Bellzone is committed to the development of a US$4.45 billion, 50 mtpa iron ore facility with supporting rail and port infrastructure for the export of iron ore in the Republic of Guinea, West Africa, by 2014. This is
“The Kalia Iron Project”
Geological investigations and resource drilling conducted from November 2005 to June 2009 have indicated that a significant iron bearing body exists in the region of Kalia. This programme, along with the site, camp and services development, involved 4 drill rigs, up to 40 expatriate drillers, geologists and service staff. Over 120 Guinean staff were employed. Including Geologists, Doctor and drillers.
During this time, Bellzone conducted an intensive diamond-drilling programme, which in July 2009 resulted in providing a maiden inferred JORC magnetite resource of 2.39 billion tonnes.
The results of the 2009 programme have been used to plan the 2010 drilling programme to increase the inferred JORC magnetite and upgrade the inferred JORC resource to indicated JORC resource.
The objective of the project is to
Mine:
A 50 million tonne per annum iron ore operation which will be delivered in two stages:
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Traditional drill, blast and haul mining techniques
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On-site processing and stockpiling
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Support the development of the local economy to support the mine operations
Infrastructure:
The project infrastructure is to be developed in a separate vehicle. The infrastructure includes:
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Rail transportation on a heavy haul, standard gauge rail
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Land based stockyards and materials handling at the port
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Marine based berthing and ship-loading
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Product exported from the deep sea port capable of loading 240,000DWT bulk carriers.
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Fuel handling capability at the port
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Power facility
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Support the development of the local economy to support the infrastructure
It is an important and critical focus of Bellzone’s to ensure that the national, regional and local expectations that will be created by the project are investigated, understood and where practically possible met. Bellzone will, with the co-operation and support of the relevant national, regional and local authorities, develop and implement socio-economic and environmental management plans that will bring benefit to the people of Guinea throughout the life of the project and the subsequent operations.
Bellzone
has adopted fundamental principles that form the foundation of Bellzone’s
socio-economic and environmental plans. Priority issues that Bellzone intend to
focus on as part of the socio-economic development are;
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Multi-User rail System
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Access Infrastructure Development
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Training and Resource Development
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Local Business Development
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Support of Current National Socio-Economic Programmes
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Land Tenure and Affected Communities Management
Bellzone has developed a three-phased approach to developing the Kalia Iron Project.
Phase 1
Phase 1, was conducted between November 2005 and November 2007, covered the preliminary stages of ore body assessment, and included the establishment of a fully operational 30 man camp, completed a ground magnetic survey, a geological mapping and surface assay programme. The conclusion of the programme was that the iron mineralisation had economic potential.
These results were incorporated into a Concept Definition Study, which identified and outlined a potential solution and delivery model for the development of the iron mineralisation into a commercially viable operation.
Phase 2
The completion of Phase 1 allowed Bellzone to proceed into Phase 2 of the development strategy. Phase 2 commenced in November 2007. By April 2008, Bellzone had procured seven drill rigs and additional support vehicles and equipment. In addition to the start of the exploration drilling programme Bellzone appointed an Australian engineering company to provide project development and definition services. The solution developed in the Concept Definition Study was updated to an in-house pre-feasibility study.
Work completed to date includes;
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Developed a practical infrastructure solution and an appropriate implementation plan
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Definition of the maiden JORC resource.
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Completion of the 50 person exploration camp and support services.
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Establishing an implementation plan.
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Technical data collection and interpretation.
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Baseline environmental impact assessment.
Work to be completed;
Develop a:
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Measured JORC magnetite resource
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Inferred DSO JORC resource
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Metallurgical characterization test-work
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Socio-economic studies
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Environmental studies
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Feasibility study finalising the mine, process, rail, port and power solutions
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Identification and securing of critical long lead items
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Government Approvals and Licensing
Phase 2 started in November 2007 and is expected to be completed in Q1 2011.
Phase 3
Phase 3 of the project has been scheduled starting in Q1 of 2011 and progressing through construction and production ramp-up of Stages 1 and 2, finishing with full operational handover of a 50 mtpa facility in Q1 2018.
During this phase, the detailed design, procurement, construction and commissioning activities will occur. In parallel with these, operational readiness planning and training will be undertaken, as well as the implementation of the socio-economic and environmental plans.
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