Sphere completes pre-feasibility on $1.86bn iron ore JV

West Perth-based mining company Sphere Investments Ltd has completed a pre-feasibility study on its Guelb el Aouj iron ore joint venture in Mauritania, with an estimated total capital cost of $1.86 billion.

A summary of the company's announcement is pasted below

Sphere Investments Ltd is pleased to announce the results of the Pre-Feasibility Study on the 7Mt/a Guelb el Aouj DR pellet project, being developed in Joint Venture with Société Nationale Industrielle et Minière in Mauritania, West Africa.

Progress to date has been very encouraging, and the project partners have already moved to a Definitive Feasibility Study in order to complete a bankable study. Many of the key work activities are already well beyond the PFS stage.

Summary of key PFS outcomes

• Completion of the Resource Definition drilling, reported to JORC Code requirements. Sufficient Measured (188Mt) and Indicated (313Mt) Resources were defined to provide 178Mt Proved Ore Reserves and 294Mt Probable Ore Reserves, underpinning 30 years of production.
• Completion of preliminary mine planning confirming a favourably low life-of-mine waste to ore strip ratio of 1.1 to 1.0.
• Experience-based judgement by Golder Associates Pty Ltd suggests that, after seven months of systematic hydrogeological field investigations, the Touajil area can probably provide a significant part of the Project water supply.
• Selection of a process flowsheet based on successful roller press testwork.
• Selection of the preferred project configuration case (Case B - all processing facilities at the minesite), following successful roller press testing and hydrogeological research to date.