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Low Opex Potential at Gabon DSO Iron Ore Project
Low Opex Potential at Gabon DSO Iron Ore Project.
About this update from Keras Resources Plc
[{"type":"text","content":"\n \nRNS Number : 9674O Ferrex PLC 13 August 2014 \n \n\n\nClick on, or paste the following link into your web browser to view the associated PDF:\n http://www.rns-pdf.londonstockexchange.com/rns/9674O_-2014-8-12.pdf\n \nFerrex plc / Index: AIM / Epic: FRX / Sector: Mining\n13 August 2014\nFerrex plc ('Ferrex' or 'the Company')\nLow Opex Potential at Gabon DSO Iron Ore Project - Desktop Order of Magnitude Study \n \nFerrex plc, the AIM quoted iron ore and manganese development company focused in Africa, is pleased to announce that a desktop study for operations and associated costs has highlighted that significant potential exists for low operating costs at its 309 sq km Mebaga direct shipping ore ('DSO') iron ore project in northern Gabon ('Mebaga').\n \nOverview\n· Two operational scenarios - 1mtpa (Scenario A) and 3mtpa (Scenario B) of DSO iron ore ('Fe') included as part of desktop order of magnitude study\n· Free On Board ('FOB'), DSO cost of $41/t Fe for Scenario B, and FOB DSO cost of $45/t Fe for Scenario A \n· Cost, Insurance & Freight ('CIF') China, DSO cost of $61/t using current freight rates for Scenario B and $65/t for Scenario A\n· Independent marketing agents have confirmed that the DSO material should command premium over 62% Fe benchmark price currently at $95/t CIF China\n· Significant benefits as the closest DSO project to the Libreville port in the Belinga Super Group areaand route to Libreville Port will utilise a large amount of existing infrastructure\n \nFerrex Managing Director Mr. Dave Reeves said, \"We are very encouraged by the results of this desktop study which, with a FOB cost of between $41/t and $45/t for both operational scenarios, demonstrates the significant potential for low operating costs at Mebaga. Importantly independent marketing agents have confirmed that Mebaga's ore, which has low levels of silica, alumina and phosphorous, should be sold at a premium to the 62% iron benchmark price. When the low capex estimations are coupled with a premium benchmark DSO price and the fact that we will utilise a large amount of existing infrastructure, the potential returns for Mebaga look very exciting...