Name and Location
Mba Delta iron sands project, Viti Levu, Fiji.

Client
Amex Resources.

Project Description
The project has an indicated Joint Ore Reserves Committee-compliant resource of 220-million tonnes at 10.9% iron.

The project covers more than 132 km^₂ at the mouth of the Ba river, on the north-western coast of Fiji’s main island, Viti Levu. The resource occurs as a simple flat-lying blanket of fine to coarse magnetite-bearing sand, about 15 km long and up to 4 km wide. It is developed from the surface to depths of up to 9.4 m and averages 4.3 m in thickness. Geological and mineralisation continuity of the deltaic sand deposit is excellent and much of the surface of the resource is exposed at low tide.

The iron sands operation is planned to produce an initial 750 000 t/y of magnetite concentrate and will act as a stockpiling area for the magnetite concentrate prior to final treatment and export.

The project will consist of a dredging operation adjacent to the mouth of the Ba river, a floating concentration plant and barging of the iron sand concentrate to Lautoka port, as well as washing the concentrate at the port to remove sea salt and exporting the product in Handymax vessels.

The project is expected to have a 20-year mine life.

Value
The project is estimated at $60-million.

Duration
Production is expected to start in September 2014.

Latest Developments
Amex Resources has drawn down the first $20-million of a short-term loan facility to advance payment on its $100-million lump sum procurement, construction and management contract for its Mba Delta iron sands project.

During December last year, Amex secured $105-million in funding from two sources to fund the construction of the Mba Delta project.

The first short-term loan facility was for $25-million, while a further $80-million funding was secured from a major Chinese State-owned entity.

Construction work on the Mba Delta project is expected to start in February.

Key Contracts and Suppliers
ProMet Engineers (prefeasibility study and bankable feasibility study); Allied Mineral Laboratories (metallurgical testwork); and Southern Mining Consultants (initial financial modelling).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Amex Resources Tel: +618 9480 0455, fax +618 9321 0320 or email email info@amex.net.au.