Neuste Beiträge aus: West African Iron Ore Corp. / "Republic of Guinea"

Antwort auf Beitrag Nr.: 43.116.004 von Popeye82 am 03.05.12 15:37:31
MD &A - Apr 27, 2012
www.sedar.com/GetFile.do?lang=EN&docClass=7&issuerNo=0000521…



Auszug -Kassenstand:

"... As at December 31, 2011, the Company had working capital of $4,728,228 (September 30, 2010: $6,084,064). ..."



Operativ:

"... Update on current exploration work in Forécariah

Exploration work on the Forécariah permit is continuing and to-date, on the Kalyadi prospect, the Company has completed 9 diamond drill holes (“DDH”) totalling 1,924 metres and 3 reverse circulation drill holes (“RCH”) totalling 321 metres drilled. On Sambalama 12 DDH totalling 2,169 metres and 57 RCH totalling 7,125 metres have been completed to-date. At the date of this report, the Company completed 141 RCH totalling 4,375 metres on the Wondima/Amaraya prospect. Further drilling on the Sambalama/Kalyadi prospect will shortly resume with DDH and RCH to enable the Company to gather sufficient data to compile the first NI43-101 compliant resource report, anticipated to be available in Q4 2012.

Assay data has been received for 15 DDH on the Sambalama/Kalyadi prospect, (8 of which are included below). Results are also reported for 12 out of 20 RCH on Sambalama. The grades and the analytical results for 7 of these holes "appear to demonstrate that this material could be favourable for shipping with minimal processing (Direct Shipping Ore or DSO)." On-going surface sampling and mapping on Sambalama and Kalyadi has generated new surface targets with the potential for the delineation of additional DSO prospects from an iron-rich laterite cap that will be verified with a planned drill program once the drilling on the Wondima/Amaraya prospect is complete.


Current Diamond Holes reported on Sambalama:

DD Hole ID - From(m) - To(m) - Length(m) - % Fe Total

SAM002 2.28 13.75 11.47 63.18

SAM003 0 14.2 14.2 70.53

SAM004 33.6 41 7.4 41.54
60.8 67.2 6.4 30.44
88 107 19 25.47

SAM005 21.6 26.4 4.8 44.99
38.8 46 7.2 20.37

SAM006 19.8 32.6 12.8 36.01
48 73 25 28.62
75 82 7 24.35

SAM007 27 60 33 36.74

SAM008 37 51.2 14.2 26.85

SAM010 94 121.6 27.6 51.28


Current Reverse Circulation Holes reported on Sambalama:

DD Hole ID - From(m) - To(m) - Length(m) - % Fe Total

SAMRC001 0 8 8 64.95

SAMRC005 0 15 15 27.38
37 44 7 25.6

SAMRC006 0 12 12 25.1

SAMRC007 0 8 8 44.21

SAMRC008 0 7 7 59.2
0 23 23 28.26

SAMRC009 0 18 18 25.5

SAMRC011 0 120 120 28.71

SAMRC012 0 8 8 57.3
0 38 38 25.4

SAMRC013 0 12 12 56.83
0 42 42 26.16

SAMRC015 0 36 36 34.05


Davis Tube Recovery Tests (DTR) conducted on 88 selected composite samples from SAM 004 to SAM 006, indicated that the mineralisation can be upgraded with high recovery levels to produce a product with a grade of >66% Fe from feed with an iron content of as little as 25% Fe.


SAMBALAMA REVERSE CIRCULATION DRILLING

RC drilling on the Forécariah project resumed at the end of October 2011 having been put on hold for about 50 days to allow the implementation of both better logistics to handle the heavy rain during the rainy season, and also to accommodate the change in laboratory from SGS South Africa (Pty) Ltd, to SGS Canada Inc. in Lakefield, Ontario. This has achieved the desired results with an improvement in the turn-around time for samples submitted for analysis and a direct impact on geological understanding of the target. A total of 57 RCH have been drilled on the Sambalama prospect totalling 7,125 metres as of the date of this report.

Analyses conducted by SGS Laboratories in Lakefield, Canada have been partially completed on 12 RC holes and results reported. Work on the RC samples is on-going and includes Niton XRF analyses to help in the logging and allow selection of samples for analysis. Both SRK Consulting (Australasia) Ltd (“SRK”) and the QP approved all sample handling procedures used by SARG.


SAMBALAMA DIAMOND DRILLING

A total of twelve diamond holes have been completed at Sambalama for a total of 2,169 metres. To date SAM010 appears to be the most significant diamond drill hole completed, intersecting 27.60 m of Fe mineralization at depth between 94m to 121.60m in magnetite quartzite with an average Fe grade of 51.28%. Assay results to date have shown mineralization is variable from surface to a depth of up to 125 metres with Fe grades from 24.35% to 70.53%.

Due to the highly friable nature of the oxidised zone, recovery of the near-surface iron-enriched cap has been poor on all diamond holes; however, results from the reverse circulation drilling provided significantly better recoveries. Diamond drilling and reverse circulation drilling will resume on Sambalama by the end of Q2 2012.


KALYADI DIAMOND AND REVERSE CIRCULATION DRILLING

Nine DDH totalling 1,924 metres and 3 RCH totalling 321 metres have been completed and current interpretations indicate mineralization in magnetite bearing gneisses and amphibolite bands up to 15 metres thick and at depths of up to 150m, with a discontinuous near-surface iron enriched cap similar to Sambalama. Cores for sample analyses were sent to SGS Bamako for preparation and will be analyzed by SGS Canada. The Company is expecting to receive analyses results during Q2 2012.


FUGRO GRAVITY SURVEY UPDATE

Fugro Ground Geophysics PTY Ltd completed a ground gravity survey at the end of February 2012 to assist in the identification of further magnetite quartzite drill targets on the Sambalama and Kalyadi prospects. Raw data was provided to SRK for interpretation, and the final report is pending peer review. The gravity technique shows that the main magnetite quartzite unit is neither as continuous nor as wide as had been interpreted from the magnetics. Targets are now being generated based on both a high gravity response, and a coincident magnetic anomaly.


WONDIMA / AMARAYA DRILLING

After completion of follow-up geological mapping on the Wondima/Amaraya prospect, as well as a systematic surface sampling program on a grid of 400m X 200m over an area of 50 km2 over the target, the Company decided that the results were sufficiently encouraging to mount an intensive 8,000 metre drilling program across an area in excess of 40 km2 that will include 56 DDH and 233 RCH. The anomaly identified on this prospect is an oxide cap of hematite-goethite limonite from surface to a depth of up to 20 metres. The central part of the target consists of about 26km² of raised plateau with a flat and hard iron rich cap. 224 surface samples were collected from the target area during mapping and the average Fe content was estimated to be 34.73% using a hand held NITON XRF. Deleterious elements were also analyzed and provide the following results:

Si 4.1%
Al 2.5%
P Negligible
S Negligible


The RCH program started on March 9th, 2012 and at the date of this report, we completed 141 RCH totalling 4,375 metres (ARMC085 to ARMRC194). The DDH program is planned to start on this prospect during the first week of May 2012. This shallow drilling program has been designed to define a NI43-101 compliant resource by Q4 2012.

The Company issued a press release on March 21st, 2012 (NR12-03) with preliminary results using a NITON XRF (see results below). The methodology of sample preparation includes sun drying the entire sample; manual crushing of large RC chips to -10mm +90%; rolling the sample and riffle split to 3-5kg. This 3-5 kg split is rolled again and a 150-200 g sub sample is extracted by coning and quartering for NITON assay. 1kg is extracted for lab assay and the balance of 2-3 kg is preserved in the library as reference sample in labeled one-litre plastic jars. The 200g NITON sub-samples are analyzed using a NITON Thermo Scientific XL 3t GOLDD+ XRF in the lab. The NITON instrument is wiped after every assay and calibrated with a CRM standard twice every day.


Hole ID - Thickness - Fe% - Si% - Al% - P% - S%

AMARC085 13m 35.43 1.17 3 <LOD <LOD

AMARC086 10m 25.39 2.63 3.2 <LOD <LOD

AMARC087 11m 31.68 1.64 2.98 <LOD <LOD

AMARC088 18m 30.46 2.98 2.98 <LOD <LOD

AMARC089 13m 36.31 1.04 2.63 <LOD <LOD

AMARC090 18m 30.31 1.92 3.14 <LOD <LOD


Legend: <LOD Limit of Detection below 10ppm or 0.001%


380 samples, representing 62 RCH completed on the Wondima/Amaraya prospect were shipped for analyses to Inspectorate Exploration & Mining Services Ltd a Bureau Veritas company in Reno, Nevada, United States. Results are anticipated to be received by the end of May 2012.

Proposed and current drilling program on the Wondima/Amaraya prospect: ...


Forécariah Project

The Forécariah Project is covered by three permits under License number A2008/043/DIGM/CPDM, published as order A/2008/3722/MMG/SGG on October 8th, 2008 in the Official Journal of the Republic of Guinea. The permits are currently valid until May 31st, 2012, and are renewable for two periods of two years thereafter. The Forécariah Project is located approximately 90km from Conakry, the capital city of Guinea, along National Road 1, which joins Conakry to the Pamelap border crossing with Sierra Leone. The Kalyadi (also spelled Kaliadi)/Sambalama mineralization, which lies within the boundaries of the territory covered by the Forécariah Permits, is located close to the coast "which will facilitate the shipment of any economic iron ore discovered on the property." The recently identified Wondima/Amaraya targets (WAI release NR12-02 dated January 26th, 2012) are extensive iron bearing hematite-goethite prospects that were identified along the northern extension of the Sambalama/Kalyadi magnetic anomaly.

Iron mineralization in the Forécariah tenement consists of magnetite quartzite and hematite-goethite laterite within the Kissi Kissi Formation of the Kasila Group. These iron-bearing lithologies occur in a number of north-northwest-oriented zones in the northern, eastern and south-eastern part of the tenement. The Sambalama/Kalyadi prospect consists of 2 different iron ore anomalies - the primary target is composed of magnetite quartzite, magnetite gneiss and magnetite amphibolite from at depths between 30 metres and 150 metres. The secondary target of hematite-goethite laterite has developed over most of the lithologies on the Forécariah permit and its thickness varies from few metres on surface to a depth of up to 30 metres.

The main occurrences occur between the localities of Bambaya and Heriko, "and seem to form four to five distinct semi-continuous layers which either represent separate metamorphosed units of Banded Iron Formation, or reflect tight folding or thrust-duplication of a single extensive BIF unit."

The property known as the Forécariah tenement covered by SARG exploration permits are described in detail in a technical report (the "SRK Report") prepared by SRK Consulting (Australasia) Pty Ltd in accordance with the requirements of National Instrument 43-101 ("NI 43-101"). The SRK Report is available for review on SEDAR -@ www.sedar.com .


Permit extension

On July 4th, 2011 SARG provided to the Minister of Mines and Geology with a written request and supporting documents for the extension of both the Forécariah and the Kérouané licenses, in advance of the October 2011 renewal date for a two year extension on both tenements under the 1995 Mining Code. On September 8th, 2011 the Company received a letter from the Mines Minister stating that an extension of 3 months has been granted to SARG. On December 19th, 2011 the Company received a further letter from the Mines Minister stating that an exceptional compensatory extension of 5 months has been granted to SARG prior to first renewal.

This exceptional compensatory extension will expire on May 31st, 2012. The Company made a submission in accordance with the newly published Mining Code to the Mines Minister for the first 2 year renewal period on the Forécariah permit. Under the new Mining Code Article 20, a company exploring for iron ore and/or bauxite can only possess in its name a maximum of 3 permits with a total area of 1050 km2.

After careful review, the Company has decided that the difficult access and remoteness from the major infrastructure of the Kérouané permit will likely increase exploration costs and delay any potential development of the property in the event that an iron ore reserve were to be delineated. After a systematic campaign of ground mapping, interpretation and samples analyses during the first quarter of 2012 on the identified iron ore targets within the western boundaries of the Kérouané permit, the Company management decided to relinquish 100% of the Kérouané permit to the Republic of Guinea in order to retain our 3 Forécariah permits with a minimum of 734 km2. The Company has submitted to the Guinean Government a request to retain for the first renewal period a maximum of 3 permits and reduce its land package to 1050 km2 on the Forécariah permit.

The Company "anticipates that a formal renewal Order will be issued to SARG to grant the said renewal period of 24 months, once the newly appointed committees (as mentioned above) and the Mining Cadastre Commission have studied our proposal and in accordance with the normal decision-making process currently in place in the Republic of Guinea".


Kérouané Project

The Kérouané Project is covered by one permit under License number A2008/044/DIGM/CPDM, published as order A/2008/3723/MMG/SGG on 8th, October 2008 in the Official Journal of the Republic of Guinea. The permit is currently valid until May 31st, 2012, and is renewable for two periods of two years thereafter. The License gives SARG authorization to conduct exploration and exploit, at surface or in the subsurface, iron ore in the tenement. The Kérouané Project permit is located approximately 400km from the Forécariah iron-ore Mineral Project.

The Kérouané permit is located some 50 kilometres west of the Simandou Range, the location of Vale’s Simandou blocks 1 & 2 and Rio Tinto’s Simandou blocks 3 & 4 deposits, the latter of which is expected to come into production by 2014 (Rio Tinto Press release, 22 April 2011). Immediately adjacent to the Kérouané Project, five different companies appear to hold ground tenure for iron ore exploration.

NOVATEM completed their Technical Report on the high-resolution helicopter borne magneto metric survey of Kérouané, flown in May 2011. Full interpretation and inversions were submitted to the Company in September 2011. Novatem, helicopter borne magneto metric survey consisted of 3,071 line kilometres and limited prospect mapping and sampling work by Uranium-Logging and Consulting as well as SARG. This work has led to the identification of a 9-kilometer-long and up to 2-kilometer-wide magnetic zone, the Soromaya belt, in which field checks have confirmed the presence of BIF outcrops.

Field mapping by SRK has confirmed the presence of metamorphosed BIF along elongated ridges up to several kilometres in length and 200 metres in width within the Soromaya Belt, and the presence of additional mineralized units outside the main belt, but the data available is insufficient to define an Exploration Target Size or estimate a resource at this time.

SRK conducted reconnaissance mapping on the permit and issued in November 2011 a Technical NI43-101 Report on the Kérouané tenement based on their site visit, sample analyses, work done previously on the permit and the NOVATEM interpretation. Surface sampling of mineralized units has been limited so far, with 36 samples combining the Company samples and SRK check samples, giving an average Fe content of 39.6% Fe. The majority of those samples were collected from units within the Soromaya belt, but the data includes the smaller occurrences recorded throughout the tenement.

As stated earlier, the Company management, after careful consideration and review of all technical data available on the Kérouané permit, decided to relinquish 100% of the Kérouané permit to the Republic of Guinea in order to retain our 3 Forécariah permits and in order to respect the September 2011 Mining Code.

The property known as the Kérouané tenement covered by SARG's exploration permits are described in detail in a technical report (the "SRK Report") prepared by SRK Consulting (Australasia) Pty Ltd in accordance with the requirements of National Instrument 43-101 ("NI 43-101"). The SRK Report is available for review on SEDAR by December 2nd, 2011 at www.sedar.com


Recent Developments with respect to the Mining Code

The New Mining Code was adopted, enacted and promulgated on September 9th, 2011; the publication of the new Mining Code of the Republic of Guinea took place in the “Official Journal” in January 2012.


Notable changes from 1995 Mining Code are as follows:

- The new Mining Code now entitles the Guinean State to an overall shareholding of up to 35% in the share capital of mining companies in Guinea. Previously, that right was limited to a 15 % shareholding in the capital of companies involved in the exploitation of precious metals. This participation is divided into two parts. One is free and non-dilutive, the “National Interest”, which is fixed at 15% (in the case of bauxite, iron ore, uranium, gold and diamonds). The other is a maximum 20% “Contributing Interest”, on a fully paid basis at a price to be agreed with the investor. The published Mining Code does allow an option to reduce the right of the State to its contributing interest by increasing the applicable tax rate.

- A Mining Convention must now accompany the grant of an exploitation permit.

- Any change of control in an entity holding a mining title is now subject to approval or validation by the Ministry of Mines. This "may include the acquisition of juuuuust 5 per cent of the share capital of that entity that owns the Mining Convention."

- The new Mining Code has introduced a new provision relating to force majeure. Its legal definition excludes “economical hardship as a result of market price variations” and any act or event, which would only lead to a more onerous or difficult completion of a party’s obligation.

- Anti-bribery provisions have also been included in the new Mining Code. This includes an obligation to implement an ‘Anti-bribery surveillance plan’ and also to sign a ‘Code of Good Conduct’. The new law also contains substantial ‘transparency’ provisions. For example, a mining company and its direct subcontractor must inform the State of their corporate structure, as well as the identity of their shareholders, directors, managers and senior managerial employees.

- One other key change concerns employment and training. Now, while the principle of preference to local employees and contractors and the transfer of technology were already established in the 1995 law, the new legislation brings more strenuous obligations. This includes the imposition of specific quotas and also training obligations. For example, a Guinean national must be appointed as deputy managing director of a mining company as soon as it commences exploitation. Also, within 5 years from commencement of exploitation, a Guinean national must be appointed managing director.


The new code has created several new public bodies:

- the National Mine Committee (Commission Nationale des Mines)

- the Technical Titles Committee (Comité Technique des Titres)

- the National Directorate of Geology (Direction Nationale de la Géologie)

- the Study and Strategy Office (Bureau d’Etude et de Stratégies).


Their composition, organization and function are to be fixed by formal decrees.

The new code also refers to a mining registry (cadastre minier), which will be managed by the CPDM (Centre de Promotion et de Développement Minier). The mining registry is defined as a public register containing a list of all mining and quarry titles and their corresponding maps. ..."