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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
