Increase in JORC compliant Mineral Resource

RNS Number : 4430Y

Ironveld PLC

22 February 2013

 



Ironveld plc ("Ironveld" or the "Company")

Increase in JORC compliant Mineral Resource

Highlights

·     Maiden JORC resource announced for the Farm Altona

·     Total project mineral resource increased by 40% to 59.1 million tons at an average grade of 36.4% Fe, equating to 21.5 million tons of Fe Metal in-situ at a cut-off grade of 20%

Ironveld is pleased to announce that the results of exploration drilling on the Company's Altona farm yielded results similar to that of the Nonnewerth and La Pucella farms leading to a further increase in both the size and grade of the Company's JORC Mineral Resource. In addition, 6.18 million tons, of in-situ iron metal at a cut-off grade of 20% are now classified in the Indicated Mineral Resource Category.

Drilling Results

The Mineral Resource Estimate was carried out for the Main Magnetite Layer ("MML"), which commonly consists of semi-massive to massive layers of vanadium-bearing titaniferous magnetite ("VTM").  The MML occurs near the base of the Upper Zone of the Bushveld Complex and, on the Altona farm, is in the form of a single massive VTM-rich layer with an average true thickness of 3.7 metre.  The MML is underlain by gabbronorite with variable amounts of disseminated VTM.

The MML was intersected on the Altona farm in 16 vertical boreholes on seven drill fences which were spaced along strike at approximately 500 metre intervals. Two mineralised zones were modelled separately, firstly the massive MML, and secondly the MML with disseminated footwall ("FW").

The drilling on Altona has increased the overall Mineral Resource base for the Ironveld project. The Mineral Resources are classified as Inferred as well as Indicated in accordance with the guidelines of the JORC Code as listed in the Tables below. Mineral Resources, as at 15 February, 2013, are declared for Fe grades greater than 20% Fe down to a depth of 120 metres below surface.

Inferred Mineral Resource on Altona, less than 120 m below surface at 20% Fe cut-off, as at 15 Feb 2013

	Million	Density	Fe	Fe2O3	Fe Metal	TiO2	V205	SiO2	P2O5	S
	Tonnes	g/cm3	%	%	Mil Tonnes	%	%	%	%	%
MML	0.49	4.51	49.1	73.3	0.24	15.2	1.02	4.05	0.01	0.03
FW	0.58	3.27	20.8	31.1	0.12	3.3	0.29	35.5	0.02	0.33
MML with FW	1.07	3.84	33.9	50.6	0.36	8.7	0.63	21.0	0.02	0.19

Indicated Mineral Resource on Altona, <120 m at 20% Fe cut-off, as at 15 Feb 2013

	Million	Density	Fe	Fe2O3	Fe Metal	TiO2	V205	SiO2	P2O5	S
	Tonnes	g/cm3	%	%	Mil Tonnes	%	%	%	%	%
MML	10.27	4.51	48.9	73.0	5.02	15.6	1.13	3.85	0.01	0.11
FW	5.43	3.18	21.3	31.7	1.16	3.1	0.31	34.4	0.02	0.17
MML with FW	15.70	4.05	39.4	58.8	6.18	11.3	0.84	14.4	0.01	0.13

The overall project Indicated and Inferred Mineral Resource for the MML and MML with FW are listed in the tables below. Mineral Resources are declared for Fe grades greater than 20% down to depths of 120m below surface.

MML Mineral Resources for the Ironveld Project, less than 120 m below surface at 20% Fe cut-off

Farm	Cut Off	Million	Density	Fe	Fe2O3	Fe Metal	TiO2	V205	SiO2	P2O5	S
	Fe%	Tonnes	g/cm3	%	%	Mil Tonnes	%	%	%	%	%
Indicated Mineral Resources
Altona	20	10.27	4.51	48.9	73.0	5.02	15.6	1.13	3.9	0.01	0.11
Total Indicated	20	10.27	4.51	48.9	73.0	5.02	15.6	1.13	3.9	0.01	0.11
Inferred Mineral Resources
Nonnenwerth	20	21.69	4.03	42.5	60.8	9.22	13.1	1.00	11.1	0.01	0.10
La Pucella	20	6.83	4.30	47.8	68.3	3.30	14.7	1.11	7.0	0.01	0.11
Altona	20	0.49	4.51	49.1	73.3	0.24	15.2	1.02	4.1	0.01	0.03
Total Inferred	20	29.01	4.10	43.9	62.8	12.76	13.5	1.03	10.0	0.01	0.10
Indicated and Inferred Mineral Resources
Project Total	20	39.28	4.21	45.2	65.5	17.78	14.1	1.05	8.4	0.01	0.10

MML with FW Mineral Resources for the Ironveld Project, less than 120 m below surface, at 20% Fe cut-off

Farm	Cut Off	Million	Density	Fe	Fe2O3	Fe Metal	TiO2	V205	SiO2	P2O5	S
	Fe%	Tonnes	g/cm3	%	%	Mil Tonnes	%	%	%	%	%
Indicated Mineral Resources
Altona	20	15.70	4.05	39.4	58.8	6.18	11.3	0.84	14.4	0.01	0.13
Total Indicated	20	15.70	4.05	39.4	58.8	6.18	11.28	0.84	14.41	0.01	0.13
Inferred Mineral Resources
Nonnenwerth	20	32.9	3.68	34.8	49.8	11.46	9.8	0.80	19.6	0.01	0.10
La Pucella	20	9.44	3.81	37.5	53.7	3.50	10	0.79	18.0	0.01	0.13
Altona	20	1.07	3.84	33.9	50.6	0.36	8.7	0.63	21.0	0.02	0.19
Total Inferred	20	43.41	3.71	35.4	50.7	15.32	9.8	0.8	19.3	0.0	0.1
Indicated and Inferred Mineral Resources
Project Total	20	59.10	3.80	36.4	52.8	21.50	10.2	0.81	18.0	0.01	0.11

The previously announced anomalous layer of magnetite with low vanadium and titanium grades, which was intersected on Altona farm, has now been shown to have a strike of approximately 60 m and is unlikely to have any economic impact on the Pig Iron project. This magnetite layer is not part of the Mineral Resource

Peter Cox, CEO of Ironveld, said: "The results from Altona farm show a slightly higher Fe grade than that of the Nonnewerth and La Pucella farms and the Company remains confident of achieving its Mineral resource target from the remaining strike length of the three northern farms.

We have now doubled the size of the Mineral Resource since the Company listed on AIM six months ago. Drilling is continuing on the northern properties and results will be published in due course. In addition, further drilling is taking place on Nonnenwerth farm to upgrade the resource categories. The pre-feasibility study for the Pig Iron project is well in hand and will be completed shortly."

The Mineral Resource has been prepared under the supervision of Jeremy Witley and the Report was reviewed by Dr Frieder Reichhardt, both of The MSA Group.  Jeremy Witley and Frieder Reichhardt have the appropriate relevant qualifications, experience, competence and independence to be considered "Competent Person" under the definitions provided in the JORC code, 2012 Edition.

For further information, please contact:

Ironveld plc Peter Cox, Chief Executive	c/o FTI Consulting  020 7269 7183
Shore Capital and Corporate Limited	020 7408 4090
Stephane Auton /  Toby Gibbs (corporate finance)
Jerry Keen (corporate broking)
F T I Consulting	020 7269 7183
Oliver Winters / Katherine Goligher

 

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