (previously 488 million tonnes) with an average in-situ iron grade of 41.3% and for the first time included an Indicated Mineral Resource of 466 million tonnes at 41.4% Fe, with the balance of the Mineral Resource classified as Inferred (120 million tonnes at 41.1% Fe). The Updated Mineral Resource was reported in accordance with the JORC Code (2012) and was on important mile stone for the company.
- Established a significant new Exploration Target for the Agbaja Project and associated exploration licence areas, the new Exploration Target totals 1.8 - 3.0 billion tonnes at a grade of 32 - 48% Fe and represented a 50% increase in tonnage over the previously reported Exploration Target of 1.6 - 1.7 billion tonnes at 35 - 50% Fe (refer to ASX announcement dated 16 September 2013 for details).
- Announced the drill results from the 23 hole scout reverse circulation drilling program (468 metres) completed in March 2013 (refer ASX announcement dated 17 July 2013 for details). The program was designed to test the continuation of iron mineralisation to the south and west of the Stage 1 Resource Area within EL12124 (the Agbaja Project) and the holes were drilled on 2 to 3km spaced traverses oriented roughly east-west, with spacing's of approximately 0.5 to 1km along the traverses.
- Completed an Environmental and Social Impact Assessment for the Agbaja Project. The study was undertaken by Nigerian Environmental consultants Greenwater Environmental Services Limited and commenced in January 2013.
Importantly for the Agbaja Project, the ESIA concluded that there are no environmental or social impediments for the development of the Project (refer ASX announcement dated 7 January 2014 for details).
To view the full report, please visit:
http://media.abnnewswire.net/media/en/docs/76763-ASX-KFE-671094.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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