Wednesday, February 17, 2010

African Minerals Announces Greater Iron Ore Reserves At Tonkolili

African Minerals has announced that the total JORC-compliant iron ore mineral resource at its Tonkolili project in Sierra Leone has grown to 10.5 billion tonnes. The company claims it is world's largest reported JORC compliant magnetite iron ore mineral resource. 9.7 billion tonnes of the JORC-compliant mineral resource has an average in-situ grade of 30.1% iron, with the remaining 0.8 billion tonnes grading 16.8% iron.

The company has also announced the placing of £80 million with institutional investors for the Phase 1 Hematite Development and Production Project.

Negotiations are ongoing with the China Railway Materials Commercial Corporation and African Minerals expects to execute definitive agreements with CRM in the next month for long term iron ore off-take, an investment by CRM and the procurement of equipment and services relating to the Project.

Production of Phase 1 Hematite iron ore is expected to commence in Q1 2011.

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