Projects

Cameroon

 

Cameroon-Congo Brazzaville Iron Belt
Cameroon Congo Brazzaville Iron Belt

Overview

Through its 100% owned subsidiary Compagnie Minière du Cameroun SA, WAFM owns exploration licenses in Cameroon spanning the coastal regions near existing and developing ports - the Sanaga permit near the Port of Douala; and the Binga permit near the Kribi deepwater seaport. A mineral resource estimate is available for the Binga permit, while the Company is currently undertaking infill drilling towards a maiden MRE at South Sanaga. Management’s focus is on de-risking the best of these near coastal opportunities to deliver substantial real value to shareholders in the form of low capital and operating cost, easily developed iron ore production.

The Company’s larger permits to the southeast in Cameroon along the extensive iron ore corridor that hosts other advanced deposits, provide significant long term growth potential. They comprise the North and South Djadom permits located immediately adjacent to the Mbalam project, and the Lélé permit to the west. Inferred MREs have been reported to date at the South Djadom permit.

 

Regional Geology

The regional prospectivity of southern Cameroon is demonstrated by significant iron ore exploration activity that is currently occurring within the region.  The CMC Permits are situated in southeastern and southwestern Cameroon, on the northern edge of the Congo Craton.  Those in the southwest are within relative coastal proximity with immediate access to existing rail, port and power infrastructure as in the Sanaga permit, or power and developing bulk iron ore terminal at Lolabe as in the Binga and Minko permits. The southeast permits comprising Djadom and Lélé are larger scale and situated close to or abutting advanced known deposits and appear from published maps to be underlain by broadly similar geology.

The Djadom permit area lies to the east and north of Sundance Resources’ Mbalam project, which has a high grade hematite ore reserve base of 775 million tonnes at 57.2% Fe. Historical aeromagnetic data indicate a continuation of the total magnetic intensity signature eastwards from the Mbalam project into the Djadom licence.

The Lélé permit area lies to the west of Mbalam and displays geological similarities with that of IMIC’s (formerly Afferro Mining) nearby Nkout project, which has a resource base of over 2.7Bt at 31.8% Fe of which 22Mt is at 62.6% Fe and 105Mt is at 51.1% Fe. Mapped occurrences of magnetite-bearing quartzites at the northwest Sanaga permit area are similar to the geological configuration at Jindal Steel & Power’s Ngovayang project.

 

Exploration Programme

History

Historical aeromagnetic data of the CMC Permits indicated a continuation of the total magnetic intensity signature eastwards from WAFM’s Binga concession, located approximately 80-100 km from the coast, to the interior eastern concession of Djadom adjacent to Sundance Resources’ Mbalam project.

The potential for high tonnage iron ore was confirmed by the Company’s 27,000 line km aeromagnetic survey in April 2012 which identified 30 discrete demagnetised zones with high tonnage potential over 100 sq km in area. Importantly, ten of the targets were on the near coastal Binga and Minko concessions, while the remaining 20 potential targets were located on the Company’s large south-eastern permits.  Two of the largest anomalies on the Djadom and Lélé concessions were interpreted as being demagnetised overlying the hinge zones of large banded iron formations. Seven of the anomalies bore geophysical signatures similar to that of the Mbarga Deposit on the adjacent Mbalam exploration permit held by Sundance Resources.  

Following the success of the Phase 1 aeromagnetic survey, a 20,000 metre Phase 2 scout drilling program was initiated in August 2012 commencing with the Binga permit and advancing eastward along the Cameroon-Congo Brazzaville iron corridor to the large-scale geophysical anomalies at South Djadom, North Djadom and Lélé. The exploration strategy was designed to capture the near term potential of the coastal permits by identifying a resource that could be brought into production in relatively short time, while advancing the large-scale potential of the interior eastern permits located adjacent to major DSO deposits in the region as the heavy rail infrastructure is developed.

 

Sanaga

WAFM’s latest exploration focus has been directed at its South Sanaga permit area located 60km from the Douala Port and within 10km of the main railway between Yaoundé and Douala.  Sanaga’s primary advantage is its proximity to the existing port, rail and power infrastructure that carries potential for enhanced economics and closer timeline to production.

In July 2014, approximately 50km of line cutting, detailed mapping and sampling of the South Sanaga priority target area have been completed yielding promising early results.  Several areas of surface exposure of magnetite bearing gneiss were outlined from mapping with surface grab sample grades ranging from 29.1% Fe to 66.3% Fe. Ground gravity and magnetic geophysical surveys identified several coincident, large magnitude gravity and magnetic anomalies. The highest priority target comprises a highly magnetic and dense source of approximately 1,000m x 500m, coincident with surface magnetite exposures. 

Sanaga

In view of these encouraging results, a modification to the 2014 work program provided for reconnaissance drilling and preliminary metallurgical test work to be undertaken at South Sanaga.

 

Results of Reconnaissance Drilling

In October 2014, results of the reconnaissance drilling program at South Sanaga comprising 1,729m of diamond drilling in seventeen holes indicated several units of magnetite gneiss dipping consistently to the NW at 40-50 degrees. These magnetite gneiss units contain significant iron intersections as summarized in the table below.

 

Significant (>30% Fe over >10m) intersections from reconnaissance drilling

Hole ID

Depth from (m)

Depth to (m)

Length (m)

Fe (%)

SiO2 (%)

Al2O3 (%)

P (%)

LOI (%)

SDD001

0.00

15.82

15.82

30.2

41.7

9.5

0.04

4.71

SDD002

36.68

53.50

16.82

31.5

47.9

3.2

0.05

0.42

SDD003

0.00

36.51

36.51

32.1

44.2

5.3

0.04

2.59

SDD004

90.00

110.00

20.00

31.0

48.9

3.0

0.05

0.61

SDD005

0.00

31.10

31.10

41.0

28.1

7.9

0.05

4.79

SDD006

129.54

162.43

32.89

30.5

48.5

3.1

0.05

0.51

SDD006

168.26

181.40

13.14

32.5

50.0

1.5

0.04

0.55

SDD007

2.23

16.80

14.57

38.1

34.1

6.2

0.05

3.62

SDD007

54.20

86.00

31.80

30.0

49.3

3.3

0.06

0.51

SDD008

0.80

16.25

15.45

31.2

41.8

8.0

0.08

4.35

SDD008

27.00

62.24

35.24

31.4

47.9

2.9

0.05

0.55

SDD011

0.00

11.14

11.14

32.5

41.5

7.1

0.06

3.57

SDD012

14.00

72.54

58.54

30.2

49.4

3.1

0.05

0.40

* Downhole intersection lengths reported above approximate true thicknesses

 

Preliminary Metallurgical Test Work at South Sanaga

The following are results of the preliminary metallurgical test work conducted by ALS Laboratories on a total of eleven samples, seven samples of fresh, and four samples of oxidised magnetite-bearing gneiss.  The metallurgy suggests that a premium concentrate can be produced with insignificant impurities. 

Davis Tube Recovery (DTR) magnetic separation at a grind size of 75 µm yielded concentrates of approximately 69% Fe at average mass recoveries of 48% for fresh, and 35% for oxidised material.

 

DTR Summary (1.8A, 3500 Gauss)

Ore type

Grind Size
(µm)

Feed Grade
(%)

Conc. Fe
(%)

Mass Recovery (%)

SiO2
(%)

Al2O3
%

P (%)

Fresh

75

36.0

68.9

48.3

3.3

0.7

0.00

Oxidised

75

34.5

69.3

35.4

1.6

0.8

0.01

As a result of the encouraging aforenoted results, the Company initiated a reverse circulation (RC) infill drilling program of approximately 2,000m to target a maiden mineral resource estimate on South Sanaga of up to 100Mt in early 2015. Concurrently, a preliminary high level logistical study on the Sanaga permit is ongoing to assess the existing infrastructure including rail access from the lease area, roads, river access, pipeline potential and port availability at Douala.

South Sanga Map

 

Binga

The Company’s Binga permit located approximately 80-100km east of the Kribi Economic Centre presents a potential rapid development option and strategic pathway to near-term cashflow generation. 

Initially four geophysical targets of high degrees of enrichment in the western sector of Binga were visually evident from surface and road-cut indications from the construction of Sinohydro's road associated with the Memve’ele hydroelectric power project, being built on the Company’s licenses between Binga and Minko.  This was followed up in late 2012 with drilling primarily orientated on two north-south lines to test a variety of magnetic and nonmagnetic geophysical anomalies.  Over 5,500 metres of widely-spaced scout drilling in 114 holes successfully confirmed the presence of at least two separate BIFs within a larger package of metamorphic rock.  22 holes and 6 trenches intersected enriched BIF or pisolitic iron enrichment in 3 clusters. 

In August 2013, the Company undertook a successful program of ground-based geophysics, defining a mineralized “envelope” over three small “test” blocks on the permit. These initial test blocks were targeted by utilising ground geophysics (gravity and magnetics) to guide the infill drilling program in follow-up to widely-spaced scout drilling and regional aeromagnetic surveys. This approach has proved highly successful in saving both time and cost on the project.

More recently, the interpretation of ground-based gravity and magnetic survey data from Binga confirms an extensive exploration target around the mineral resource on the permit.  In the central Binga region, several individual bodies each extend over an approximate 10km strike length while a small survey in the east identified two promising targets coincident with mapped mineralised material.  The new central Binga targets, which were generated independent of previous drilling data, display excellent correlation with the existing MRE on Block 8, indicating potential for the presence of further mineralised material.

Over 5,500m of widely-spaced scout drilling in 114 holes identified several sub-outcropping magnetite-rich units in two separate BIFs spanning a total length of 5km.  22 holes and 6 trenches intersected enriched BIF or pisolitic iron enrichment in 3 clusters:  Blocks 6 and 7 to the west, and Block 8 in the central region.  These three blocks formed the initial Inferred Mineral Resource Estimate of 30.5 Mt @ 29.7% Fe at a 25% Fe cut-off grade (see news release of 15 January 2014).

Binga - Inferred Mineral Resource

On 15 January 2014, the Company announced an initial Inferred Mineral Resource Estimate (“MRE”) for the Binga project, comprising  30.5 Mt @ 29.7% Fe at a 25% Fe cut-off grade, from infill core and reverse circulation (“RC”) drilling of 5,806 metres in three blocks.  The Binga resource is the third inferred MRE the Company has delivered from work conducted in the past sixteen months at two of its license areas.

This was in follow-up to the 5,581 metres of widely-spaced scout drilling in 114 holes conducted in 2012. The MRE was based on data from 1,595  metres of of drilled iron mineralisation from 75 boreholes above a total iron cut-off grade of 25% and was prepared by independent consultants, The MSA Group (“MSA”), in accordance with The Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards on Mineral Resources and Mineral Reserves (2010). 

The total Inferred Mineral Resource of 30.5 Mt @ 29.7% Fe at a 25% cut-off grade includes a higher grade colluvial and eluvial cap and near-surface enriched mineralisation of 3.6 Mt @ 32.0% Fe at a 25% cut-off grade. 

 

The Binga Inferred Mineral Resource is set out in tables 1 and 2 below:

Table 1: Binga Inferred Mineral Resource at a 25% Fe cut-off as at 13 January 2014 

 

Block

Resource Category

Tonnes (Mt)

Fe %

SiO2 %

Al2O3 %

P %

LOI%

Binga License

 

Measured

-

-

-

-

-

-

Indicated

-

-

-

-

-

-

Meas. + Ind.

-

-

-

-

-

-

Inferred

30.5

29.7

43.2

6.7

0.08

0.5

 

Notes:

(1) Mineral Resources which are not Mineral Reserves have no demonstrated economic viability.

(2) The effective date of the Mineral Resource is 13 January 2014.

(3) Mineral Resources for the Binga blocks have been classified according to The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves (2010).

(4) The iron grades presented represent total iron. The proportion of recoverable iron has yet to be determined through mineralogical and metallurgical test work

(5) WAFM has a 100 per cent. interest in the Binga license.  Accordingly, the Gross and Net Attributable Inferred Mineral Resource are the same. WAFM is the Operator of the Binga Project.

(6) Source: MSA Mineral Resource Estimate

 

Table 2:  Binga Inferred Mineral Resource

 

Binga Inferred Mineral Resource as at 13 January 2014

 

 

25% Fe Cut-off Grade

 

 

 

 

 

 

Mineralisation Domain

Tonnes

Fe

SiO2

Al2O3

P

LOI

(millions)

(%)

(%)

(%)

(%)

(%)

Supergene Enriched Cap

  3.6

32.0

36.4

10.1

0.069

5.6

Magnetite gneiss

26.9

29.3

44.1

6.3

0.076

-0.1

Total

30.5

29.7

43.2

6.7

0.075

0.5

 

Several sub-outcropping magnetite-rich units were drill-confirmed in two areas, comprising two adjacent blocks 6 and 7, and block 8, having a combined strike length of approximately 5km.  The steeply dipping iron mineralisation is hosted by banded magnetite gneiss and is open in both areas with strike extension potential for at least 20km based on previous scout drilling and airborne geophysics which also covered the adjacent Minko license.

These magnetite-rich units are partially oxidised to hematite and supergene enriched to depths of up to 15 metres. The iron grade of the non-weathered protore below the enriched cap ranges up to 37% Fe in individual block estimates depending on the relative abundance of magnetite, whereas the individual block estimates of the enriched near surface material range up to 42%. 

In view of the excellent correlation between the geophysics and the Mineral Resource models, coupled with the low phosphor and sulphur content, the Company believes that the Binga project displays the potential to be commercially viable and warrants detailed economic evaluation.  Further, the considerable strike length of the magnetite mineralisation identified to date suggests that drilling out along strike could yield sufficient Mineral Resources to support an initial production target of 3 Mt to 5 Mt per annum.

The Binga permit presents a competitive advantage for the Company on the basis of its proximity to the planned Kribi multi-user deep seaport, existing gas power plant and short truck haulage on newly paved regional road to port. The, anticipated low cost mining and energy efficient processing, and low capital port and terminal development indicate the potential for near-term cashflow.

The MRE was followed in April by preliminary metallurgical testing confirming that a saleable magnetite concentrate ranging from 61% to 64% Fe could be produced from Binga ore using a combination of fairly coarse crushing and magnetic separation with milling.  

 

Binga - Preliminary metallurgical test work

On 14 April 2014 the Company announced results of preliminary metallurgical test work performed by MINTEK, SA on a composite sample of magnetite-bearing iron ore from Binga.  The metallurgical test results confirmed that saleable magnetite concentrate from Binga could be produced ranging from 61% to 64% Fe depending on grind size.  The test work program was supervised by MDM Engineering (MDM) and included crushing, screening, milling, and low intensity magnetic separation (LIMS).  

The  test  work  program  included  crushing,  screening,  heavy  liquid  separation  (HLS),  and  low  intensity magnetic separation (LIMS), on coarse crushed fractions as well as fine milled fractions.  A 90 kg composite was made up from quarter‐core drillcore samples from four boreholes in Mineral Resource Block 6 and one each from Blocks 7 and 8. 

The program concluded that crushing to ‐10 mm followed by magnetic separation could potentially be used as a  pre‐concentration method, with high recovery of iron to magnetic product of 94%, and appreciable discard (25%) of gangue material.  Milling and magnetic separation resulted in a product with an iron grade ranging from 61% to 64% Fe.  Product mass yield ranged from 30% to 35%.  Magnetic recoveries were tested at grind sizes of 300 µm and 106 µm.  The 106 µm grind magnetic product yielded an iron grade of 64.4% and a Si02 content of 4.7%.  Furthermore, MDM’s report concluded that a grind of 212 µm is likely to yield a saleable concentrate. This grind is relatively coarse compared to values reported by other exploration projects in the region and could provide a relative process benefit of lower mill power and lower operating cost.

The table below summarises the DTR (Davis Tube Recovery) magnetic separation results at P80 (80% of milled material passing the specific screen aperture) grind sizes of 300 and 106 µm.  

    Distribution, % Grade, %
Size fraction   Mass Fe SiO2 Fe SiO2
P80 300 µm MAGS 0.5A 35.4 75.4 8.9 61.1 10.9
P80 106 µm Mags 0.5A 30.1 68.7 3.2 64.4 4.7

These  results  show  that  the  material  responded  well  to  milling  and  low  intensity  magnetic  separation (LIMS).  An appreciable liberation of magnetite from gangue was obtained at the grind sizes tested, and the recovery of iron from feed was high, resulting in a product of saleable grade.  In view of these positive results, the Company is planning additional drilling to increase the resource base at Binga and complete studies of haulage and shipping options towards a Preliminary Economic Assessment.

 

Djadom

The Company has significantly expanded its knowledge of the iron ore occurrences on its interior leases along the southeast iron ore corridor in proximity to other advanced iron ore deposits since the first phase 27,000 line km aeromagnetic survey was completed in April 2012 identifying Djadom and Lélé concessions as having large scale potential.  A number of the anomalies shared geophysical signatures similar to other major deposits in the region, including strong continuity of magnetic anomalies with the Mbarga resource eastwards onto WAFM’s Djadom permit.

To date, exploration activities on the Company’s interior licenses have been centred on the South Djadom deposit adjacent to the Mbalam deposit.  There, a combined Inferred MRE of the initial two blocks currently stands at 111.5 Mt @ 30.0% Fe at a 25% Fe cut-off grade including 15.6 Mt @ 40.7% at a 35% Fe cut-off).   See South Djadom section.  

 

North Djadom

More recently, in the second quarter of 2014, surface mapping on gravity and magnetic targets in previously unexplored areas at North Djadom has confirmed coincidence with occurrences of magnetite rich mineralised material at surface. The most promising target has surface showings of iron mineralisation over 4km of strike, underlain by a prominent geophysical target.  Grab sample assays over this anomaly returned grades ranging from 36.2% Fe to 56.1% Fe.

 
South Djadom

A 5,000 line km fixed wing airborne gravity gradiometry survey (Falcon ™) was flown over portions of the Company’s large-scale Djadom and Lélé permits. The interpretation of this gravity gradiometry survey, by independent consultants, identified numerous density anomalies co-incident with the previously delineated aeromagnetic anomalies. The magnetic anomalies were interpreted as being regionally extensive banded iron formation (BIF) similar to those hosting the neighbouring Mbarga deposit, while areas of high density contrast identified in the gravity survey, which are co-incident or adjacent to the magnetic anomalies, were interpreted as being areas of potential hematite enrichment of the BIF. 

As part of a widely-spaced scout drilling programme, 52 reverse circulation percussion holes were drilled in the southern part of the Djadom permit; 14 of the 52 holes intersected significant BIF horizons, and of these 14 holes, 5 intersected hematite-rich material either as cap material overlying a BIF protolith or as discrete horizons within a BIF package.  Several of these hematite-rich intersections lay within the priority density targets defined by the gradiometry survey.

The findings of the gravity survey significantly enhanced the Company’s ability to prioritize and confidence to select drill targets.  As a result, approximately 5,000 metres of drilling covering 98 sq km of combined gravity and aeromagnetic anomalies in this area were planned for follow-up. 

In March 2013 the first set of results of 42 vertical Reverse Circulation (RC) holes drilled at the northern-most portion of South Djadom was announced, confirming the presence of BIF/enriched BIF and hematite-rich oxide cap in 11 drill holes over an area 3km by 2km.

Minimum 30% Fe over 5 metres

Borehole

Depth from (m)

Depth to (m)

Downhole length (m)

Fe %

Al2O3 %

P %

S %

SiO2 %

LOI %

DRC025

10

21

11

45.2

4.5

0.08

0.01

23.9

6.0

DRC026

1

18

17

49.1

1.5

0.05

0.02

21.7

5.6

DRC029

1

16

15

52.7

6.0

0.06

0.03

11.1

6.5

DRC035

1

11

10

46.3

2.3

0.10

0.01

24.8

5.8

DRC037

0

10

10

50.3

7.5

0.06

0.02

13.5

6.1

DRC038

1

9

8

52.1

7.6

0.05

0.02

12.4

4.5

DRC045

0

19

19

49.9

6.6

0.06

0.02

16.5

4.5

DRC046

0

23

23

48.0

5.8

0.06

0.02

18.9

5.4

 

 

 Minimum 50% Fe over 5 metres

Borehole

Depth from (m)

Depth to (m)

Downhole length (m)

Fe %

Al2O3 %

P %

S %

SiO2 %

LOI %

DRC026

6

12

6

52.2

0.9

0.05

0.02

17.5

6.0

DRC029

4

10

6

57.7

3.8

0.07

0.02

7.0

6.0

DRC037

3

8

5

57.2

4.3

0.06

0.02

8.8

4.3

DRC038

1

6

5

56.4

5.4

0.04

0.02

10.1

3.1

DRC045

1

10

9

53.9

6.2

0.04

0.02

12.9

3.1

DRC046

1

9

8

56.1

4.4

0.03

0.01

12.5

2.2

Further vertical RC drilling extended the strike length of the known mineralisation to approximately 6km of the 25km long gravity and magnetic anomaly. This confirmation of near surface mineralisation provided the basis for an infill grid drilling program of approximately 200 holes starting at the northwest portion of the mineralisation. A second RC drill rig and two diamond drill rigs were deployed to further define geological control of the mineralisation model with the objective of establishing continuity of a maiden resource. 

 

In April 2013, the Company announced results from 27 additional scout drill holes at South Djadom which  extended the apparent area of hematite and enriched BIF mineralisation over a 6km strike length of the large (25km long) magnetic and gravity anomaly.  11 of the 27 holes intersected mineralisation (BIF, enriched BIF or a hematite-rich oxide cap) and 6 contained significant mineralisation defined as >30% Fe over >5m thickness. Deleterious element concentrations within the higher grade mineralised intersections were within ranges typical of other direct shipping ore projects in the area.  As a consequence of the successful scout drilling, a preliminary grid of 300 drill holes commenced in April 2013 over a 3,600m x 1,200m area in the northwest part of the anomalous area. 

 

Minimum 50% Fe over 5 meters

Borehole

Depth from (m)

Depth to (m)

Downhole
Length (m)

Fe %

Al2O3 %

P %

S %

SiO2 %

LOI %

DRC043

0

6

6

57.3

4.0

0.07

0.03

8.1

4.8

DRC047

3

12

9

53.7

5.3

0.12

0.03

10.4

6.3

Minimum 30% Fe over 5 meters

Borehole

Depth from (m)

Depth to (m)

Downhole length (m)

Fe %

Al2O3 %

P %

S %

SiO2 %

LOI %

DRC043

0

27

27

42.7

6.4

0.04

0.05

24.2

7.2

DRC043

36

41

5

39.0

4.3

0.05

0.02

28.3

10.1

DRC043

47

55

8

31.2

1.8

0.05

0.30

46.3

1.8

DRC047

0

24

24

45.1

6.7

0.09

0.06

19.9

7.3

DRC057

0

16

16

35.7

5.3

0.07

0.03

35.6

6.0

DRC058

4

20

16

37.1

4.2

0.09

0.01

34.1

6.9

DRC058

62

69

7

31.8

3.6

0.07

0.16

44.9

0.1

DRC061

3

11

8

32.1

15.0

0.04

0.06

27.3

9.9

DRC067

0

17

17

36.4

4.4

0.08

0.06

37.9

4.7

DRC067

69

110

41

34.7

1.7

0.07

0.16

44.3

0.3

 

In July 2013, the Company announced that exploration drilling at South Djadom identified five separate Banded Iron Formation (BIF) Blocks, two of which would be drilled in detail to establish the grade and tonnage for maiden mineral resources (Blocks 1 and 2).  At the same time, approximately 100 infill holes on the Block 1 target had confirmed the consistent presence of an iron-rich stratigraphic sequence over a 3km strike length with widths varying from 50 to 200 metres. At Block 2 a second mineralised stratigraphic sequence was traceable over 2km.

 

 

In early October 2013, the Company announced the first of two initial inferred mineral resource estimates (MREs) at South Djadom.  Block 1 returned an Inferred MRE of 76.1 Mt @ 30.3% Fe at a 25% Fe cut-off grade. This included a higher grade colluvial and eluvial cap and near-surface enriched mineralisation of 12.6 Mt @ 41.6% at a 35% Fe cut-off grade. While a greater degree of enrichment and thickness of enriched mineralisation had been envisaged, the resulting tonnage was highly encouraging indicating that further exploration could unlock considerable additional resources.

 

South Djadom Block 1 Mineral Resources as at 2 October 2013

Block

Resource Category

Tonnes (Mt)

Fe %

SiO2 %

Al2O3 %

P %

LOI%

S. Djadom Block 1

 

Measured

-

-

-

-

-

-

Indicated

-

-

-

-

-

-

Meas. + Ind.

-

-

-

-

-

-

Inferred

76.1

30.3

45.0

4.5

0.06

3.1

 

S.Djadom Block 1 Inferred Mineral Resources as at 2 October 2013

25% Fe Cut-off Grade

 

 

 

 

 

 

Mineralisation Domain

Tonnes

Fe

SiO2

Al2O3

P

LOI

(millions)

(%)

(%)

(%)

(%)

(%)

Cap

6.8

40.5

32.1

10.1

0.06

7.4

Enriched Leached Zone

17.8

33.7

39.5

5.6

0.07

5.3

Transitional

0.9

31.4

42.9

4.0

0.08

4.0

Magnetite-rich BIF

50.6

27.7

49.9

3.4

0.06

1.8

Total

76.1

30.3

45.0

4.5

0.06

3.1

  • The combined Blocks 1 and 2 Inferred Mineral Resource Estimate (MRE) for South Djadom is based on data from 10,174 metres of drilling from 126 boreholes
  • The Inffered Mineral Resource Estimate was prepared by independent consultants, The MSA Group in accordance with CIM Definition Standards on Mineral Reserves (2010).
  • The reported Inferred Mineral Resource is considered an intial resource and further drilling on the Mineral Resource at Blocks 1 and 2 may potentially increase the deposit size.

Mineral Resources which are not Mineral Reserves have no demonstrated economic viability. For further details refer to the RNS of 31 October 2013 on the Company's website.

 

The full inferred mineral resource estimate results and drilling for Block 1 at South Djadom are set out in the announcement dated 9th October 2013 on the Company’s website. 

In the same month, the second compliant Inferred MRE for South Djadom - Block 2 was released comprising 35.4 Mt @ 29.5% Fe at a 25% Fe cut-off grade, which included a higher grade colluvial and eluvial cap and near-surface enriched mineralisation of 2.6 Mt @ 37.4% Fe at a 35% cut-off grade.

 

 

Resource Category

Tonnes (Mt)

Fe %

SiO2 %

Al2O3 %

P %

LOI%

S. Djadom Block 2

 

Measured

-

-

-

-

-

-

Indicated

-

-

-

-

-

-

Meas. + Ind.

-

-

-

-

-

-

Inferred

35.4

29.5

44.9

5.5

0.06

3.8

 

S.Djadom Block 2 Inferred Mineral Resources as at 28 October 2013

25% Fe Cut-off Grade

 

 

 

 

 

 

Mineralisation Domain

Tonnes

Fe

SiO2

Al2O3

P

LOI

(millions)

(%)

(%)

(%)

(%)

(%)

Cap

  2.9

34.5

31.5

10.5

0.07

7.4

Enriched Leached Zone

11.8

31.1

40.9

6.7

0.05

7.1

Transitional

-

-

-

-

-

-

Magnetite-rich BIF

20.7

27.9

49.1

4.2

0.06

1.5

Total

35.4

29.5

44.9

5.5

0.06

3.8

The full inferred mineral resource estimate results and drilling for Block 2 at South Djadom are set out in the announcement dated 31st October 2013 on the Company’s website. 

The total compliant Inferred MRE for Blocks 1 and 2 combined stands at 111.5 Mt of Inferred Mineral Resource @ 30.0% Fe at a 25% Fe cut-off grade including 15.6 Mt @ 40.7% at a 35% Fe cut-off grade. The mineralised area extends from surface to between 100 and 150 metres below surface and remains open along strike to the southeast on Block 2, while enrichment of the primary BIF extends variably from surface to depths up to 40 metres with the majority of the enriched mineralisation shallower than 20 metres.

South Djadom Block 1 and Block 2,  Inferred Mineral Resources as at 28 October 2013

25% Fe Cut-off Grade

 

 

 

 

 

 

Mineralisation Domain

Tonnes

Fe

SiO2

Al2O3

P

LOI

(millions)

(%)

(%)

(%)

(%)

(%)

Cap

    9.7

38.7

25.6

10.2

0.06

7.4

Enriched Leached Zone

  29.6

32.7

40.1

6.0

0.06

6.0

Transitional

    0.9

31.4

42.9

4.0

0.08

4.0

Magnetite-rich BIF

  71.3

27.8

49.6

3.6

0.06

1.7

Total

111.5

30.0

45.0

4.8

0.06

3.3

 

Djadom Block 1 and 2

 

As a result of these initial MREs, the Directors believe that the Company’s South Djadom permit has potentially significant future value as a satellite development to the adjacent Mbarga Deposit once infrastructure reaches this portion of the Cameroon-Congo Brazzaville iron ore belt.

 

Further work at South Djadom is contemplated to involve preliminary metallurgical testing to determine if a commercially viable concentrate can be produced from this inferred mineral resource and further definition drilling of additional defined block areas to establish their scale and grade. The Company is also planning to assess the large untested geophysical anomalies on the North Djadom and Lele leases with surface sampling and mapping in preparation for possible drill testing in 2014. 

 

Lélé

Surface mapping on gravity and magnetic targets in previously unexplored areas of the Lélé permit has confirmed coincidence with occurrences of magnetite rich mineralised material at surface. The most promising target has surface showings of iron mineralisation over 5 km of strike, underlain by a prominent geophysical target.  Grab sample assays over this anomaly returned grades ranging from 24.1% Fe to 58.7% Fe. 

Lele