Name and Location
Marampa iron-ore project, Sierra Leone.

Client
Cape Lambert Resources and London Mining.

Project Description
Marampa is a specular hematite project, located 90 km north-east of Freetown, in Sierra Leone.

It comprises two licences, EL46A/2011 and EL46B/2011, with a total Joint Ore Reserves Committee-compliant resource of 680-million tonnes at 28.2% iron, covering the Gafal, Matukia, Mafuri and Rotret deposits.

Envisaged is a standalone openpit mining operation, with a wet high-intensity magnetic separation concentrator and associated infrastructure, initially at a production rate of two-million tons a year of high-grade hematite concentrate (Stage 1), expanding to ten-million tons a year within two years (Stage 2).

Value
Stage 1 capital investment is estimated at $458-million and Stage 2 at $1.05-billion.

Duration
A timeframe for the project has not been disclosed.

Latest Developments
ASX-listed Cape Lambert Resources has been granted its environmental licence for the Marampa iron-ore project.

The environmental licence is the first step in the permitting process and paves the way for a final mining lease application, which will be lodged during the second quarter of this year.

The environmental and mining licences will significantly derisk the project and adds value from a potential investor’s perspective by clearing the way for the development of the project.

Five parties are currently in the Marampa data room, reviewing the project details.

Cape Lambert has been actively seeking a buyer for an equity stake in the Marampa project, which covers four deposits and two granted exploration licences.

Cape Lambert also expects to finalise the rail and port agreement with African Minerals in the coming weeks.

Under the binding heads of agreement, Marampa had access rights to export two-million tonnes a year of wet iron concentrate through the recently refurbished and currently operational Pepel rail and port infrastructure, as well as 16.5-million tonnes a year through the Port of Tagrin, when operational.

However, in December 2012, African Minerals announced that it would not build the Port of Tagrin, but would instead expand its operations at Pepel, requiring the parties to finalise revisions to the agreement.

Key Contracts and Suppliers
Bateman Engineering (updated scoping study); Southern Mining Consultants or SMC (financial modelling).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Bateman Engineering, tel +27 11 899 9000, fax +27 11 899 4903 or email enquiries-africa@batemanengineering.com.
SMC, tel + 61 407 884 667 or email je@southernmc.com.au.
Cape Lambert Resources investor relations, Eloise von Puttkammer, tel +61 8 9380 9555 or email eloisev@capelam.com.au.