Quarterly Activities and Cashflow Report
Perth, Jan 31, 2014 AEST (ABN Newswire) - Australian based iron ore development company, Kogi Iron Limited (
ASX:KFE) ("Kogi", "Kogi Iron", or the "Company") and its 100% owned Nigerian operating company, KCM Mining Limited ("KCM") presents the quarterly activity report for the three months ended 31 December 2013. Kogi Iron is focused on becoming an African iron ore producer through the development of its 100% owned Agbaja iron ore project located in Kogi State, Republic of Nigeria ("Agbaja" or "Agbaja Project").
During the quarter the focus for the Company was advancing study work to assess the development of the Agbaja Project, this work commenced as a Scoping Study in September 2013 and was upgraded to a Preliminary Feasibility Study ("PFS") on 13 December 2013. On 29 January 2014 the Company was delighted to announce that the results of the PFS were positive and that the study had determined that the development and operation of a mine and processing plant at Agbaja to produce 5 Mtpa of iron ore concentrate is technically feasible, economically viable and socially and environmentally acceptable.
The Kogi Board has consequently approved for the Company to proceed to a Definitive Feasibility Study ("DFS") as a precursor to a decision to mine at Agbaja. The DFS is expected to be completed by the end of Q4 2014.
"The PFS has been completed two months ahead of schedule which is testament to the hard work put in by the high quality team involved" Iggy Tan, Managing Director.
HIGHLIGHTS
- Preliminary Feasibility Study now completed
- Development of a 5 Mtpa iron ore project is economically robust and technically viable
- Highly attractive with IRR of 23.7% and pre-tax NPV of US$420 million (@ 12% discount)
- Capex estimate US$497 million and capital intensity US$99.4/t
- Average operating cost US$42.98/t concentrate FOB
- Four year capital payback
- Project ranks in the bottom quartile for capital intensity and the bottom half of the operating cost curve for magnetite projects
- Definitive Feasibility Study (DFS) approved
- $0.97 million raised via Share Purchase Plan
- 20% increase in Agbaja Mineral Resource to 586 million tonnes at 41.3% Fe
- Environmental and Social Impact Assessment Study completed, no impediments for mine development
To view the full report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-KFE-665896.pdf
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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