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Mebaga DSO Iron Ore Project Update
Mebaga DSO Iron Ore Project Update.
About this update from Keras Resources Plc
[{"type":"text","content":"\n \nRNS Number : 7609N Ferrex PLC 30 July 2014 \n \n\nFerrex plc / Index: AIM / Epic: FRX / Sector: Mining\n30 July 2014\nFerrex plc ('Ferrex' or 'the Company')\nMebaga DSO Iron Ore Project Update\n \nFerrex plc, the AIM quoted iron ore and manganese development company in Africa, provides an update regarding the proposed funding transaction for the Mebaga direct shipping ore ('DSO') Iron Ore Project ('Mebaga' or the 'Project') in Gabon. \n \nOn the 19th December 2013 the Company announced a proposed funding transaction for Mebaga with Anglo American plc ('Anglo American') and Kumba Iron Ore (Pty) Ltd ('Kumba') (together 'the Parties'), conditional on a successful due diligence and approval by the Boards of both Ferrex and the Parties. Subsequent to that announcement, the Parties have concluded a successful legal and technical due diligence and approval for the proposed transaction by both the Gabonese Ministry of Mines and Ministry of Commerce has been granted. The Parties' corporate approval process was then initiated. Notwithstanding the successful due diligence process, Ferrex has now been notified that the Parties have resolved not to pursue the proposed funding transaction. \n \nThe Board is confident that the Mebaga project is a strategically important asset due to its position as the closest DSO project to the port of Libreville in the Belinga Province. The DSO potential has been authenticated by the 2013 drilling campaign where all 9 diamond holes intersected DSO grade mineralisation, with the best intercept of 28.7m at 61.4% Fe from surface in NGDH008. This grade equates to a 66% calcined Fe with less than 4.5% combined Si and Al which independent marketers have confirmed will trade at a premium to the 62% benchmark price. Mebaga has a current Exploration Target of 90Mt to 150Mt at 35% to 65% Fe and 550Mt to 900Mt at 25% to 40% Fe defined over an 12km strike length, which equates to only 63% of the 19km strike identified to date where mineralisation is open both along strike and at depth. Importantly geological mapping of the area successfully identified high grade iron ore mineralisation in the eastern half of the licence, 3km east of the BRGM historical BRGM pit (P72) and 7km east of the area drilled by Ferrex in 2013. Rock chips were taken and submitted...