Friday, September 28, 2012

Zanaga Iron Ore Company Limited ("ZIOC") (AIM:ZIOC)


Zanaga Iron Ore Company Limited ("ZIOC" or the "Company") (AIM:ZIOC) is pleased to announce its unaudited interim results for the six months ended 30 June 2012.


Zanaga Project, Republic of Congo

· Pre-Feasibility Study to examine slurry pipeline transportation option ("Pipeline PFS") nearing completion

- Publication of key outcomes expected October 2012

· 57% increase in JORC Mineral Resource to 6.8 billion tonnes at 32.0% Fe, with 69% in the Measured & Indicated resource category

- Drilling programme to Feasibility Study standard completed

- 74% increase in Measured and Indicated resource category to 4.69 billion tonnes with an average grade of 32.5% Fe

- More than 176,000 metres drilled across only 25km of the 47km orebody


· Cash balance of US$42.5m as at 30 June 2012

Clifford Elphick, Non-Executive Chairman of ZIOC, commented:

"I am pleased to report substantial progress on the Zanaga Project during the first half of the year. Following the positive results of the Value Engineering Exercise on a slurry pipeline transportation option, a Pre-Feasibility Study was initiated to further refine this option, with the potential for improved economics and a higher grade product. The Pipeline PFS is nearing completion and we expect to announce the results in October 2012. This will assist in determining which transport option to take through to final Feasibility Study.

In addition, an extensive drilling campaign has been conducted to Feasibility Study standards, resulting in a 57% increase in the size of the JORC Mineral Resource, as well as further improvements in the understanding of our large orebody, The JORC Mineral Resource has now increased to 6.8 billion tonnes at 32% Fe, with 69% contained in the Measured & Indicated resource category."

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