MARAMPA RESOURCE INCREASED BY 70%
(Thomson Reuters ONE) -
* Marampa primary resource increased 70% to 906Mt at 32% Fe
* Significant new higher grade weathered resources discovered
* New mine plan to be completed as part of expansion PFS due in Q1 2011
* Phase 1a production to start by end of Q3 2011 to allow reconfiguration of
operations
Graeme Hossie, CEO of London Mining said: "In the last 12 months London Mining
has increased the Marampa primary resource tenfold. Marampa now has a resource
base to support a long term mining operation at 16Mtpa with low capital
intensity and simple logistics allowing London Mining to become a major new
entrant onto the seaborne market during 2011. We expect to incorporate the new
resources into a fully integrated mine plan for Phase 1 and the Phase 2
expansion by the end of Q1 2011 with the new weathered resources expected to
substantially extend the life of Phase 1."
London Mining today announces a resource for year ending 31 December 2010 and
project update for the Marampa mine in Sierra Leone.
Snowden Mining Industry Consultants now estimate a total resource of 906Mt
grading 31.7% Fe comprising 379Mt at 32% Fe in the Indicated category and 527Mt
at 32%Fe in the Inferred category. These resources represent an increase of 70%
to the total primary resource of 533Mt at 31% Fe reported in November 2010 and a
tenfold increase of the historical primary resource of 84Mt grading 37% Fe
reported at the time of London Mining's admission to AIM. The new resource also
includes 24Mt at 38% Fe of highly weathered ore and 107Mt at 35% Fe of
moderately weathered material that can be considered for inclusion in the Phase
1 mine plan. A detailed resource statement is attached with this announcement. A
further 20,000m of drilling is planned to upgrade Inferred resources to the
Indicated category.
These additional resources are to be considered as part of a PFS for the Phase
2 mine plan and revised Phase 1 production plan to be reported by the end of Q1
2011. London Mining is currently applying a two phase approach to the
development of Marampa. Phase 1 considers the processing of tailings from
previous operations and weathered ore to produce 3.6Mtpa of high grade
concentrate for blast furnace sinter production. Phase 2 is currently scoped for
production of up to 16Mtpa of blast furnace pellet feed from unweathered ore.
The sinter concentrate and blast furnace pellet feed will both have Fe content
of around 65% and no significant levels of impurities are expected. Both
products are expected to be readily marketable on the seaborne market.
Testwork indicates that 100% of highly weathered material and around 75% of
material considered moderately weathered can be processed in the Phase 1
processing circuit with the installation of additional milling capacity. The
remaining moderately weathered material will be stockpiled for processing in
Phase 2. The current Phase 1 mine plan is based on the August 2010 resource
estimate and considers a blend of tailings (37Mt grading 22% Fe) and weathered
ore (22Mt grading 35%) at a 70:30 ratio to produce run of mine ore with a head
grade of 27% Fe. It is expected that the new resources will allow for
significant increases to mine life and capacity to be considered for both Phases
1 and 2.
As a result of the new resources, London Mining is in the process of relocating
several components of its Phase 1 operation, notably site accommodation
(previously a refurbished block from former operations), tailings storage and
drinking water supply in order to allow all new resources to be included in an
updated production plan. It is expected that this will result in the delay of
mechanical completion and commissioning from end Q2 to the end of Q3 2011 with
shipment of first concentrate following within one month of first production.
The major long lead item (namely the WHIMS plant) is now on site with the power
generation sets expected on site during Q1 2011.
The critical path has been reviewed by the London Mining management team
together with its consultants Ausenco (plant) and Ausenco Sandwell (logistics).
Owner operator mining is to initially take place from an existing run of mine
tailings stockpile with a contract mine fleet expected on site in the fourth
quarter. Negotiations are also close to completion for trucking, barging and
floating cranes for transhipment.
London Mining will provide a further detailed update on Marampa and its other
projects in an operations review to be released on 24 January. London Mining is
also hosting an analyst site visit to the property. Presentation materials from
the site visit will be available on the Company website.
Resources are reported in accordance with the JORC Code 2004.
Summary of Marampa resource as at December 2010 reported at a 15% Fe cutoff
+---------------------+---------------+------+----+-----+----+---+---+----+----+
| | |Tonnes| Fe |Al2O3|SiO2|CaO|MnO| P | S |
| Area |Classification | (Mt) |(%) | (%) |(%) |(%)|(%)|(%) |(%) |
+---------------------+---------------+------+----+-----+----+---+---+----+----+
| | Indicated |274.6 |31.8| 4.9 |38.8|2.8|0.7|0.12|0.01|
| +---------------+------+----+-----+----+---+---+----+----+
| Masaboin | Inferred |156.9 |32.6| 4.7 |37.9|2.7|0.7|0.12|0.01|
| +---------------+------+----+-----+----+---+---+----+----+
| |Total Resources|431.4 |32.1| 4.8 |38.5|2.8|0.7|0.12|0.01|
+---------------------+---------------+------+----+-----+----+---+---+----+----+
| | Inferred |237.2 |31.5| 4.9 |39.1|2.8|0.7|0.12|0.01|
| Masaboin NE +---------------+------+----+-----+----+---+---+----+----+
| |Total Resources|237.2 |31.5| 4.9 |39.1|2.8|0.7|0.12|0.01|
+---------------------+---------------+------+----+-----+----+---+---+----+----+
| | Indicated | 11.1 |34.9| 5.2 |38.6|1.1|0.1|0.11|0.01|
| +---------------+------+----+-----+----+---+---+----+----+
| Campbell Town Ridge | Inferred | 10.8 |31.8| 5.2 |40.7|1.9|0.1|0.16|0.01|
| +---------------+------+----+-----+----+---+---+----+----+
| |Total Resources| 21.9 |33.4| 5.2 |39.6|1.5|0.1|0.14|0.01|
+---------------------+---------------+------+----+-----+----+---+---+----+----+
| | Inferred | 62.9 |32.7| 4.5 |37.7|2.6|0.7|0.12|0.01|
| Hospital Ridge +---------------+------+----+-----+----+---+---+----+----+
| |Total Resources| 62.9 |32.7| 4.5 |37.7|2.6|0.7|0.12|0.01|
+---------------------+---------------+------+----+-----+----+---+---+----+----+
| | Indicated |285.7 |31.9| 4.9 |38.8|2.7|0.7|0.12|0.01|
| Combined (excl +---------------+------+----+-----+----+---+---+----+----+
| Ghafal) | Inferred |467.8 |32.1| 4.8 |38.5|2.7|0.7|0.12|0.01|
| +---------------+------+----+-----+----+---+---+----+----+
| |Total Resources|753.5 |32.0| 4.8 |38.7|2.7|0.7|0.12|0.01|
+---------------------+---------------+------+----+-----+----+---+---+----+----+
| | Indicated | 93.2 |30.2| 4.9 |40.6|2.5|1.3|0.15|0.01|
| +---------------+------+----+-----+----+---+---+----+----+
| Ghafal | Inferred | 59.6 |30.0| 4.9 |40.4|2.6|1.4|0.15|0.01|
| +---------------+------+----+-----+----+---+---+----+----+
| |Total Resources|152.8 |30.1| 4.9 |40.5|2.5|1.3|0.15|0.01|
+---------------------+---------------+------+----+-----+----+---+---+----+----+
| | Indicated |378.9 |31.5| 4.9 |39.3|2.7|0.8|0.12|0.01|
| +---------------+------+----+-----+----+---+---+----+----+
|Total Marampa Primary| Inferred |527.4 |31.8| 4.8 |38.8|2.7|0.8|0.12|0.01|
| +---------------+------+----+-----+----+---+---+----+----+
| |Total Resources|906.3 |31.7| 4.8 |39.0|2.7|0.8|0.12|0.01|
+---------------------+---------------+------+----+-----+----+---+---+----+----+
Russell Turner, Principal Consultant, Snowden Mining Industry Consultants MAIG,
who has 10 years experience in Iron Ore and is familiar with the deposit type in
question in order to be considered as a competent person in accordance with the
JORC code requirements, has reviewed and approved the information that relate
specifically to the resources figures contained within this announcement.
Full Marampa primary resource and glossary attached
The Company's website can be found at:www.londonmining.co.uk
For more information, please contact:
London Mining Plc
Thomas Credland, Head of Investor Relations +44 20 7201 5000
Liberum Capital (Nominated Advisor/Broker)
Clayton Bush/Christopher Kololian +44 203 100 2000
Crux Kommunikasjon AS
Charlotte Knudsen +47 97 56 19 59
Brunswick Group
Carole Cable / Daniel Thöle +44 20 7404 5959
About London Mining
London Mining is focused on identifying, developing and operating mines to
become a mid-tier supplier to the global steel industry. Its five assets in
Sierra Leone, Colombia, Greenland, Saudi Arabia and China all have deliverable
production with potential for expansion. The Company listed on the Oslo Axess on
9 October 2007 and on AIM in London on 6 November 2009. It trades under the
symbols LOND.L and LOND.NO (Reuters) and LOND LN and LOND NO (Bloomberg).
Glossary of Technical Terms
"Al2O3" Alumina.
"Fe" Iron.
"inferred mineral resource" The part of a mineral resource for which quantity
and grade or quality can be estimated on the basis
of geological evidence and limited sampling and
reasonably assumed, but not verified, geological
and grade continuity. The estimate is based on
limited information and sampling gathered through
appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes.
"indicated mineral resource" the part of a mineral resource for which quantity,
grade or quality, densities, shape and physical
characteristics can be estimated with a level of
confidence sufficient to allow the appropriate
application of technical and economic parameters,
to support mine planning and evaluation of the
economic viability of the deposit. The estimate is
based on detailed and reliable exploration and
testing information gathered through appropriate
techniques from locations, such as outcrops,
trenches, pits, workings and drill holes that are
spaced closely enough for geological and grade
continuity to be reasonably assumed.
"JORC" Australasian Institute of Mining and Metallurgy
Joint Ore Reserves Committee (JORC) code on mineral
resources and ore reserves.
"measured mineral resource" The part of a mineral resource for which quantity,
grade or quality, densities, shape and physical
characteristics are so well established that that
they can be estimated with confidence sufficient to
allow the appropriate application of technical and
economic parameters, to support production planning
and evaluation of the economic viability of the
deposit. The estimate is based on detailed and
reliable exploration, sampling and testing
information gathered through appropriate techniques
from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely
enough to confirm both geological and grade
continuity.
"mineral resource" A concentration or occurrence of natural, solid,
inorganic or fossilised organic material in or on
the Earth's crust in such form and quantity and of
such a grade or quality that it has reasonable
prospects for economic extraction. The location,
quantity, grade, geological characteristics and
continuity of a mineral resource are known,
estimated or interpreted from specific geological
evidence and knowledge.
"Mt" Million metric tonnes.
"Mtpa" A million metric tonnes per annum.
"ore" A natural aggregate of one or more minerals which,
at a specified time and place, may be mined and
sold at a profit, or from which some part may be
profitably separated.
"sinter" Process for agglomerating ore concentrate in which
partial reduction of minerals may take place and
some impurities may be expelled prior to subsequent
smelting and refining.
"sinter feed" Iron ore product used to make sinter.
"SiO2" Silica.
WHIMS Wet High Intensity Magnetic Separation - the
process that will be used for ore processing at
Marampa.
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
Primary Resources December 2010:
http://hugin.info/137683/R/1480031/415634.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: London Mining Plc via Thomson Reuters ONE
[HUG#1480031]
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Datum: 17.01.2011 - 08:00 Uhr
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News-ID 50479
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