* Snowden Mining Industry Consultants resource confirm total
resource of 230Mt at 41% Fe
* 157Mt at 41% Fe Indicated Resources
* 73Mt at 40% Fe Inferred Resources
* Resource reported according to JORC code based on a cut-off of
30%
* Bankable Feasibility Study due to be completed by end of December
2009
* Exploration target of 80 to 120Mt to be confirmed in Q1 2010
London Mining today announces that Snowden Mining Industry
Consultants ("Snowden") has confirmed a total resource for the Wadi
Sawawin project of of 230Mt at 41% Fe comprising 157Mt at 41% Fe
Indicated Resources and 73Mt at 40% Fe Inferred Resources. All
resources are reported according to the JORC Code 2004 and based on a
cut-off of 30%. London Mining has also identified an exploration
target of between 80 to 120Mt ranging in grade from 38% to 42% Fe,
which it is hoped will extend mine life beyond 20 years, at an annual
production rate of approximately 12Mtpa of feed to the process plant.
Wadi Sawawin is located 60km from the Red Sea port of Duba in Saudi
Arabia and is held through Saudi London Iron Limited, the Saudi joint
venture company held 50:50 by London Mining and National Mining
Company. Metallurgical testwork undertaken by British Steel over a 20
year period has identified a process route that has been confirmed by
Ausenco, Worley Parsons and Corus Consulting. The process involves
fine grinding followed by selective flocculation and calcium
activated reverse anionic flotation, to produce a high grade
concentrate suitable for pelletising as a direct reduction furnace
feed.
In addition, 8000m of drilling is planned before the end of 2010 to
increase confidence in the existing resources and to bring the
identified exploration target into the project's resource base.
Michael Andrew, Divisional Manager Applied Geosciences of Snowden
Mining Industry Consultants BSc, 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.
Graeme Hossie, CEO of London Mining plc, said, "Reporting to JORC
standards of the iron ore resources in the initial proposed mining
area is a further step towards confirming the significant economic
potential of Wadi Sawawin which is ideally located to take advantage
of the forecast demand for pellets in the Middle East and North
Africa ("MENA") region as well as the seaborne markets. One of the
leading industry consultants, CRU Strategies, has estimated that this
demand in the MENA region will reach 43Mt in 2013 and 62Mt in 2019.
Saudi London Iron will be ideally located to supply this market with
an initial target production of 5Mtpa of DR pellets which may be
increased as additional resources are proved. We look forward to
reporting further resource upside on the project as well as the
results of the Bankable Feasibility Study for the first phase of the
project."
Please see the full announcement, including tables with details of
the Wadi Sawawin resource enclosed.
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/ Graham Herring +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).
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.