Ferrex signs drill contract with Geoserve

AIM-listed iron ore and manganese development company, Ferrex, has reported that a drill contract has been signed with Geoserve with two in-country rigs to be mobilised to test a 1.8km zone of iron ore mineralisation at Ferrex's Mebaga DSO Iron Ore Project in northern Gabon.

AIM-listed iron ore and manganese development company, Ferrex, has reported that a drill contract has been signed with Geoserve with two in-country rigs to be mobilised to test a 1.8km zone of iron ore mineralisation at Ferrex's Mebaga DSO Iron Ore Project in northern Gabon.

Ferrex said that it is targeting a maiden JORC resource in the second half of 2013, with the initial drilling campaign expected to take two to three months.

Regional magnetic data had been acquired, with processing and interpretation complete, the company said. Ferrex added that there was "significant project upside potential", saying that magnetic images emphasised that the Mebaga trend incorporated the "most extensive outcropping of banded iron formation horizon in northern Gabon outside of the Belinga trend".

Dave Reeves, Managing Director of Ferrex, said: "The processing of regional magnetic data is another milestone. Our technical team is confident that there are additional areas of high grade iron mineralisation to be found in the Mebaga trend."

He added: "In addition magnetic images emphasise that we hold 80% of the Mebaga trend, which looks to be the most extensive in northern Gabon outside of the Belinga trend. With these developments in mind I look forward to reporting on further positive results as the exploration programme at Mebaga progresses on a number of fronts."

Ferrex has an 82% interest in the DSO Mebaga iron ore deposit in Gabon, West Africa through its holding in Gabonese holding company Ressources Equatoriales SARL.

The project, which has an exploration target of 20Mt (million tonnes) at 60% iron, is located in an extensive high grade iron ore province which extends from Gabon into the Republic of Congo and Cameroon.

Ferrex's share price was up 0.73% to 1.38p at 11:19 on Monday.

MF

Recommended

Persimmon yields 12.3%, but can you trust the company to deliver?
Share tips

Persimmon yields 12.3%, but can you trust the company to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
1 Jul 2022
Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022
Share tips of the week – 1 July
Share tips

Share tips of the week – 1 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
1 Jul 2022
Bunzl: boring is good for business
Share tips

Bunzl: boring is good for business

Food-service distribution company Bunzl is not a terribly exciting business, but it looks cheap and could be a great investment, says Rupert Hargreave…
30 Jun 2022

Most Popular

UK house prices are definitely cooling off – but are they heading for a fall?
House prices

UK house prices are definitely cooling off – but are they heading for a fall?

UK house prices hit a fresh high in June, but as interest rates start to rise, the market is cooling John Stepek assesses just how much of an effect h…
30 Jun 2022
How to invest in copper, the most important metal in the world
Industrial metals

How to invest in copper, the most important metal in the world

As the world looks to electrify and try to move away from fossil fuels, copper looks set to be the biggest beneficiary. But how can you invest? Rupert…
30 Jun 2022
Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022