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Nayega Manganese Togo Update
Ferrex plc, the AIM quoted manganese development and iron ore exploration company focused in Africa, is pleased to announce that its Definitive Feasibility Study for an accelerated start-up at its Nayega Manganese Project in northern Togo is complete and a maiden Ore Reserve has been defined. The project is held through its 85% owned subsidiary SGM SARL. This is a significant milestone for the Company as it continues to develop Nayega into a 250,000tpa manganese export operation.
Highlights
· Preliminary DFS results indicate significant reduction in capital and operating costs for a Nayega accelerated start-up
· Maiden Ore Reserve of 8.48Mt @ 14.0% Mn
· Third party review of DFS underway as part of financing due diligence
· Full details and results of the DFS to be released on completion of third party review and mining permit issue
Ferrex Managing Director Mr. Dave Reeves said, “I am delighted to announce the completion of the Nayega DFS in conjunction with defining a maiden Ore Reserve for our proposed 250,000 tonne manganese per annum export operation. From a first look, the reduction in capital and operating costs for the accelerated start-up appears to be significant and should have a substantial positive impact on the project’s profitability. Financing due diligence is underway; a third party review of the DFS document is in progress and field trips to evaluate the project and existing infrastructure by potential financiers will commence in the near future.
“In line with these on-going developments, I look forward to releasing full details of the DFS once the third party review is complete and the mining permit has been issued.”
Further Information
Accelerated Start-up
The accelerated start-up option for Nayega involves the simplification and modularisation of the process circuit to allow rapid construction and development. Other elements of the original model remain largely unchanged, with 750,000tpa ore throughput initially being mined using owner-operated fleet and processed by scrubbing/screening and DMS, albeit using a modified process flow route. Product will be backhauled by a contractor to the Port of Lome for shipment to customers. Full details of the DFS and modified process flow route for the accelerated start-up mining option for Nayega will be announced on receipt of the mining permit and finalisation of third party due diligence.
Ore Reserve
The Ore Reserve was defined for Nayega using the Measured and Indicated Resources. The Ore Reserve is based on a Whittle optimisation using input parameters from the DFS. This has resulted in a selection of Shell 32 as the preferred mining limit based on the inputs used.
Reserve Statement
The JORC Code 2012 compliant Ore Reserve has been determined by Intermine Consultants Pty Ltd (defined as a Competent Person under the JORC code) using:
· Dilution of 2.5% added tonnes at 0% Mn grade
· Using the LOM Whittle shell 32
