Simandou South
In December 2007, BSGR Guinea signed drilling contracts with Foraco and Geoprospects and the first recognisance drilling programme commenced in Simandou North in January 2008. A total of 1,000 metres of drilling was completed in Simandou North but results were not promising in terms of hematite deposits that could produce Direct Shipping Ore ("DSO").
Whilst drilling progressed in Simandou North, further interpretation of the results from the Fugro airborne geophysical survey, completed during the period April and May 2007, for Simandou South and field mapping in Simandou South led to the identification, in March 2008, of a potential iron ore deposit near the village of Zogota, hitherto unbeknown. Due to the less than favourable results in Simandou North, BSGR Guinea focused all its exploration efforts on Simandou South and commenced its next drilling campaign (on Zogota) in June 2008.
Initially, three target areas were identified based on the interpretation of the Fugro results: View map
1. Zogota, a 10 km mountain range near the village of Zogota;
2. Koni, a smaller target to north of Zogota; and
3. Brikoidou, a medium size target nearest to the known Simandou Range
Drilling results for Koni and Brikoidou were far less promising and the decision was made to focus only on Zogota. As the results for Zogota were very promising, drilling activities were increased and by May 2009 some 13,300 metres were drilled and over 12,000 samples were sent to the SGS laboratories in South Africa for analysis. All exploration activities are supported by a second base camp in N'Zerekore and a large field camp in the vicinity of Zogota.
A Definitive Feasibility Study ("DFS") for Zogota is scheduled for completion by the end of 2009 but not later than during the first quarter of 2010. The aim is to start production from Zogota in 2012 ramping up to 25 million tonnes per annum of product.
Details of the various aspects of the DFS can be found by navigating the buttons on this page, which will be updated on a regular basis.
