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MTX - Metorex Limited - Metorex Group Mineral Resources and ore reserves
update
Metorex Limited
(Incorporated in the Republic of South Africa)
(Registration number 1934/005478/06)
Share code: MTX
ISIN: ZAE000022745
Issuer code: MEMTX
("Metorex" or "the Company")
METOREX GROUP MINERAL RESOURCES AND ORE RESERVES UPDATE
Introduction
Over the past two years Metorex has implemented a mineral resource and ore
reserve estimation process that is managed in a conservative, consistent
manner and conforms to international standards. This implementation is good
corporate governance and best practice and was initiated to de-risk existing
operations and growth projects and in so doing enhance the technical inputs
into the business. Over the past twelve months the Group has escalated
exploration and associated project activity to increase confidence in the
growth projects and ensure reporting is in full compliance with SAMREC.
Mineral Resources
Metorex is pleased to announce an increase in group mineral resources, with a
general upgrading of copper and cobalt resources from the inferred mineral
resource category into the indicated and measured categories. During the
period between June 2009 and March 2011 ("F2010 period"), historical non-
SAMREC resource estimates for two of the Growth Projects (Dilala East and
Lubembe) were converted into SAMREC compliant resources.
Summary of Metorex company copper mineral resources
Mineral Resources (`000t contained copper)
Operation / Measured + Inferred Total Resources
Project Indicated
F2009 F2010 F2009 F2010 F2009 F2010
Ruashi oxides 630 611 186 181 817 792
Ruashi sulphides 0 45 248 407 248 452
Chibuluma 238 196 0 0 238 196
Chifupu 0 27 59 0 59 27
Kinsenda 863 166 0 774 863 910
Lubembe 0 1,040 1,045 761 1,045 1,801
Dilala East 0 452 0 110 0 563
TOTAL 1,732 2,537 1,539 2,203 3,270 4,740
+46.5% +43.2% +44.9%
Total Group copper mineral resources for the F2010 period increased by 44.9
percent from 3.27 Mt to 4.74 Mt of contained copper, driven largely by the
Dilala East and Lubembe deposits. Contained copper in resources at Dilala
East and Lubembe increased by 563kt (+100 percent increase) and 756kt (+72
percent increase) respectively compared to the F2009 resource base.
Incremental gains in total contained copper tonnage were also made at
Kinsenda, where the total contained copper resource increased by 47kt (+5
percent increase), and the Ruashi Sulphides where the contained copper
resource increased by 204kt (+82 percent increase).
Drilling on the eastern side of the Ruashi 3 Oxide resource has established a
+100m strike continuation of the orebody as well as a significant thickening
of the mineralisation in the upper stratigraphic units. In addition, the
continued increase in the copper price during F2010 has had a positive impact
on the economics of the operation and resulted in a reduction in the cut-off
grade used in the December 2010 Ruashi life of mine reserve plan and schedule.
In order to comply with the SAMREC Code and the Metorex Mineral Resource
Management ("MRM") Code of Practice, the economic viability of the Ruashi
resource has been defined using a US$12,000 per ton copper optimized whittle
pit (economic resource based on a +50 percent increase in the US$8,000 per ton
pricing scenario used for LOM planning). The impact of both exploration and
cut-off grade changes at Ruashi is a 179,000 ton (+16 percent increase)
increase in the Ruashi Oxide and Sulphide contained copper mineral resource.
A large proportion of the Kinsenda resource was changed from measured /
indicated to inferred by Snowden Mining Consultants due to, in their opinion,
the inadequacy of quality assurance quality control ("QA/QC") data on the
historical assay data. This resource had previously been signed off by
FinOre, based in Perth, as a qualified JORC compliant measured mineral
resource on the basis of limited QA/QC checks against two historical
drillholes to verify the historical assay data used in the resource estimate.
Comparison of data from 19 new drillholes completed in F2010 with the
historical data in a portion of the orebody has indicated a conservative grade
bias in the historical data. Subsequent to year end the Metorex Board
approved an additional drilling programme on the Kinsenda property.
Summary of Metorex cobalt mineral resources
Mineral Resources (`000t contained cobalt)
Operation/Project Measured and Inferred Total
Indicated Resources
F2009 F2010 F2009 F2010 F2009 F2010
Ruashi oxides 71 98 11 14 83 112
Ruashi sulphides - 7 21 41 21 48
Dilala East - 136 - 34 - 170
TOTAL 71 241 32 89 103 330
237% 180% 219%
Group cobalt mineral resources increased by 219 percent from June 2009 to the
end of December 2010. The Dilala East project in Kolwezi was the main driver
behind these increases, contributing an additional 170,000 tons of contained
cobalt.
Ore Reserves
Summary of Metorex copper and cobalt mineral reserves
Copper Reserves (`000t) Cobalt Reserves (`000t)
Operation / Project Proved and Probable Proved and Probable
F2009 F2010 F2009 F2010
Ruashi oxides 491 523 59 88
Ruashi sulphides 0 0 0 0
Chibuluma 143 132 0 0
Chifupu 0 0 0 0
Kinsenda 0 0 0 0
Lubembe 0 0 0 0
Dilala East 0 0 0 0
TOTAL 634 655 59 88
3% 49%
Group copper mineral reserves have increased by 3 percent due to exploration
and changes in the reserve cut-off grade. There has been a 49 percent
increase in the contained cobalt mineral reserves as a result of the
application of a bi-metallic, copper equivalent cut-off grade at Ruashi.
Mining design and scheduling studies for the Kinsenda project were still in
progress at year end and were not defined to an adequate level of detail for
reporting of mineral reserves.
Outlook
Extension and infill drilling at Ruashi will continue during F2011 and is
likely to continue adding incremental tons and confidence to the Ruashi Oxide
resource. Infill drilling on the Ruashi Sulphide resource should convert
further inferred sulphide resources into the indicated or measured category.
A key focus area for the Company will be the conversion of inferred resources
at Kinsenda, Lubembe and Dilala East into the indicated and measured category
to derisk the projects further and provide confidence in the resource estimate
to be converted to reserves in the early years of the projects.
Exploration drilling at Chibuluma South and Chifupu are also expected to add
incremental tons to the resource.
Completion of the Kinsenda mining study for the bankable feasibility study
will enable the declaration of a SAMREC compliant mineral reserve during
F2011.
Detailed report
A detailed report on Metorex Mineral Resources and Ore Reserves is available
on the Metorex website www.metorexgroup.com. All figures contained in this
announcement are reflected on a 100 percent ownership and not on an
attributable basis.
Operation/Project Ownership %
Ruashi 75
Chibuluma 85
Chifupu 85
Kinsenda 77
Lubembe 77
Dilala East 75
Competent Person
Mineral Resources and Reserves in this update have been reviewed and compiled
by Mr. T P Williams, BSc (Hons), PrSciNat (South African Council of Natural
and Scientific Professionals Registration No 400387/04), Fellow of the
Southern African Institute of Mining and Metallurgy. Mr Williams is Group
Mineral Resource Manager and is a full-time employee of the Company. He is a
mining geologist with 20 years experience in exploration, resource
development, estimation and mining geology in gold and base metals through
west, central and east Africa. Mr. Williams is based at the Company`s Head
Office at 5th Floor, The Mall Offices, Cradock Avenue, Rosebank, 2146,
Johannesburg.
Johannesburg
4 April 2011
For further enquiries please contact:
Metorex CEO, Terence Goodlace Tel: 011 215 4000
CFO, Maritz Smith
College Hill Jacques de Bie Tel: 011 447 3030
Sponsor: One Capital
Date: 04/04/2011 07:20:01 Supplied by www.sharenet.co.za
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