RNS Number : 8102D
London Mining Plc
08 December 2009
London Mining Plc (LOND.NO)
("London Mining" or the "Company")
Resource Update for Isua Iron Ore Project, Greenland
Highlights
· 574Mt at 37% Fe resource reported in accordance with JORC standards
o 114Mt at 37% Fe Indicated Resources
o 460 Mt at 37% Fe Inferred Resources
· Metallurgical work underway to confirm nature and quality of high grade Fe concentrate
· Pre-feasibility study due to be completed by end of February 2010
London Mining, the UK based developer of mines to supply the global steel industry, today announces that Snowden Mining Industry Consultants ("Snowden") has confirmed a total resource for its Isua project of 574Mt at 37% Fe, including 114Mt at 37% Fe of Indicated Resources. All resources are reported in accordance with the JORC Code 2004, based on a cut-off of 20% Fe. Isua is located 150km Northeast of Nuuk and is 100% owned by London Mining Plc through London Mining Greenland A/S. Isua is one of London Mining's four principal iron ore projects together with: Marampa, Sierra Leone; Wadi Sawawin, Saudi Arabia; and the CGMR joint venture in China.
The resource as reported has been constrained by a pit shell that is considered to represent the ultimate extent of any surface operation at Isua, based on the current understanding of the Isua resource. Initial metallurgical testwork undertaken by SGA in 2006 has shown that a concentrate of 71% Fe with less than 1.5% Si02 plus Al203 can be produced from Isua ore and work is currently ongoing to confirm that high grade Fe concentrate can be produced consistently from the Isua resource. London Mining also plans additional infill and extensional drilling at Isua in 2010.
Snowden has reported the Isua resource to reflect the addition of new data by London Mining which has allowed other elements besides Fe to be estimated, as the historic data on which previous estimates were based did not have a full suite of geochemical analyses. As the recent London Mining drilling was undertaken over the northern half of the Isua resource Snowden has reported the north and south of the resource separately to reflect this (Table 2).
Michael Andrew, Divisional Manager Applied Geosciences of Snowden Mining Industry Consultants, B Sc, MAUSIMM, who meets the criteria of a qualified person under the AIM Rules - Guidance for Mining, Oil and Gas Companies, has reviewed and approved the technical information contained within this announcement.
Table 1 Isua resource as at December 2009, reported at a 20 % Fe cut-off
|
Asset
|
Measured
|
Indicated
|
Inferred
|
Operator
|
|
Tonnes (Mt)
|
Fe
%
|
Tonnes (Mt)
|
Fe
%
|
Tonnes (Mt)
|
Fe
%
|
|
|
|
|
|
|
|
|
|
|
Isua, Greenland
|
-
|
-
|
114
|
37
|
460
|
37
|
London Mining Greenland A/S
|
Table 2 Isua resource as at December 2009, reported at a 20 % Fe cut-off with other elements
|
Cut-off
|
Deposit
|
Category
|
Tonnes
|
Fe
|
Al2O3
|
SiO2
|
S
|
P
|
|
Fe %
|
(Mt)
|
%
|
%
|
%
|
%
|
%
|
|
20
|
NORTH
|
Indicated
|
114
|
37.08
|
0.37
|
41.13
|
0.16
|
0.03
|
|
20
|
NORTH
|
Inferred
|
293
|
37.39
|
0.58
|
39.99
|
0.15
|
0.03
|
|
20
|
SOUTH
|
Inferred
|
166
|
36.20
|
|
|
|
|
|
20
|
Total
|
Total
|
574
|
36.98
|
|
|
|
|
Graeme Hossie, CEO of London Mining plc, said, "The delineation of additional resources at Isua is a further step towards defining the economic parameters of the project. Isua is ideally equipped to take advantage of the seaborne iron ore market by virtue of its size, grade, and proximity to a section of the Greenland coast that permits year round shipping. Isua stands out because of its potential to supply a product suitable for the direct reduction iron market. We look forward to reporting on the results of the pre-feasibility study for Isua early in 2010"
|
For more information, please contact:
|
|
|
London Mining Plc
|
|
|
Graeme Hossie, Chief Executive Officer
|
+44 20 7201 5000
|
|
Rachel Rhodes, Finance Director
Thomas Credland, Head of Investor Relations
|
|
|
|
|
|
Liberum Capital (Nominated Advisor/Broker)
|
|
|
Clayton Bush/Ellen Francis
|
+44 20 3100 2000
|
|
GMP Securities Europe (Broker)
|
|
|
Jeremy Wrathall
|
+44 20 7647 2800
|
|
Crux Kommunikasjon AS
|
|
|
Charlotte Knudsen
|
+47 97 56 19 59
|
|
|
|
|
Threadneedle Communication (UK)
|
|
|
Laurence Read/ Beth Harris
|
+44 20 7653 9850
|
The Company's website can be found at www.londonmining.co.uk.
About London Mining
London Mining is focused on identifying, developing and operating scaleable mines to become a mid-tier supplier to the global steel industry. Its four principal assets in Sierra Leone, Saudi Arabia, Greenland and China all have deliverable production with potential for expansion. The Company listed on the Oslo Axess on 9 October 2007 and on AIM in London on 6 November 2009. It trades under the symbols LOND.L and LOND.NO (Reuters) and LOND LN and LOND NO (Bloomberg).
Notes to Editors
Glossary of Technical Terms:
|
"Pre-feasibility Study"
|
a comprehensive study of the viability of a mineral project that has advanced to a stage where the mining method, in the case of underground mining, or the pit configuration, in the case of an open pit, has been established, and where an effective method of mineral processing has been determined. This study must include a financial analysis based on reasonable assumptions of technical, engineering, operating and economic factors and evaluation of other relevant factors which are sufficient for a qualified person acting reasonably, to determine if all or part of the mineral resource may be classified as a mineral reserve.
|
|
"Fe"
|
Iron
|
|
"inferred mineral resource"
|
The part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
|
|
"indicated mineral resource"
|
the part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations, such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assu
med.
|
|
"JORC"
|
Australasian Institute of Mining and Metallurgy Joint Ore Reserves Committee (JORC) code on mineral resources and ore reserves.
|
|
"measured mineral resource"
|
The part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.
|
|
"mineral resource"
|
A concentration or occurrence of natural, solid, inorganic or fossilised organic material in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge.
|
|
"Mt"
|
Million metric tonnes.
|
|
"Mtpa"
|
A million metric tonnes per annum.
|
|
"ore"
|
A natural aggregate of one or more minerals which, at a specified time and place, may be mined and sold at a profit, or from which some part may be profitably separated.
|
|
"pellet"
|
A small spherical marble-sized ball of iron ore used in steelmaking.
|
|
"run-of-mine (ROM)"
|
The raw mined material as it is delivered by the mine cars, skips, or conveyors and prior to treatment of any sort.
|
| "SGA"- |
Studiengesellschaft für Eisenerzaufbereitung (SGA) is a research centre for iron ore beneficiation, pelletizing, sintering and rnetallurgical testing of iron ore feedstock for blast furnace, direct reduction and steelmaking. |
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