The Zanaga Project has defined a 6.9 billion tonne Mineral Resource and a 2.1 billion tonne Ore Reserve, reported in accordance with the JORC Code (2012), and defined from only 25km of the 47km strike length of the orebody so far identified.
Ore Reserve Statement
The Ore Reserve estimate was prepared by independent consultants, SRK Consulting (UK) Ltd (SRK) and is based on the 30Mtpa Feasibility Study and the 6,900Mt Mineral Resource.
As stipulated by the JORC Code, Proven and Probable Ore Reserves are of sufficient quality to serve as the basis for a decision on the development of the deposit. Based on the studies performed, the mine plan as reported in the 2014 FS was reassessed in respect of the updated sales revenue, operating expenditure and capital expenditures and confirmed as of 31 December 2020 to be technically feasible and economically viable.
| Ore reserve category | Tonnes (Mt) | Fe (%) | SiO2 (%) | Al2O3 (%) | P (%) |
|---|---|---|---|---|---|
| Proved | 774 | 37.3 | 35.1 | 4.7 | 0.04 |
| Probable | 1,296 | 31.8 | 44.7 | 2.3 | 0.05 |
| Total | 2,070 | 33.9 | 41.1 | 3.2 | 0.05 |
Long term price assumptions are based on a CFR IODEX 65%Fe forecast of US$90tdry (USc138/dmt) with adjustments for quality, deleterious elements, moisture and freight.
Discount Rate 10% applied on an ungeared 100% equity basis
Mining dilution ranging between 5% and 6%
Mining losses ranging between 1% and 5%
Mineral Resource
The Mineral Resource was estimated as a block model within constraining wireframes based upon logged geological boundaries. Tonnages and grades have been rounded to reflect appropriate confidence levels and for this reason may not sum to totals stated.
| Classification | Tonnes (Mt) | Fe (%) | SiO2 (%) | Al2O3 (%) | P (%) | Mn (%) | LOI (%) |
|---|---|---|---|---|---|---|---|
| Measured | 2,330 | 33.7 | 43.1 | 3.4 | 0.05 | 0.11 | 1.46 |
| Indicated | 2,460 | 30.4 | 46.8 | 3.2 | 0.05 | 0.11 | 0.75 |
| Inferred | 2,100 | 31 | 46 | 3 | 0.1 | 0.1 | 0.9 |
| Total | 6,900 | 32 | 45 | 3 | 0.05 | 0.11 | 1.05 |
Reported at a 0% Fe cut-off grade within an optimised Whittle shell representing a metal price of 130 USc/dmt. Mineral Resources are inclusive of Reserves.
The figures shown are rounded; they may not sum to the subtotals shown due to the rounding used.
Geological Summary
The Zanaga iron ore deposit is located within a North-South oriented (metamorphic) Precambrian greenstone belt in the eastern part of the Chaillu Massif in South Western Congo. From airborne geophysical survey work, and morphologically, the mineralised trend constitutes a complex elongation in the North-South direction, of about 47 km length and 0.5 to 3 km width.
The ferruginous beds are part of a metamorphosed, volcano-sedimentary Itabirite/banded iron formation (BIF) and are inter-bedded with amphibolites and mafic schists. It exhibits faulted and sheared contacts with the crystalline basement. As a result of prolonged tropical weathering the BIF has developed a distinctive supergene iron enrichment profile.
At surface there is sometimes present a high grade ore (+60% Fe), classified as canga, of apparently limited thickness (<5m) capping a discontinuous, soft, high grade, iron supergene zone of structure-less hematite/goethite of limited thickness (<7m). The base of the high-grade supergene iron zone grades quickly at depth into a relatively thick, leached, well-weathered to moderately weathered friable hematite Itabirite with an average thickness of approximately 25 metres and grading 45-55% Fe.
The base of the friable Itabirite zone appears to correlate with the moderately weathered/weakly weathered BIF boundary, and fresh BIF comprises bands of chert and magnetite/grunerite layers.
Competent Persons
The statement in the report relating to Ore Reserves is based on information compiled by Dr Iestyn Humphreys, FIMM, AIME, PhD who is a Corporate Consultant, and Practice Leader with SRK. He has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the JORC Code (2012).
The information in the report that relates to Mineral Resources is based on information compiled by Malcolm Titley, BSc MAusIMM MAIG, of CSA Global (UK) Ltd. Malcolm Titley takes overall responsibility for the report as Competent Person. He is a Member of the Australasian Institute of Mining and Metallurgy (AUSIMM) and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a Competent Person in terms of the JORC Code. The Competent Person, Mr Malcolm Titley, has reviewed this Mineral Resource statement and given his permission for the publication of this information in the form and context within which it appears.
Definition of JORC Code
The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012) as published by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.