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Overview
Licence: 425 km2
Target: Haematite/Magnetite deposit with potential strike of 12km
Resource: NI 43-101 Inferred resource estimate of 1.07 Bt @ 37.6% Fe from 2.6km of strike
Location: South East Liberia 100km for Atlantic Coast
Status: 4,000m drilling program completed
Current program:27,000m drill programme and airborne survey
Ownership: 38.5% Mano River Iron Ore Holdings, 61.5% Severstal Group
Current Status
In July 2009 SRK Consulting (UK) Ltd was engaged to produce a National Instrument 43-101 (NI43-101) compliant Independent Mineral Resource Estimate for the Putu Iron Ore Project based on previously announced drilling results.
The estimate for the 2.6km section of the 12km ridge drill tested to date provided an initial Inferred Mineral Resource of 1,077 million tonnes at a grade of 37.6% total of Banded Iron Formation (BIF) mineralisation.
Selected results from the 4,000m drilling programme include:
- 63.54% Fe (Haematite) over 63.0m
- 54.21% Fe (Haematite) over 54.6m
- 63.60% Fe (Haematite) over 49.5m
- 39.04% Fe (Fresh Magnetite) over 367.4m
The assay data was composited to 5 metres and used in statistical and geostatistical (Variography) studies that enabled Ordinary Kriging (OK) to be applied as the main grade interpolation method.
Putu Range Prospect
SRK has reported the Mineral Resource split into the following material types:
- Oxidised BIF (CAP) material,
- Haematite BIF (HBIF), and
- Magnetite BIF (MBIF).
This Mineral Resource Statement is presented in Table 1. The statement has been classified in accordance with the Guidelines of National Instrument 43-101 and accompanying documents 43-101.F1 and 43-101.CP.
Table: 1 - Putu Deposit, Initial Mineral Resource Statement
Category | Material | Tonnes (Mt) | Fe (%) | Al2O3 (%) | SiO2 (%) | P2O5 (%) | LOI(%) |
Inferred | CAP | 126 | 43.9 | 7.7 | 21.4 | 0.32 | 6.4 |
Inferred | HBIF | 283 | 34.3 | 1.8 | 42.3 | 0.17 | 1.7 |
Inferred | MBIF | 668 | 37.8 | 0.5 | 40.8 | 0.18 | 0 |
*Reported above 300 Relative Level (RL), as of 20 July 2009, at zero cut-off grade, with no optimised pit shell, which is considered to represent reasonable prospect for economic extraction.
In addition to the Inferred Mineral Resource as quoted above in Table 1, beneath the 300RL, and within the geological model, there is some 364 Mt of magnetite BIF.
Current exploration programme
To date 11 drill holes have been completed to a maximum depth of approximately 400m. The drill holes were positioned to allow for an initial resource estimate and to prove the geological model. Four out of the 11 holes drilled ended whilst still in mineralization. Table 2 shows the drilling results.
Putu Field Camp
Table: 2 - Latest drilling results
| Drill Hole |
Drilled
Metres |
Average grade
(Fe %) |
Length Downhole
(m) |
From |
To |
Geology |
Comment |
| PDD001 |
133 |
54.21 |
54.6 |
0.0 |
54.6 |
Oxidized (Haematite) |
Ended in Mineralisation |
| PDD001 |
44.70 |
47.7 |
62.8 |
110.5 |
Fresh (Magnetite) |
| PDD001 |
39.05 |
14.6 |
118.5 |
133.0 |
Fresh (Magnetite) |
| PDD002 |
187.4 |
63.54 |
63.0 |
8.6 |
71.6 |
Oxidized (Haematite) |
Ended in Mineralisation |
| PDD002 |
47.78 |
63.4 |
71.6 |
135.0 |
Fresh (Magnetite) |
| PDD002 |
37.16 |
14.6 |
172.9 |
187.4 |
Fresh (Magnetite) |
| PDD003 |
401.2 |
43.96 |
18.5 |
0.0 |
18.5 |
Oxidized (Haematite) |
Ended in Mineralisation |
| PDD003 |
30.15 |
13.7 |
27.0 |
40.7 |
Fresh (Magnetite) |
| PDD003 |
33.62 |
41.1 |
53.0 |
94.0 |
Fresh (Magnetite) |
| PDD003 |
37.17 |
12.5 |
120.5 |
133.0 |
Fresh (Magnetite) |
| PDD003 |
39.45 |
9.4 |
155.1 |
164.5 |
Fresh (Magnetite) |
| PDD003 |
39.44 |
222.0 |
179.2 |
401.2 |
Fresh (Magnetite) |
| PDD004 |
401.4 |
62.37 |
9.5 |
0.0 |
9.5 |
Oxidized (Haematite) |
Ended in Mineralisation |
| PDD004 |
39.94 |
17.1 |
9.5 |
26.6 |
Fresh (Magnetite) |
| PDD004 |
39.04 |
367.4 |
34.0 |
401.4 |
Fresh (Magnetite) |
| PDD005 |
400.5 |
33.62 |
51.8 |
96.5 |
148.3 |
Fresh (Magnetite) |
Sequence Completed |
| PDD005 |
37.94 |
208.7 |
165.0 |
373.7 |
Fresh (Magnetite) |
| PDD006 |
394.5 |
55.56 |
8.0 |
0.0 |
8.0 |
Oxidized (Haematite) |
Sequence Completed |
| PDD006 |
42.78 |
22.0 |
31.5 |
53.5 |
Oxidized (Haematite) |
| PDD006 |
41.50 |
8.0 |
57.5 |
65.5 |
Oxidized (Haematite) |
| PDD006 |
37.43 |
99.3 |
90.2 |
189.5 |
Fresh (Magnetite) |
| PDD006 |
38.93 |
109.1 |
206.2 |
315.3 |
Fresh (Magnetite) |
| PDD007 |
596.6 |
43.37 |
18.0 |
36.5 |
54.5 |
Oxidized (Haematite) |
Sequence Completed |
| PDD007 |
43.21 |
8.3 |
148.1 |
156.4 |
Oxidized (Haematite) |
| PDD007 |
33.12 |
89.3 |
204.7 |
294.0 |
Fresh (Magnetite) |
| PDD007 |
33.10 |
67.2 |
300.0 |
367.2 |
Fresh (Magnetite) |
| PDD008 |
367.5 |
63.60 |
49.5 |
0.0 |
49.5 |
Oxidized (Haematite) |
Sequence Completed |
| PDD008 |
50.66 |
33.0 |
52.5 |
85.5 |
Oxidized (Haematite) |
| PDD008 |
50.72 |
34.5 |
97.5 |
132.0 |
Oxidized (Haematite) |
| PDD008 |
37.57 |
60.4 |
174.7 |
235.1 |
Fresh (Magnetite) |
| PDD009 |
350.1 |
60.65 |
19.5 |
0.0 |
19.5 |
Oxidized (Haematite) |
Sequence Completed |
| PDD009 |
41.65 |
15.4 |
19.5 |
34.9 |
Fresh (Magnetite) |
| PDD009 |
41.85 |
202.1 |
49.5 |
251.6 |
Fresh (Magnetite) |
| PDD010 |
364.5 |
43.99 |
57.5 |
0.0 |
57.5 |
Oxidized (Haematite) |
Sequence Completed |
| PDD010 |
30.28 |
19.2 |
97.7 |
116.9 |
Oxidized (Haematite) |
| PDD010 |
34.21 |
11.2 |
143.5 |
154.7 |
Oxidized (Haematite) |
| PDD010 |
33.15 |
66.7 |
206.0 |
272.7 |
Fresh (Magnetite) |
| PDD010 |
39.94 |
26.0 |
275.0 |
301.0 |
Fresh (Magnetite) |
| PDD011 |
360 |
61.27 |
91.1 |
0.0 |
91.1 |
Oxidized (Haematite) |
Sequence Completed |
| PDD011 |
47.26 |
17.1 |
103.6 |
120.7 |
Oxidized (Haematite) |
| PDD011 |
40.77 |
136.1 |
120.7 |
256.8 |
Fresh (Magnetite) |
| Total |
4,681.2 |
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Composite cut-off 25% for fresh ore & 35% for oxidized ore
Concurrent with the drilling program an historic drilling adit, approximately 300m below the ridge-line and roughly in the middle of the Putu Range was re-opened and made safe. When fully opened the adit was found to be 208m long, samples at 2.0m intervals yielded an average iron content of 42.7% Fe. These samples were also tested for their magnetic susceptibility, a measure of their magnetic iron minerals content (predominantly magnetite; however haematite does have a week magnetic signature). The results along the adit showed a significant increase in the magnetic susceptibility at approximately 66m from the adit mouth indicating the thickness of the overlying haematitic material to be circa 60m at that point. It was noted at the time that the adit was terminated whilst still in mineralised material of interesting grade. Table 3 shows the results from the channel sampling in the adit.
Putu adit
Table: 3 - Channel sampling results
Sample
Interval m |
1.43
SAMPLE NO. |
Fe2O3% |
Iron Fe |
Magnetic susceptibility |
| 0 to 2 |
R-PUTA-1 |
84.66 |
59.20 |
2.9 |
| 2 to 4 |
R-PUTA-2 |
79.42 |
55.54 |
1.2 |
| 4 to 6 |
R-PUTA-3 |
84.52 |
59.11 |
0.5 |
| 6 to 8 |
R-PUTA-4 |
85.50 |
59.79 |
4.6 |
| 8 to 10 |
R-PUTA-5 |
79.16 |
55.35 |
1.9 |
| 10 to 12 |
R-PUTA-6 |
73.29 |
51.25 |
2.9 |
| 12 to 14 |
R-PUTA-7 |
83.11 |
58.12 |
9.3 |
| 14 to 16 |
R-PUTA-8 |
78.11 |
54.62 |
10.9 |
| 16 to 18 |
R-PUTA-9 |
83.96 |
58.71 |
3.2 |
| 18 to 20 |
R-PUTA-10 |
81.29 |
56.85 |
0.2 |
| 20 to 22 |
R-PUTA-11 |
75.02 |
52.46 |
1.5 |
| 22 to 24 |
R-PUTA-12 |
60.01 |
41.97 |
0.6 |
| 24 to 26 |
R-PUTA-13 |
69.29 |
48.46 |
2.8 |
| 26 to 28 |
R-PUTA-14 |
71.33 |
49.88 |
0.2 |
| 28 to 30 |
R-PUTA-15 |
48.76 |
34.10 |
5.9 |
| 30 to 32 |
R-PUTA-16 |
37.32 |
26.10 |
0.5 |
| 32 to 34 |
R-PUTA-17 |
34.16 |
23.89 |
0.3 |
| 34 to 36 |
R-PUTA-18 |
40.92 |
28.61 |
0.3 |
| 36 to 38 |
R-PUTA-19 |
60.02 |
41.97 |
0.7 |
| 38 to 40 |
R-PUTA-20 |
72.11 |
50.42 |
2.2 |
| 40 to 42 |
R-PUTA-21 |
60.83 |
42.54 |
2.9 |
| 42 to 44 |
R-PUTA-22 |
61.63 |
43.09 |
3.3 |
| 44 to 46 |
R-PUTA-23 |
73.33 |
51.28 |
3.7 |
| 46 to 48 |
R-PUTA-24 |
74.11 |
51.83 |
2.8 |
| 48 to 50 |
R-PUTA-25 |
84.19 |
58.87 |
2.9 |
| 50 to 52 |
R-PUTA-26 |
77.58 |
54.25 |
12.0 |
| 52 to 54 |
R-PUTA-27 |
78.94 |
55.21 |
2.4 |
| 54 to 56 |
R-PUTA-28 |
67.20 |
46.99 |
16.9 |
| 56 to 58 |
R-PUTA-29 |
58.92 |
41.20 |
15.2 |
| 58 to 60 |
R-PUTA-30 |
55.49 |
38.80 |
25.0 |
| 60 to 62 |
R-PUTA-31 |
62.52 |
43.72 |
30.9 |
| 62 to 64 |
R-PUTA-32 |
54.23 |
37.92 |
37.3 |
| 64 to 66 |
R-PUTA-33 |
60.10 |
42.03 |
56.6 |
| 66 to 68 |
R-PUTA-34 |
57.04 |
39.89 |
26.6 |
| 68 to 70 |
R-PUTA-35 |
53.79 |
37.61 |
57.5 |
| 70 to 72 |
R-PUTA-36 |
54.39 |
38.04 |
55.4 |
| 72 to 74 |
R-PUTA-37 |
59.39 |
41.53 |
25.7 |
| 74 to 76 |
R-PUTA-38 |
55.31 |
38.68 |
67.8 |
| 76 to 78 |
R-PUTA-39 |
57.32 |
40.08 |
66.2 |
| 78 to 80 |
R-PUTA-40 |
55.92 |
39.11 |
32.6 |
| 80 to 82 |
R-PUTA-41 |
55.31 |
38.68 |
38.3 |
| 82 to 84 |
R-PUTA-42 |
48.57 |
33.96 |
17.1 |
| 84 to 86 |
R-PUTA-43 |
44.01 |
30.77 |
51.3 |
| 86 to 88 |
R-PUTA-44 |
57.45 |
40.17 |
7.5 |
| 88 to 90 |
R-PUTA-45 |
57.96 |
40.53 |
21.5 |
| 90 to 92 |
R-PUTA-46 |
57.14 |
39.95 |
61.4 |
| 92 to 94 |
R-PUTA-47 |
58.24 |
40.73 |
80.5 |
| 94 to 96 |
R-PUTA-48 |
58.07 |
40.61 |
53.8 |
| 96 to 98 |
R-PUTA-49 |
58.87 |
41.17 |
56.1 |
| 98 to 100 |
R-PUTA-50 |
52.33 |
36.60 |
60.3 |
| 100 to 102 |
R-PUTA-51 |
59.77 |
41.80 |
53.1 |
| 102 to 104 |
R-PUTA-52 |
59.32 |
41.48 |
62.9 |
| 104 to 106 |
R-PUTA-53 |
54.95 |
38.43 |
75.7 |
| 106 to 108 |
R-PUTA-54 |
54.54 |
38.14 |
59.4 |
| 108 to 110 |
R-PUTA-55 |
60.95 |
42.62 |
43.0 |
| 110 to 112 |
R-PUTA-56 |
54.67 |
38.23 |
52.5 |
| 112 to 114 |
R-PUTA-57 |
58.46 |
40.88 |
57.0 |
| 114 to 116 |
R-PUTA-58 |
57.25 |
40.04 |
49.1 |
| 116 to 118 |
R-PUTA-59 |
64.31 |
44.98 |
80.3 |
| 118 to 120 |
R-PUTA-60 |
55.80 |
39.02 |
75.2 |
| 120 to 122 |
R-PUTA-61 |
59.90 |
41.89 |
45.8 |
| 122 to 124 |
R-PUTA-62 |
63.23 |
44.22 |
47.0 |
| 124 to 126 |
R-PUTA-63 |
60.68 |
42.43 |
57.8 |
| 126 to 128 |
R-PUTA-64 |
56.05 |
39.20 |
51.3 |
| 128 to 130 |
R-PUTA-65 |
57.15 |
39.96 |
46.5 |
| 130 to 132 |
R-PUTA-66 |
54.82 |
38.34 |
65.7 |
| 132 to 134 |
R-PUTA-67 |
52.95 |
37.02 |
48.7 |
| 134 to 136 |
R-PUTA-68 |
54.86 |
38.36 |
66.3 |
| 136 to 138 |
R-PUTA-69 |
57.78 |
40.41 |
61.0 |
| 138 to 140 |
R-PUTA-70 |
53.97 |
37.74 |
77.2 |
| 140 to 142 |
R-PUTA-71 |
54.33 |
37.99 |
58.0 |
| 142 to 144 |
R-PUTA-72 |
57.72 |
40.37 |
110.0 |
| 144 to 146 |
R-PUTA-73 |
61.11 |
42.74 |
75.5 |
| 146 to 148 |
R-PUTA-74 |
54.77 |
38.30 |
76.4 |
| 148 to 150 |
R-PUTA-75 |
56.69 |
39.64 |
71.4 |
| 150 to 152 |
R-PUTA-76 |
58.27 |
40.75 |
94.6 |
| 152 to 154 |
R-PUTA-77 |
55.30 |
38.67 |
70.3 |
| 154 to 156 |
R-PUTA-78 |
56.33 |
39.39 |
56.5 |
| 156 to 158 |
R-PUTA-79 |
55.43 |
38.76 |
84.1 |
| 158 to 160 |
R-PUTA-80 |
53.31 |
37.28 |
66.2 |
| 160 to 162 |
R-PUTA-81 |
54.40 |
38.04 |
79.4 |
| 162 to 164 |
R-PUTA-82 |
55.24 |
38.63 |
70.6 |
| 164 to 166 |
R-PUTA-83 |
55.78 |
39.01 |
119.0 |
| 166 to 168 |
R-PUTA-84 |
54.12 |
37.85 |
78.3 |
| 168 to 170 |
R-PUTA-85 |
55.12 |
38.54 |
88.6 |
| 170 to 172 |
R-PUTA-86 |
56.31 |
39.38 |
62.8 |
| 172 to 174 |
R-PUTA-87 |
57.28 |
40.05 |
63.9 |
| 174 to 176 |
R-PUTA-88 |
56.70 |
39.65 |
69.7 |
| 176 to 178 |
R-PUTA-89 |
57.89 |
40.48 |
78.1 |
| 178 to 180 |
R-PUTA-90 |
58.24 |
40.73 |
57.7 |
| 180 to 182 |
R-PUTA-91 |
61.00 |
42.66 |
92.1 |
| 182 to 184 |
R-PUTA-92 |
57.19 |
39.99 |
65.7 |
| 184 to 186 |
R-PUTA-93 |
55.66 |
38.93 |
66.8 |
| 186 to 188 |
R-PUTA-94 |
54.89 |
38.38 |
64.9 |
| 188 to 190 |
R-PUTA-95 |
56.14 |
39.26 |
162.0 |
| 190 to 192 |
R-PUTA-96 |
58.76 |
41.09 |
42.9 |
| 192 to 194 |
R-PUTA-97 |
57.15 |
39.97 |
143.0 |
| 194 to 196 |
R-PUTA-98 |
58.62 |
40.99 |
75.7 |
| 196 to 198 |
R-PUTA-99 |
60.03 |
41.98 |
69.3 |
| 198 to 200 |
R-PUTA-100 |
58.10 |
40.63 |
87.3 |
| 200 to 202 |
R-PUTA-101 |
54.63 |
38.20 |
94.7 |
| 202 to 204 |
R-PUTA-102 |
53.69 |
37.55 |
63.3 |
| 204 to 206 |
R-PUTA-103 |
52.30 |
36.57 |
63.0 |
| 206 to 208 |
POCR-133 |
80.69 |
56.43 |
63.0 |
(adit ended in mineralisation)
| |
Haematitic zone |
| |
Magnetitic Zone |
Samples are 2m in length.
They are chip samples from the adit wall.
Geological Setting
Sampling and mineralogical analysis completed by Mano indicate that the predominant iron mineral is magnetite-itabirite which is overlain by a substantial layer of haematite-itabirite. The quality of the mineralisation is high and locally very high, with low phosphorous and alumina values, similar in many ways to that of the Bong mine which operated until 1994.
The overlying haematitic material which can produce high grade direct shipping ore with a high lump/fines ratio which will require substantially less energy to produce than the pellets/concentrate that can be produced from the magnetitic material. Planned metallurgical testing will determine the magnitude of this benefit, however if the material is shown to be similar to that at Bong, these benefits could be substantial. The principal gangue material is quartz which is found in both veinlets and a generally coarse grain size which should facilitate its removal during processing.
Infrastructure & Local Resources
Iron ore is a bulk material and the location of the deposit has great influence on the economics of a project. Putu is particularly favourably, situated just over 100km from the Atlantic coast and importantly the terrain between it and the coast gently sloping and is free from any major topographic features.
Three possible deep water port sites have been identified and initial investigations by the Australian consultancy Quantm have shown that possible rail routes exist that have no major infrastructure considerations, such as bridges or earthworks required and are in the range of 110 to 140km long. There is currently no major port on the stretch of coast to the south of Putu, however deep water is to be found very close inshore in all three potential sites, deep enough to accommodate large bulk carriers.
About Severstal Group
Severstal Resources is a 6.29% shareholder in Mano River Resources Inc through its wholly owned subsidiary, Lybica Holdings B.V. The Company signed an agreement on 22 May 2008 and subsequently completed the transaction with Severstal on the 10 December 2008. The deal provides for US$15m cash being injected into the joint venture company, now renamed Severstal Liberia Iron Ore Ltd, as well as an additional US$15m debt facility. This US$30m will provide for the specific advancement towards a definitive feasibility study.
Severstal Resources is the mining division of OAO Severstal (www.severstal.com) and one of the biggest mining companies in Russia. Severstal Resources manages all Severstal's mining assets: two iron ore mining complexes and a coking coal complex in northwest Russia, one coking coal complex in USA (PBS Coal), a ferroniobium extraction complex in West Russia and an exploration project, Severstal Liberia Iron Ore in West Africa. Severstal Resources also manages a number of gold mining assets in Russia, Kazakhstan and Burkina Faso as well as several gold exploration fields in these regions. In 2008 EBITDA was $859 million. OAO Severstal is an international metals and mining company with a listing on the Russian Trading System, Moscow Interbank Currency Exchange and the London Stock Exchange. Its enterprises are located in Russia, Ukraine, Kazakhstan, United Kingdom, France, Italy, United States and Africa. In 2008, Severstal produced 19.2 million tonnes of steel. Revenues were $22.4 billion and EBITDA was $5.4 billion. EPS was $2.2.
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