“The Next Generation in Iron Ore”

“The Next Generation in Iron Ore”

“The Next Generation in Iron Ore” Amex Resources Ltd (ASX(ASX::AXZ)AXZ) Amex Resources Ltd (‘Amex’) is an iron ore focused, mineral resources development company listed on the Australian Securities Exchange (ASX). The Company is currently concentrating on Feasibility Studies and Development of its Mba Delta Ironsand Project, in the Fiji Islands. Philosophy The Company’s philosophy is to: “To acquire, explore and develop mineral properties that show real potential for production of economic iron ore mineralisation, in order to increase shareholder wealth” Projects The Company’s focus is the Mba Delta Ironsand Project in Fiji. Amex also maintains an aggressive program of exploration and project generation. The Company’s project portfolio includes: • Mba Delta Ironsand Project, Viti Levu, Fiji – Development, • Mt Maguire Iron Ore Project, Ashburton, WA – Exploration, • Paraburdoo South Iron Ore Project, Pilbara, WA – Exploration, • Channar West Iron Ore Project, Pilbara, WA – Application. The Company continues to evaluate iron ore properties in the Asia-Pacific region for addition to its project portfolio. Recent Highlights Amex is currently completing Feasibility Studies over its Mba Delta Ironsand Project. Highlights from the Company’s exploration and development program include: • Increased JORC Resource and status upgraded to ‘Indicated’: 220 Million Tonnes @ 10.9% Fe (Iron) • Pilot plant commissioned and producing samples of concentrate for export from Fiji for evaluation by potential end users and strategic partners in China. • Concentrates high quality, grading >58% Fe through simple magnetic separation, with low impurities: 58.5% Fe & 0.65% V2O5 with 5.2% Al 2O3 0.37% CaO 0.05% K 20 3.4% MgO 0.04% Na 2O 0.03% P <0.01% S, 1.5% SiO 2 & 6.5% TiO 2. • World Leading Ironsand Process Expert, Dr Chris Ure, is the Company’s General Manager of Operations and Development, managing the Feasibility Studies over the Mba Delta Project. • ProMet Engineers in Perth, WA, engaged to undertake both Pre-Feasibility (‘PFS’) and Bankable Feasibility Studies (‘BFS’) - PFS scheduled for completion in June 2011 - BFS scheduled for completion in October 2011. • Lease secured at the Lautoka Port, ensuring an export facility for the ironsand concentrate, approximately 30kms SW of the Project. • Significant area of licence adjacent to the existing mineral resource not yet tested, may lead to at least doubling of the current resource inventory. Ironsand ––AAProductProduct inin Demand Ironsand is increasingly in demand as an alternative iron ore feedstock for use in iron making as reserves of high-grade, conventional hematite iron ore diminish and prices continue to climb. Unlike conventional hard rock magnetite, the traditional ore alternative to hematite, ironsand concentrate can be produced at comparatively low cost. Chinese steelmakers in particular are keenly interested in acquiring ironsand concentrates to blend with either imported or their own expensive feedstock. Ironsand deposits are known worldwide, but not all are equally suitable for iron making due to presence of various critical impurities, or the need for some high-energy grinding to adequately liberate the titano-magnetite. Currently, the world’s major source of ironsand suitable for iron making is New Zealand, Fiji’s near neighbour. Amex’s Mba Delta ironsand has similar chemical and physical characteristics as New Zealand ironsand, placing it at the forefront of developing projects as an alternative ore source for Asian steelmakers. Mba Delta Ironsand Project The Mba Delta Ironsand Project is located in the northwest of Fiji’s main island, Viti Levu, and is held 100% by Amex Resources under tenement number SPL 1463. The tenement covers an area of more than 120km 2, which includes the mouth of the Ba River and its surrounds. The Mba Delta hosts a significant deposit of ironsand, over which Amex is currently completing a Pre-Feasibility Study (“PFS”). The iron ore mineralisation of the Mba Delta is a ‘vanadiferous titano-magnetite’ ironsand, which has essentially the same chemical characteristics as Bluescope Steel’s ironsand on the North Island of New Zealand. Bluescope's ironsand has been successfully mined for over 25 years from a number of deposits, mainly Taharoa and Waikato, for export to Japanese and Chinese consumers and for internal use at Bluescope's Glenbrook steel mill. Mba Delta ––JORCJORC Resource In mid-2010, Amex carried out a comprehensive program of drilling across the mineralised sand banks of the Mba Delta. The program utilised a highly innovative drilling methodology, namely a barge-mounted Sonic Core drill rig (see below). Logistical issues with working in an intertidal environment, although highly advantageous for proposed dredge mining operations, make exploration challenging. Data provided from the Sonic Core has been exclusively utilised in estimation of the Indicated JORC resource for the Mba Delta. The Indicated Mineral Resource occurs as a simple flat lying blanket of fine to coarse magnetite-rich sand approximately 15 kilometres long by up to 4 kilometres wide. It is developed from surface to depths of up to 9.4 metres, and averages a thickness of 4.2 metres. Geological and mineralisation continuity of the deltaic sand deposit is excellent. Mba Delta Mineral Resource Summary JORC Status Tonnage Grade (Fe%) Indicated 220,000,000 10.9% Mba Delta ––ExplorationExploration Target The Sonic Core drilling program tested the shallow and intertidal magnetite-rich zones of the Mba Delta, planned to be the focus of the initial mining operation. Reconnaissance sampling and geological mapping has shown that the ironsand mineralisation extends both seawards and landwards from the present Indicated resource boundaries, leading to definition of an additional exploration target of: 200-300 Million Tonnes @ 10-15% Iron (Fe) As required under clause 18 of the JORC Code, it is stated that “the potential quantity and grade of this exploration target is conceptual in nature and there has been insufficient exploration to define a Mineral Resource outside the current Indicated Resource boundaries. It is uncertain that further exploration will result in the determination of additional Mineral Resources within this exploration target.” Amex is committed to bringing the current Indicated Mineral Resource at Mba Delta into production as soon as possible following completion of a Feasibility Studies. Any additional resources defined through extensional exploration will serve to extend the currently planned 18 year life. Mba Delta ––LautokaLautoka Port Amex has negotiated an option and long-term lease agreement over a substantial area at Fiji’s major bulk commodity shipping port of Lautoka, on the main island of Viti Levu. The port facility is well located, being less than 30 kilometres southwest of the Company’s Mba Delta Ironsand Project, and serviced by the second largest city in Fiji. The Lease agreement with the Fiji Ports Corporation Limited is for a 45 year term. This term reflects the potential project mine life, based on the current Indicated Resource of 220 million tonnes and the additional exploration target, which extends both inland and seaward. Amex’s port facility will provide a logistics base for the dredging and barging operation on the nearby Mba Delta, which is planned to initially produce 750,000 tonnes of magnetite ironsand concentrate annually, and will act as a stockpiling area for the magnetite concentrate prior to export. Lautoka is Fiji’s largest port for export of bulk cargoes, with ready access to major shipping lanes crossing the Pacific to Asia, including the dominant iron ore market in China. The Company is very pleased to have ‘locked in’ this vital export infrastructure for its Mba Delta Project. Amex Resources ––TheThe Next Generation inin Iron Ore Rapidly progressing Mba Delta Ironsand Project in Fiji Development planning well advanced Process design nearing finalisation - simple magnetic separation, no high grinding or chemicals Proposed mining operation simple and cost effective, minimum 18 year mine life - dredging, magnetic separation & concentration, barge to port Production and shipping of first concentrate planned before the end of 2012 Tight capital structure and well funded Experienced board and management Amex’s share price (A$) from Nov 2010 to May 2011 Corporate InFormation Directors Mr Dudley J. Kingsnorth Non-Executive Chairman Mr Matthew J. Collard Managing Director Mr Timothy S. Putt Technical Director Mr Yibo Qiu Non-Executive Director Company Secretary Mr Gary Dunlop Registered and Principal Office Issued Capital IBM Building, Level 3 At 25 May 2011, Amex had an issued capital of 1060 Hay Street 63,700,000 fully paid ordinary shares and 6,500,000 West Perth, unlisted options, held by 510 shareholders. Western Australia 6005 Tel: +61 (0) 8 9480 0455 Fax: +61 (0) 8 9321 0320 Investor Relations Enquiries concerning this document may be directed to either: Mr Matthew Collard – Managing Director or Mr Tim Putt – Technical Director Tel: +61 (0) 8 9480 0455 Shareholder Enquiries Matters relating to shares held, change of address and tax file numbers should be directed to the share registry at: Security Transfer Registrars Pty Ltd PO Box 535 Applecross Western Australia 6953 Tel: +61 (0) 8 9315 2333 Australian Stock Exchange releases and other information on Amex Resources is available at Amex’s website at www.amex.net.au Disclaimer This document has been prepared by Amex Resources Ltd (“Amex”) as a summary of the company’s exploration

View Full Text

Details

  • File Type
    pdf
  • Upload Time
    -
  • Content Languages
    English
  • Upload User
    Anonymous/Not logged-in
  • File Pages
    12 Page
  • File Size
    -

Download

Channel Download Status
Express Download Enable

Copyright

We respect the copyrights and intellectual property rights of all users. All uploaded documents are either original works of the uploader or authorized works of the rightful owners.

  • Not to be reproduced or distributed without explicit permission.
  • Not used for commercial purposes outside of approved use cases.
  • Not used to infringe on the rights of the original creators.
  • If you believe any content infringes your copyright, please contact us immediately.

Support

For help with questions, suggestions, or problems, please contact us