LONDON (Alliance News) - Sable Mining Africa Ltd Thursday said it has finished drilling at its Nimba iron ore project in Guinea, with its bankable feasibility study due in the first half of 2015.
Sable shares shot up 48% to 1.92 pence per share on the news Thursday morning.
The Nimba direct shipping ore project has a current resource of 181.8 million tonnes at 58.8% iron and a maiden reserve of 53.96 million tonnes at 61.6% iron. Direct-shipping iron ore deposits contain high quantities of hematite or magnetite, and are generally in the 62-64% iron range.
With the original planned drilling programme finished there is currently no activity on site, and the company is not experiencing any delays as a result of the current Ebola outbreak in West Africa, it said in a statement.
A bankable feasibility study for Nimba is due in the first half of 2015, which is fully funded as the company reported a cash balance of USD11.3 million. Sable has no debt and is funded through until 2016 and has no requirements to raise any capital in the short term, said Sable.
"Nimba continues to stack up as an asset with the potential to generate considerable value for shareholders even in periods of depressed iron ore prices. The company has been effected by the negative sentiment around iron ore yet it has significant differentiators to its peers," said Chief Executive Andrew Groves.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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