Reserves Announcement

RNS Number : 1434C
Ferrexpo PLC
28 August 2008
 




28 August 2008



Ferrexpo announces an additional 464 million tonnes of reserves at GPL


Ferrexpo plc ('Ferrexpo' or the 'Group') is pleased to announce a 95% increase in proved and probable reserves within its Gorishne-Plavninskoye and Lavrikovskoye ('GPL') deposits. The results are based on mine design and optimisation undertaken to pre-feasibility level as part of the project to expand and extend the Group's existing GPL operations.  


Further to the resource announcement of June 3rd 2008, the Group engaged Turgis (Pty) Ltd ('Turgis') to assist it in revising the GPL mine plan. This work is now completed and Turgis have confirmed that the proved and probable reserves associated with the GPL mine have been increased by 95% to 955mt, from 491mt at the time of the Group's Listing.


As previously reported, the resources associated with the GPL mine in the measured, indicated and inferred categories have been increased by 127.4% to 3,704mt, from 1,629mt at the time of the Group's listing. The primary reason for the increase in resources is due to an extension in the depth limit to which resources have been declared in accordance with the JORC code.


Mike Oppenheimer, Ferrexpo's Chief Executive Officer, said:


'We have delivered on the promise we made at our listing to complete the engineering review and optimisation of our GPL mining operations. This has resulted in an almost doubling of proven and probable reserves and the production expansion project already announced. We expect to complete the Feasibility Studies for the upgrade of our GPL beneficiation plants by the end of next month. Together, these initiatives provide a robust underpinning for our operating cashflows and reinforce our confidence in our financial capacity to move ahead with our new mining projects.'


Revised reserve statement 


Gorishne-

1 January 2008

1 January 2007


Plavninskoye

Tonnage (mt)

Grade Fe Total (%)

Tonnage (mt)

Grade Fe Total (%)

Change

Proved

251

27

239

30

5%

Probable

547

30

160

30

242%

Total

798

29

399

30

100%


Lavrikovskoye

1 January 2008

1 January 2007



Tonnage (mt)

Grade Fe Total (%)

Tonnage (mt)

Grade Fe Total (%)

Change

Proved

43

32

38

30

13%

Probable

113

31

53

29

113%

Total

157

32

92

30

71%



Previously announced resource statement 


Gorishne-

1 January 2008

1 January 2007


Plavninskoye

Tonnage (mt)

Grade Fe Total (%)

Tonnage (mt)

Grade Fe Total (%)

Change

Measured

348

29

239

30

46%

Indicated

1,095

31

845

33

30%

Sub-total

1,443

30

1,085

32

33%







Inferred

1,275

31

51

34

2,400%

Total

2,718


1,136


139%


Lavrikovskoye

1 January 2008

1 January 2007



Tonnage (mt)

Grade Fe Total (%)

Tonnage (mt)

Grade Fe Total (%)

Change

Measured

104

31

86

34

21%

Indicated

708

30

394

33

80%

Sub-total

812

30

480

33

69%







Inferred

174

29

13

27

1,238%

Total

986


493


100%




For further information, please contact:


Ferrexpo:           +44 207 389 8304


Gavin Mackay


Finsbury:            +44 207 251 3801


Robin Walker

Alex Simmons


Notes to Editors:


Ferrexpo is a Swiss headquartered resources Group with assets in Ukraine, principally involved in the production and export of iron ore pellets, used in producing steel. Current output is over 9 million tonnes per annum, approximately 85% of which is exported to steelmakers around the world, and the Group is currently undertaking a significant growth programme. The Group is listed on the main market of the London Stock Exchange under the ticker FXPO. For further information please visit www.ferrexpo.com.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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