Perth, Feb 3, 2006 AEST (ABN Newswire) - Sphere Investments Ltd (ASX: SPH) - whose bankable feasibility study into the Guelb el Aouj iron ore project in Mauritania is well advanced - is to assess the exploration potential of the nearby Bou Derga and Tintekrate magnetite deposits.
The Australian based company has already developed the Guelb el Aouj deposits to an Inferred Resource of 675 million tonnes (Mt) (36.4% Fe head grade) including 450 Mt (36.6% Fe) for the East Deposit and 225 Mt (36.0%) for its Centre Deposit.
The decision to evaluate the two additional deposits was announced by the Company today following positive results from recent mapping and modelling by Sphere's geologists.
"Based on similar procedures to those used for the initial assessments of Centre and East, we believe that Bou Derga provides a magnetite-quartzite target in the order of 450-600 million tonnes (Mt)," Sphere's Managing Director, Mr Alex Burns, said today.
"The 450-600 Mt target is based on recent geological modelling and mapping using SNIM's historical data. The target in-situ mineralisation grade is in the range 33-37% Fe, with the potential to yield a +70%Fe concentrate based on SNIM's data," he said.
"The 65 hectare surface exposure of Bou Derga compares favourably with East's 56 hectares and the fresh material from Bou Derga appears to show similarities with the material from Guelb el Aouj, according to the recent assessment by our geologists.
"An assessment of the potential of the Tintekrate Deposit is also underway, he said.
The two deposits are located less than 20 kilometres south of Guelb el Aouj and are situated within the established joint venture area, itself embedded within a major iron ore province. All deposits in the JV area are located within 30km of SNIM's iron ore rail network that feeds its 160,000DWT iron ore port at Nouadhibou.
"In light of continuing record levels of global demand for iron ore, and strong interest from steels mills in sourcing Direct Reduction (DR) pellets from Mauritania, we have now decided to carry out an assessment of the potential of these two other deposits," Mr Burns said.
"While our primary focus remains to bring the 450 Mt Guelb el Aouj East deposit into production as soon as possible, there is an emerging and more detailed picture now of the potential to develop additional projects within the JV area," he said.
"It is our expectation that Sphere's scope will broaden as market demand for iron ore continues to grow and as the other deposits within the JV area are assessed."
Last month, Sphere gave the go-ahead for Stage 2B of the US$22 million bankable feasibility study (BFS) on the estimated US$850 million Guelb el Aouj project, based on the outstanding drilling and other test results from Stage 1 and Stage 2A work.
Stage 2B includes a 25,000m RC drilling program to upgrade East Deposit's 450 Mt Inferred Resource to Indicated and Measured Resources and a 2,000m diamond drilling program to establish mine engineering and design for East's initial open pit.
Sphere - which is earning a 50% interest in its JV with SNIM - expects the final Stage 3 of the Guelb el Aouj BFS to be completed by the second quarter of next year.
Contact
Alexander Burns
Managing Director
Sphere Investments Limited
TEL: +61 8 9322 5222 / 0418 953 829
Kevin Skinner
Field Public Relations
TEL: +61 8 8234 9555 / 0414 822 631
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