43
08.13
iron ore
A
SX-listed Equatorial Resources, based in
Perth, WesternAustralia, reports that the com-
pleted Scoping Study for its 100 %-owned
Mayoko-Moussondji iron project in the south-west
of the Republic of Congo (ROC) has delivered excel-
lent results.
“The Scoping Study has identified an immedi-
ate pathway to a 2 Mt/a haematite mining operation
producing a premium product transported by the
existing railway and port facilities,” comments Equa-
torial’s MD and CEO, John Welborn. “The study dem-
onstrates that our project has a number of advantages:
the potential for a high quality product, low capital
requirements, competitive operational costs, and a
short timeframe to production based on access to ex-
isting rail and port infrastructure. These advantages,
and the potential for future expansion, make Mayoko-
Moussondji a stand-out development opportunity.”
The Scoping Study was completed by Equato-
rial’s project management team under the direction
of Rainer Dreier of Camco Dreico Industrial Services
(CDIS). It was based on the initial Mineral Resource
Estimate (MRE) for Mayoko-Moussondji which in-
cluded an indicated and inferred haematite resource
of 102 Mt at 40,6 % Fe as part of an initial indicated
and inferred resource (magnetite and haematite) of
767 Mt at 31,9 % Fe.
The study investigated Equatorial’s three-stage de-
velopment plan for Mayoko-Moussondji incorporat-
ing both the haematite and magnetite components
of the maiden resource. Equatorial engaged Worley
Parsons Services to complete an independent review,
Positive
study on iron ore project
optimisation and gap analysis of the first two devel-
opment stages which envisage the development of a
2 Mt/a operation based on the initial indicated and
inferred haematite resource.
Equatorial plans to produce a ‘Mayoko Premium
Fines’ iron product grading 64,1 % Fe from the proj-
ect, commencing at 500 kt/a during Stage 1 and ramp-
ing up within 18 months to 2 Mt/a during Stage 2.
Based on the initial haematite resource, the operating
life of mine is estimated at 23 years. The average strip
ratio is estimated at 0,36: 1 (waste to ore) over the Life
of Mine. The first six years of mining are based on
indicated mineral resources (representing 25 % of the
total mineral resource inventory), with the remainder
being inferred material. Operating cash costs are ex-
pected to average US$41 per tonne FOB Pointe-Noire
over the life of the mine.
The initial capital expenditure required for first
production has been estimated at US$114 million.
The total capital cost required to achieve 2 Mt/a is
estimated at US$231 million. This could be reduced
through leasing arrangements on rolling stock, im-
provements in tailings management and through
partnership opportunities with neighboring company
Exxaro Resources Limited.
The completed scoping study will form the basis
of Equatorial’s application for a mining licence and
will also be used as a basis for continuing discussions
with potential strategic partners in order to fast-track
the development of the project. The timeline to initial
production from the final investment decision is esti-
mated at 15 months.
