Shares in AIM-listed exploration and resource development company Bellzone Mining fell sharply on Tuesday following the publication of an update on the company's joint venture in West Africa.
The company stated that three types of ore had been classified at its 50:50 Forecariah Joint Venture in the Republic of Guinea. The resources were derived from four distinct areas comprising Yomboyeli central, Yomboyeli West north and south and Layah.
The company said that there was an indicated JORC resource of 3.2m tonnes of direct shipping ore which was given an average in situ grade of 55.8% iron.
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Commenting on the findings, Glenn Baldwinn, Chief Executive Officer of Bellzone Mining, stated that the JORC resources at the Forecariah Joint Venture provided a new level of confidence in the planning for the development of the iron ore region. He added that a shipping schedule would be developed in the first quarter of 2013.
"The JV will now undertake rigorous metallurgical test work and details of the schedules for completion of plant studies are expected to be provided later in the first quarter of 2013. The objectives will be to optimise and finalise the mining and process solutions for the surface oxide and/or hematite schist material," he said.
"In the interim, the JV will focus on producing a quality product from the direct shipping ore component and use the JORC resources to develop a production plan to generate positive cash flows. I reiterate that the JV will use the maiden JORC statement to develop a detailed production and shipping schedule in the first quarter of 2013 and we will release this to the market in due course," he added.
In the company's half-yearly report published on September 28th, Michael Farrow, Chairman of Bellzone Mining had indicated that export of iron ore was forecast for the fourth quarter of 2012. He said on September 28th: "We look forward to the first export of iron ore in Q4 2012".
Bellzone Mining's share price was down 11.56% to 16.25p at 11:32 on Tuesday.
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