Geology

The mapped iron oxide cap is a product of the Marampa beds. The Marampa beds extend from within Sierra Leone to 8km NNW of Yomboyeli. Of the 8km strike of the prospective Marampa Beds within the JV lease area, the internal resource estimate has been established across approximately 1km of the central Yomboyeli zone, which runs in parallel to two other ridges, namely Yomboyeli West and Yomboyeli East. The current resource development programme will continue to define the remaining 7km of the identified Marampa beds and the parallel ridges at Yomboyeli.

An initial internal resource of;

• 2.0mt of iron oxide cap, grading at +55%Fe, producing a crush and screen product of 58%Fe has been identified as the initial mining zone 
• 5.9mt of iron oxide canga grading at 45.7%Fe, initial gravity testwork indicates grades of 58% Fe are achievable 
• 13.2mt of lower grading oxide, 34%Fe, at surface
• 38 million cubic meters of hematite schist, with calculated densities of 3.3 t/m3, providing 125mt, has been identified at depths of 5m to 100m. Testwork conducted to date indicates the hematite schist can be upgraded to grades of 60%Fe to 64%Fe, with mass recoveries of over 60% 
• Haematite schist is open at depth and will be defined with a deep diamond drilling programme
• Ongoing upgrade testwork and infill drilling will further define the hematite schist and surface oxide canga that will be used in planning production from Q4 2012.

The Yomboyeli exploration development programme continues in the central zone to permit detailed production planning. A 30,000m RC drilling programme at Yomboyeli west has started, with first holes intersecting surface oxide up to 12m thick and zones of hematite schist at depth. Diamond drilling at Moussaya has intersected multiple zones of magnetite. Results from these programmes are expected to add to the already internally identified resources and will be available in Q1 2012.

Potential of the Lease Area

Yomboyeli Central

• Drilled to 100 meters, open at depth 
• Central haematite schist core of 140 meters could be extended to an economic depth of + 200 meters 

Yomboyeli West

• Extensive haematite schist zones discovered, length of zone potentially three times that of Yomboyeli Central 
• Extent of the oxide cap has yet to be determined 
• Magnetic high adjacent to the haematite schist yet to be tested. 

Laya

• Iron bearing zone mapped, yet to be drilled. Forms part of the mapped Marampa bed extensions and could be an extension of the Yomboyeli Central zone. 

Moussaya

• Multiple parallel magnetite bearing zones discovered 
• Haematite carapace extent yet to be tested 

Additional targets

• Seven km of the haematite bearing Marampa beds yet to be explored 
• New targets identified by the magnetic survey yet to be explored 
• Further exploration is likely to uncover additional haematite schist bodies, they cannot be identified using magnetic 
• Extensive Santiguiyah potential yet to be fully tested. Current testwork indicates the potential to achieve a +60%Fe product and ongoing testwork will further define the next phase of the exploration programme
  
  
  

Project

A fast track project, taking advantage of the location of the ore body, has been implemented to achieve production in Q1,2012. This includes;

• Drill and blast mining operations
• Truck haulage to the process plant
• Mobile crushing and screening plants
• Modular washing plants
• Simple load out and storage facilities
• Truck haulage from the mine to the port on a constructed 76km road
• A simple port concept of stockpiles and loading conveyors
• Barge loading facilities
• A static deep water stockpile
• Trans-shipping capacity to load Cape Size vessels

Project progress:

• All mining, processing and haulage equipment purchased and shipped to Guinea
• Port equipment purchased and shipped to Guinea
• Mine camp under construction
• Resource defined
• Mining target identified

Environmental and Socio-economic 

The SEIA and EIA studies for the project have been completed and approved by the Guinea Ministry of Environment. The studies define the agreed process for;

• Land acquisition
• Population relocation
• Local community development plans
• Health and hygiene management
• Environmental risk mitigation
• Rehabilitation
• Sacred site protection
• Management of protected species

Investor Facts

• 50:50 JV with China International Fund Limited
• Fully financed
• Production start in Q1 2012
• 4mtpa ramping to 10mtpa in 2014