Bellzone in the red zone on Kalia study

Bellzone Mining, an iron ore company focused on the Republic of Guinea in west Africa, says its Kalia project is viable.

Kalia is Bellzone's flagship operation and a feasibility study has shown the mine could produce up to 46m tonnes of oxide and magnetite per year by 2020.

In order to get to that level however the company would require an investment of $1.7bn.

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A "deferred ramp up scenario" has also been drafted which estimates costs at $570m.

Perhaps because of concerns over funding for Kalia, Bellzone's stock has fallen 3.2% in morning trading.

In a separate release the firm says its 'Forcariah' joint venture has delivered its first "lump" product, to the tune of 13,600 tonnes with a grade of 59%.

BS