Resources round-up: Bellzone, Baobab, Namakwa Diamonds

Bellzone Mining has begun stockpiling the first fines material for wet processing at its Forécariah JV iron ore mine in the Republic of Guinea, West Africa. The firm has also transported the first lump production via haul trucks to the transhipping port at Konta, which will then be transported by barge to a transhipping vessel. The first sold ore is expected to be loaded into a 170,000 tonne vessel for sailing in the third quarter of 2012. The company said off-take negotiations are progressing well.

By MoneyWeek

published 31 May 2012

Bellzone Mining has begun stockpiling the first fines material for wet processing at its Forcariah JV iron ore mine in the Republic of Guinea, West Africa. The firm has also transported the first lump production via haul trucks to the transhipping port at Konta, which will then be transported by barge to a transhipping vessel. The first sold ore is expected to be loaded into a 170,000 tonne vessel for sailing in the third quarter of 2012. The company said off-take negotiations are progressing well.

Iron ore miner Baobab Resources is terminating its joint venture with Ferrex by mutual agreement, with immediate effect. The JV was established in 2010 to explore the manganese and base metal potential of Baobab's Changara project, and since then has identified numerous targets for follow up phases of exploration. Ferrex, which has chosen to focus its resources on its flagship manganese project in Togo, will now pay Baobab $39,521 for the shortfall in expenditure committed at the first stage of the agreement. Baobab retains 100% ownership of the Changara project.

Namakwa Diamonds has reported that its year-to-date production at May 25th on the North Wet province, South Africa, was 16,569 carats from 2,341,770 tonnes processed, with an average grade of 0.71 carats per hundred tons (cpht). Unit costs remain in-line with expectations and average year-to-date sales prices at $764/ carat (ct) (H1'FY2012: 632/ct). Full-year guidance remains unchanged at 20,000 ct. At the Kao mine, Lesotho, year-to-date production was 68,240 carats from 651,810 tonnes processed, with an average grade of 10.47cpht. May tender sales of diamonds from the Kao Mine achieved average prices of $395/ct with the average year-to-date sales price at $276/ct. Full year production targets have been reduced to 150,000 ct as a result of unforeseen operational challenges at the mine during the ramp-up phase.