Bellzone Mining shares fall following Forecariah JV update

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.

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.

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.

MF

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
6 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

NS&I brings back one-year fixed bonds with highest rates since 2010
Personal finance

NS&I brings back one-year fixed bonds with highest rates since 2010

NS&I’s one-year fixed bonds are back on sale after being pulled off the market in 2019 - but is the rate any good?
1 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
6 Feb 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
6 Feb 2023