Mbalam iron ore project increases capacity

01 June 2008 | 03:32 Code : 17490 Geoscience events
International iron ore company Sundance Resources Ltd has provided an update...

  International iron ore company Sundance Resources Ltd has provided an update on exploration activities at its 90%-owned Mbalam Iron Ore Project in Cameroon, West Africa.Drilling capacity at the Mbalam Project has been substantially increased with six rigs now on site. Five of these rigs are currently operating with the final rig expected to be commissioned this weekend.The new drilling capacity includes the two new Thor Reverse Circulation (RC) drilling rigs manufactured in South Africa and two RC rigs and a diamond drilling rig supplied by international drilling contractor Ausdrill. In total, Sundance has four RC rigs and two diamond rigs on site. This will significantly enhance drilling productivity and enable the Company to accelerate its assessment of both Direct Shipping Ore (DSO) and itabirite hematite mineralization at Mbalam.Sundance has an extensive exploration program planned for 2008 with a total exploration budget of approximately $35 million which is fully funded from the company’s existing cash reserves of $62 million. Two RC rigs and two diamond rigs are currently testing the extent and depth of the resource potential on the Mbarga prospect. One RC rig is currently testing the Mbarga South prospect, which was identified during surface mapping and preliminary drilling in the December quarter. It is intended to shortly dispatch two of the RC rigs to start drilling the Metzimevin prospect in the June quarter.Sundance CEO Mr Don Lewis said: “We are pleased with the initial performance of the new rigs and are already seeing the benefits of increased drilling rates. The new RC rigs are drilling to depths of up to 300m and the diamond rigs will continue to drill holes to 300-500m depth”“We continue to be encouraged by the progress of exploration at Mbalam and expect to progressively announce tonnage ranges for both DSO and itabirite hematite mineralisation.”

tags: etc

Your Comment :