Severstal’s Putu Venture More Than Doubles Iron Ore Resource to 2.4 Billion Tonnes
02/09/2011 - OAO Severstal reports that an independent mineral resource report has estimated a doubling in natural resources at its Putu iron ore project in Liberia to 2.4 billion tonnes.
OAO Severstal reports that an independent mineral resource report has estimated a doubling in natural resources at its Putu iron ore project in Liberia to 2.4 billion tonnes. Severstal is the majority stakeholder in the project with a 61.5% interest and African Aura has the remaining 38.5%.
The mineral resource NI 43−101 compliant report issued by independent engineers SRK Consulting has estimated a total of 2.37 billion tonnes of iron ore in the existing pit at Putu, with an estimated 34% iron concentration. SRK also identified the potential for an additional 1 billion tonnes to 2.5 billion tonnes of iron ore below the project’s existing pit shell.
“Increased resource at Putu allows us to go forward in preparing feasibility study and building a sizeable iron ore complex in Liberia,” commented Boris Granovsky, Head of Strategy for Severstal Resources.
The Putu iron ore project is a 13 km long iron-rich ridge, located 130 km inland from the deep-water shoreline of eastern Liberia. A Mineral Development Agreement detailing the fiscal and legal terms for the development and mining of the Putu iron ore deposit was granted and ratified by the Government of Liberia on September 9, 2010. The Agreement term is for a period of 25 years and this can be extended further in line with the life of the mine.
The project is being advanced in joint venture with African Aura Mining Inc. Severstal has held a 61.5% interest in the project since 2008 following the investment of $30 million into the pre-feasibility study. Severstal also holds a 2.91% interest in African Aura.
