Ivindo Iron Archives - International Mining

Capital, a leading mining services company, has announced the award of a material drilling contract in Nevada with Nevada Gold Mines and associated rig purchases, together with an update on the ramp up of operations at its Ivindo iron ore contract in Gabon.

The three-year drilling services contract with Nevada Gold Mines (NGM) in the US spans a wide range of drilling services including diamond, both surface and underground, and underground reverse circulation. Drilling spans a number of operations across NGM including underground diamond drilling in the Leeville underground mine within the Carlin complex, underground RC drilling in Carlin and diamond drilling at the Robertson project within the Cortez complex.

NGM is a joint venture between Barrick (61.5% ownership) and Newmont (38.5% ownership), with Barrick as operator. NGM operates three Tier One gold assets: Carlin, Cortez and Turquoise Ridge, consisting of 10 underground mines, 12 open-pit mines and associated facilities.

The contract will consist of nine rigs and will include equipment with advancements in automation for improved safety and efficiency, Capital said.

The contract is expected to generate annualised run rate revenues of circa-$35 million once all the rigs are fully operational from 2025, at margins commensurate with the broader group, Capital said. The company will purchase new rigs with associated equipment for the contract with capital expenditure expected to be circa-$20 million, predominantly falling in 2024.

In Gabon, the company reported that ramp up of operations at its load & haul, crushing and drilling contract with Ivindo Iron SA, majority-owned by Fortescue, was proceeding well.

“We have now commenced drilling operations to assist in further defining this world-class deposit,” Capital said. “The majority of the mining equipment is now in country with operations also already underway, and crushing due to commence later in the year.”

Peter Stokes, Chief Executive Officer of Capital, said: “This new drilling contract award represents a landmark moment for Capital as we extend our geographic reach in drilling into North America, adding to our existing and growing operations in Canada with MSALABS. It is a strong endorsement of our long-standing commitment to world leading standards in both safety and productivity.

“We are pleased to further expand our services with Barrick, having begun our relationship across operations in Africa before extending more globally, first at the Reko Diq mine in Pakistan, earlier this year, and now to the Nevada Gold mines complex in the United States.

“It is also great to see a continuation of our decisive and strategic move to reposition and improve our contract portfolio, set out in the second half of 2022, focusing on large-scale mine sites and Tier-1 projects with significant growth potential. The addition of world-class contracts in 2023 across Reko Diq, Ivindo and now Nevada presents significant further opportunity and a strong platform as we look into 2024.”

Fortescue Metals Group, through its incorporated JV company Ivindo Iron SA, has signed the Mining Convention for the Belinga iron ore project in Gabon with the Gabonese Republic, paving the way for first mining to begin in the second half of 2023.

This will open growth opportunities for Fortescue Metals and Fortescue Future Industries throughout Africa, according to the ASX-listed company.

The Mining Convention governs all the legal, fiscal and regulatory regimes for the 4,500 sq.km, which comprises the Belinga project, including early development for production of up to 2 Mt/y, while studies advance potential designs of a large-scale development.

Fortescue Founder and Executive Chairman, Dr Andrew Forrest, said: “The Gabonese Republic chose Fortescue to develop Belinga not only due to our strong track record of delivering major projects, but due also to our company-wide commitment to use our major industrial scale and expertise to assist heavy industry combat climate change.

“Geological mapping and sampling programs have confirmed our initial thoughts that this new West African iron ore hub may well one day prove to be among the largest in the world. The key aspect of this particular geology is its potential to dovetail with Fortescue Pilbara ore
blends. In doing so it will preserve and enhance the iron ore industry of both Australia and Gabon.

“We have enjoyed strong support and positive feedback from local communities. We will continue to work together to maintain Fortescue’s highest standards of environmental and community consultation.”

The capital estimate for the early stage mining development is approximately $200 million (100% basis) with investment over 2023-24. The development involves conventional open-pit mining methods to produce the ore which will be trucked and railed over existing roads and rail infrastructure, and will be shipped from the Owendo Mineral Port, near Libreville.

Ivindo Iron is the operating entity for Belinga. It is held 90% by the Belinga JV company, established by Fortescue (80% interest) and its joint venture partner, the Africa Transformation and Industrialization Fund (20%). In accordance with the Gabon Mining Code, the Gabon Government will have a free carry interest of 10% in Ivindo Iron.

The Belinga deposit was initially discovered in 1955, and subsequent exploration in the 1970s identified high iron and low contaminant mineralisation. The deposit sits in Archean aged rocks of the Congo Craton. The lithology and structure are typical of other greenstone belts that commonly host banded iron formations and itabirites found in other parts of West Africa such as the Simandou project, Fortescue says. The Belinga geology and iron ore potential is similar in scale as Simandou in its early stages of exploration, with its multi-billion tonne potential and high grades, the company added.

Belinga has been progressively assessed by Fortescue since 2018.

Capital books ~$35 million drilling services contract with Nevada Gold Mines

Fortescue signs Mining Convention for Belinga, paving way for first mining in H2 2023