Clarification Statement - Agbaja Project
Perth, Nov 6, 2013 AEST (ABN Newswire) - Australian based iron ore development company, Kogi Iron Limited (
ASX:KFE) ("Kogi Iron" or the "Company") refers to the announcement to the Australian Securities Exchange dated 14 October 2013 headed "Kogi Reports Barging Study Completed" ("14 October Announcement"), and to the Quarterly Report for the three months ended September 2013 ("September Quarterly Report"), lodged with the Australian Securities Exchange on 31 October 2013.
The 14 October Announcement included the statements "the 5Mtpa Scoping Study", "a 5Mtpa iron ore operation" and "a 5Mtpa operation". The September Quarterly Report included the statement ""a final upgraded iron ore concentrate of 55-56% Fe is expected to be produced".
The Company is concerned that investors may attribute the above statements as establishing the economic viability of the Company's Agbaja Project, located in Kogi State, Republic of Nigeria, West Africa, which is currently the subject of a Scoping Study.
The Scoping Study will be based on the Company's existing and previously announced Inferred Mineral Resource estimates and investors are advised that under the JORC Code, these Inferred Mineral Resource estimates are not sufficient to permit the application of the type of technical and economic parameters required to imply economic viability. Investors should note that for the Company to establish economic viability of its Agbaja Project, the Company will need to establish sufficient Indicated Mineral Resources and further consider mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and government factors. As a result, some of the assumptions that may be used in the Scoping Study may never be realised.
Statements implying economic viability require a reasonable basis, otherwise they are taken to be misleading to shareholders. Given that the Company is concerned that investors may attribute the above statements as proving the Agbaja Project's economic viability, it retracts those statements of economic viability and production and cautions investors against using those statements as a basis for investment decisions relating to securities in the Company.
The Company intends to use the results of the Scoping Study to further progress evaluation and development of the Agbaja Project. This is expected to include a drilling program to better define the Inferred Mineral Resource, along with additional evaluation work, to determine whether the Company is able to establish an Indicated Mineral Resource.
About Macro Metals Limited
Macro Metals Limited is an ASX-listed company (ASX:M4M) with the intent to build a cast steel plant on the Agbaja Plateau in Kogi State, Nigeria. The project will utilise company leased iron ore deposits and will supply a cast steel feedstock to steel manufacturing and product fabricators in Nigeria and overseas.
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