Kogi Iron kicks of scoping study at Agbaja iron ore project
THE DRILL SERGEANT: Kogi Iron Limited (ASX: KFE) has commenced a detailed scoping study for a first stage 5 million tonne per annum iron ore operation at the company’s 100 per cent-owned Agbaja iron ore project located in Kogi State, Republic of Nigeria, West Africa.
Kogi describes the Agbaja project as a shallow, flat lying channel iron deposit that is positioned close to existing, underutilised rail and port infrastructure.
The company’s stated vision is to establish a mining and beneficiation operation on the Agbaja plateau initially producing 5Mtpa of iron ore concentrate.
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Source: Company announcement
The Agbaja deposit consists of shallow, friable channel iron deposits, which Kogi considers to lend itself to a mining operation utilising surface miners, which it anticipates will reduce the mining operating costs compared to a conventional hard rock iron ore operation requiring drill and blast.
Kogi said it expects to commence mining ore, at a grade of around 42 per cent iron, which will be crushed and further milled and fed to a beneficiation plant, producing a final upgraded iron ore concentrate of 55 to 56 per cent iron.
“There have been tremendous achievements to date with drilling and the establishment of a significant JORC-compliant resource at Agbaja, which has the potential to support a profitable iron ore operation,” Kogi Iron Limited managing director Iggy Tan said in the company’s announcement to the Australian Securities Exchange.
“In addition, there have been excellent studies to identify an optimal transport solution for the first stage of the project, as well as geological and metallurgical testwork to lay the foundations for the viability and feasibility of the project.
“Based on this background work and studies, the company is now in the position to launch a detailed Scoping Study on a very firm mining, production and transport scenario.
“Subject to feasibility, and funding, the company intends to commence iron ore concentrate production at Agbaja at the rate of 5 million tonnes per annum.
“In addition to the technical and commercial feasibility of the project, the Scoping Study will also address potential markets for the Agbaja iron ore.”