MAYOKO MOUSSONDJI IRON PROJECT
Equatorial’s 100% owned Mayoko-Moussondji Iron Project (“Mayoko-Moussondji”) has the exceptional advantages of having the potential to produce premium iron products and access to existing transport infrastructure. These advantages create the opportunity for production to commence at Mayoko-Moussondji at a fraction of the capital cost of almost all other African based iron ore developers and producers. Mayoko-Moussondji is located in the southwest region of the ROC. In March 2014 the ROC government awarded Equatorial a Mining Licence for Mayoko-Moussondji, giving the Company the exclusive right to mine within a 615.5 km² area that contains all defined Mineral Resources. The Mining Licence is valid for an initial period of 25 years and is renewable, upon application by Equatorial, for further periods of 15 years. Equatorial is now working with the ROC Government to quickly conclude the associated Mining Convention Agreement and definitive rail and port access agreements for Mayoko-Moussondji.
Mayoko-Moussondji Project location plan
The Project currently hosts a Hematite Resource of 182 million tonnes at 35.7% Fe as part of a total JORC mineral resource estimate (hematite and magnetite) of 917 million tonnes at 31.4% Fe. Equatorial’s metallurgical test work has demonstrated the hematite mineralisation is readily upgradable to a premium 64.1% Fe iron fines product with low impurities.
Details of Equatorial’s target product specifications for iron products from Mayoko-Moussondji are presented below:
Details of Equatorial’s target product specifications for iron products from Mayoko-Moussondji are presented below:
Mayoko-Moussondji Project Total Magnetic Analytical Signal showing resource area with drill collars
The project has access to an existing bulk haulage railway line that runs directly to the deep-water port of Pointe-Noire. Equatorial plans to commence initial operations at Mayoko-Moussondji using the existing railway line and port facilities that service the project. Initial production is targeted to increase in stages and the Company will seek to collaborate with other bulk commodity producers in the development of future large scale rail and port solutions.
CFCO Railway Line
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Port of Pointe-Noire
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SCOPING STUDY
In July 2013 Equatorial announced that it had completed a Scoping Study for Mayoko-Moussondji that investigated a staged ramp up of operations, recognising the ability to commence operations using the existing rail and port infrastructure that service the project, and will allow for incremental investment to increase capacity over time.
The Scoping Study delivered excellent results demonstrating low capital intensity and an initial mine life of 23 years for the production of 2 Mtpa of “Mayoko Premium Fines”, a 64.1% Fe product, with operating costs expected to average $41 per tonne FOB and total capital expenditure of $231m (ASX Announcement 16 July 2013).
Key outputs from the Scoping Study for Stage 1 and Stage 2 include:
In July 2013 Equatorial announced that it had completed a Scoping Study for Mayoko-Moussondji that investigated a staged ramp up of operations, recognising the ability to commence operations using the existing rail and port infrastructure that service the project, and will allow for incremental investment to increase capacity over time.
The Scoping Study delivered excellent results demonstrating low capital intensity and an initial mine life of 23 years for the production of 2 Mtpa of “Mayoko Premium Fines”, a 64.1% Fe product, with operating costs expected to average $41 per tonne FOB and total capital expenditure of $231m (ASX Announcement 16 July 2013).
Key outputs from the Scoping Study for Stage 1 and Stage 2 include:
The Company advises the Scoping Study results and Production Targets reflected in this announcement are preliminary in nature as conclusions are drawn partly from Indicated Resources (being 25% of the total hematite resource that the Scoping Study results and Production Targets were based on) and Inferred Resources (being 75% of the total hematite resource that the Scoping Study results and Production Targets were based on). The Scoping Study referred to in this announcement is based on lower-level technical and economic assessments, and are insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised. There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realised. The Company has concluded it has a reasonable basis for providing the forward looking statements included in this announcement in relation to the Scoping Study results and Production Targets. The detailed reasons for that conclusion are outlined in this announcement and were outlined in detail in the section headed “Forward Looking and Cautionary Statements” of the Company’s ASX announcement of 16 July 2013.