Name and Location
Malelane iron-ore project, Mpumalanga, South Africa.

Client
Ferrex.

Project Description
The project is located over part of the Archaean Barberton greenstone belt and covers 4 192 ha.

Three distinct banded iron formation (BIF) horizons have been identified on the property, with a combined strike length of 14 km and mapped horizontal widths of up to 300 m.

The project has a Joint Ore Reserves Committee-compliant inferred resource of 139-million tonnes at 37% iron, which is modelled on only 1.1 km of the 14 km BIF strike, and the project has an upgraded total exploration target of 1.6-billion tonnes to 2-billion tonnes at 28% to 30% iron, as announced in June 2013.

Envisaged is an initial 1.8-million-tonne operation at 57% iron, with a life-of-mine of 16.6 years and a conventional openpit mine with a strip ratio of 1.55:1.

Value
The project has an estimated capital expenditure (capex) of $139-million.

Duration
Not stated.

Latest Developments
The prospecting right for the Malelane iron-ore project has been extended to May 20, 2016.

The extension of the prospecting right is in line with Ferrex’s strategy to continue to develop the project as a low capex, initial 1.8-million-tonne-a-year operation with a mine life of 16.6 years.

Ferrex MD Dave Reeves says the extension of the prospecting right is a significant step in Malelane's development, as it will ensure sufficient time for the prefeasibility and bankable feasibility studies to be completed as the project advances towards production.

Key Contracts and Suppliers
Turgis Consulting (scoping study); Prime Resources (environmental plans) and Leyanda Group (social and labour plan).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Ferrex, tel +61 89 444 8433.
Turgis Consulting, tel +27 11 476 2279, fax +27 11 476 257 or
email info@turgis.co.zainfo@turgis.co.za.
Prime Resources, tel +27 11 447 4888, fax +2711 447 0355 or email prime@resources.co.za.
Leyanda Group, tel +27 11 684 1267, fax+27 11 684 1201 or email info@leyandagroup.com.