African Iron strengthens Mayoko Resource

THE DRILL SERGEANT: Australian-based African Iron has updated the JORC mineral resource at its 92 per cent-owned Mayoko iron ore project, located in the Republic of Congo, West Africa by 121 million tonnes.

The Mayoko mineral resource now comprises an Indicated and Inferred hematite direct shipping ore component of 44 million tonnes at 55 per cent iron and an Inferred beneficiable DSO component of 77 million tonnes at 41 per cent iron.

African Iron said it had improved its geological confidence at Mayoko as a result of infill drilling.

This heightened confidence has resulted in 58 per cent of the DSO Resource being classified as Indicated (25Mt at 55 per cent iron).

The company said the beneficiable DSO Resource represents iron enriched banded iron formation (BIF) above fresh magnetite bearing BIF.

Sighter metallurgical testwork carried out by the company has demonstrated the beneficiable DSO material produces a saleable fines product with low levels of deleterious elements through crushing and screening followed by a combination of conventional dense media, and gravity separation.

The initial Inferred Mineral Resource for the Mayoko project was announced in May 2008 at 33Mt at 56 per cent iron.

That estimate was based on data from 26 vertical diamond drill holes of a 38 hole drilling program undertaken between 1974 and 1975.

In 2010, a further 18 diamond drill holes were completed to confirm the strike and dip continuity, thickness and grade, of the iron mineralisation at Mayoko.

On 23 February this year, African Iron commenced a reverse circulation and diamond drilling program specifically designed to upgrade the DSO Resource and to define an initial beneficiable DSO Resource.

As of October 2011, a total of 22 diamond holes had been completed for inclusion in the 2011 Resource Update.

This drilling was concentrated on the Mount Lekoumou prospect with future drilling to extend along strike to Mount Mipoundi.

African Iron said the 2011 Resource Update will underpin the commencement of a pre-feasibility study with a primary focus on early cash flow from mining DSO, and thereafter beneficiable DSO, material and the export of five million tonnes per annum of iron ore.

“The 267 per cent increase in Mayoko’s JORC resource will enable the company to immediately commence a pre-feasibility study investigating the commencement of production by mid-2013 through the mining of Direct Shipping Ore, and thereafter beneficiable DSO material, to generate early cash flow,” African Iron independent non-executive chairman Ian Burston said in the company’s announcement to the Australian Securities Exchange.

“Shareholders can look forward to further resource growth and value creation in 2012 with only 28 per cent of the known Mt Lekoumou to Mt Mipoundi mineralised strike drilled, and beyond 2012 with Mt Lekoumou to Mt Mipoundi representing only two of the known prospects contained within the company’s 1000 square kilometre Mayoko exploration licence.”