Strengths of The Zanaga Project
World class deposit
- One of the largest discovered iron ore resources in Africa with a 6.8Bt resource, including the largest known iron ore reserve on the continent
- Around 50% of the orebody’s magnetic footprint has been drilled to date, which implies there is further exploration potential along strike.
- Capable of supporting, a large long life production profile of 30Mtpa supplying premium product to the market over a mine life of 30 years and potential to further extend this
Staged development enhances deliverability of the Project
- Substantially reduces initial capital requirements
- Increases financeability of the Project
- Maintains low forecast operating costs
- Expansion potential to 30Mtpa in the future
Reduced technical risk and enhanced economics through staged development approach:
- Processing capability matched with sequential mining of the orebody layers provides technical efficiencies and reduced execution risk
- Mining of higher grade ores in the initial years enables a higher production rate of 13.2Mtpa for first five years of operation while maintaining bottom quartile operating costs
- Initial power requirements supplied by existing grid generation capacity, with the Stage Two development implemented in parallel with the timing of potential power generation projects
- Capital cost profile enables potential self-financing of Stage Two through existing project cash flows from Stage One
Competitive material movements
- The project benefits from a very low waste to ore strip ratio
- In the initial years of production, the strip ratio is well below industry average requiring minimal blasting
Bottom quartile operating costs and benchmark capital costs
- Competitive FOB operating cost estimates over the two stage mine life of circa $24-31 per dry metric tonne excluding consideration of expected product premium received
- Capital costs in line with greenfield iron ore benchmarks.
High grade pellet feed product
- The Stage One pellet feed product will have an iron grade of 66%, similar to Brazilian supply.
- Impurities are expected to be low, including silica (3.0%), alumina (0.8%) and phosphorus (0.04%).
- Product expected to command a price premium relative to the 62% Fe IODEX, both as a function of Fe content and low impurities.
- Product expected to be attractive feed for pellet plants or as part of a sinter feed blend.
Mine life/operating scale upside:
- Production is underpinned by 6.9Bt of Mineral Resource and 2.5Bt of Probable Ore Reserves
- Mine life or operational scale is capable of extension beyond scheduled mine plans
- Stage One will mine approximately 1Bt of ore, and the expansion to 30Mtpa will increase mined resource to 2Bt over the proposed 30 year mine life.
- Stable operating jurisdiction with an established resources industry
- The Republic of Congo Government is actively seeking to encourage mining-related investment
- Mining Licence received
- Mining Convention signed
- Land acquisition for mine, pipeline and other infrastructure is a straightforward process as the land is owned by the Government, removing the need for complex negotiations with multiple private land owners, as in other countries