Sable Mining has the completed a positive preliminary feasibility study (PFS) conducted on its Nimba iron ore project in South-East Guinée. In conjunction with the development of the PFS, an initial maiden JORC Reserve of 53.96Mt at a grade of 61.6% iron has been calculated from the August 2013 JORC Resource of 135.5Mt @ 59.4% Fe. This resource has now been updated in November 2013 to 178.4Mt and the reserving process is expected to increase proportionately.
Sable Mining CEO Andrew Groves said, “This is a highly positive PFS which provides a tangible insight into the value of Nimba. The Project has demonstrated itself to be a commercially attractive high DSO grade iron ore development project, and to this end, our objective remains to accelerate its advancement into production within the next 24 months. The PFS underscores the main value drivers that we have been focussing on; high grade ore and low capital cost. It is important to note the comparatively low capex of $299.3 million to bring Nimba into production, which includes a $39.7 million contingency, a key differentiator which sets this project apart from many other iron ore development projects.
“The maiden JORC Reserve underpinning the PFS represents only a fraction of the Company’s current JORC Resource of 178.4Mt, which in turn only covers an area of Plateaux 2 and 3. With this in mind, the parameters of the PFS have significant potential to be enhanced, as additional tonnage is proved up and converted to a Reserve category, in addition to further exploration potential from the as yet undrilled Plateau 1.
“Our sights are firmly set on achieving the additional operational and corporate milestones to bring Nimba into production. We are expecting a further Resource upgrade in the near future, the development and publishing of a Definitive/Bankable Feasibility Study in H2 2014 and securing the additional key elements of our intended logistics chain in the coming months.”