THE BOURSE WHISPERER: Sundance Resources has upgraded the High-Grade Ore Reserve for Stage One of its Mbalam iron ore project in the Republic of Cameroon and the Republic of Congo.
The JORC-Code compliant Reserve now stands at 352 million tonnes at 62.4 per cent iron.
Sundance said it considers this estimate to be significant as it confirms Mbalam now has sufficient Reserves to deliver Stage One of the project.
Global Summary of all High Grade Ore Reserves for the Mbalam project. Source: Company announcement
Stage One proposes the production of 35 Mt per year of High-Grade Direct Shipping Ore (DSO) for at least 10 years.
The Ore Reserves increase is based on the company’s previously reported current inventory of 521.7 Mt of High Grade Hematite Resources at 60.7 per cent iron and represents a conversion of some 72 per cent of Sundance’s total Indicated Mineral Resources.
Sundance chief executive officer and managing director Giulio Casello said this Ore Reserve upgrade demonstrated the capacity of the Mbalam project.
“This outstanding result emphasises Mbarga/Nabeba’s status as having some of the best quality, high grade iron ore in Africa,” Casello said in the company’s announcement to the Australian Securities Exchange.
“The quality of the high grade reserves which would be mined during Stage One is competitive in the international seaborne iron ore market.
“When combined with the over two billion tonnes of Itabirite resource we have at Mbarga, and the potential to grow our total resources of Itabirite and high-grade hematite to beyond five billion tonnes, it is clear that the Mbalam project is poised to play a significant role in the global iron ore market for decades to come.”
Sundance focussed the recent drilling programs and subsequent Ore Reserve estimate on its two principal deposits at Mbarga (in the Republic of Cameroon) and Nabeba (in the Republic of Congo).
The company said it considers it has potential to be able to grow its resources even further having already identified numerous exploration targets for drilling.