Kazax Announces Initial Resource Estimate of Lomonosovsky Iron Magnetite Project
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan 14, 2013) - Kazax Minerals Inc. (TSX VENTURE:KZX) -
Measured and Indicated Resources - 333.5 Million Tonnes Grading 36.6% Total Iron
Inferred Resources - 108.7 Million Tonnes Grading 34.8% Total Iron
The mineralisation remains open at depth and along the lateral extents
Kazax Minerals Inc. ("Kazax" or the "Company") is pleased to announce that its independent Qualified Person (the "QP"), Mr. Andrew Vigar of Mining Associates (MA) based in Hong Kong, has issued a National Instrument 43-101 compliant technical report on the Company''s Lomonosovsky Project entitled "Independent Technical Report on the Lomonosovsky Iron Project, Republic of Kazakhstan" (the "Report").
A full copy of the report is available under the Company''s profile at www.sedar.com and on and Kazax''s website; the highlights of the report are;
The Report provides a resource estimate for the Lomonosovsky Project as at December 2012 stands as outlined below, above a cut-off grade of 20% Fe:
Mineral Resource Estimate for Combined Lomonosovsky, | |||||
Class | M Tonnes | Fe % | P % | S % | FeM % |
Measured | 7.6 | 29.8 | 0.5 | 3.3 | 19.7 |
Indicated | 325.9 | 36.76 | 0.2 | 3.5 | 27.8 |
Measured & Indicated | 333.5 | 36.6 | 0.2 | 3.5 | 27.6 |
Inferred | 108.7 | 34.8 | 0.3 | 4.5 | 25.9 |
This is comparable to the 1984 historical estimate, which was classified and certified under the Kazakhstan classification system at the time as C1 of 250MT, (CIM equivalent Measured and Indicated) and C2 of 82MT, (CIM equivalent Inferred), with a 20% cut off grade and an average Fe of 34.2% (IMC Montan 2010). The new estimate represents a tonnage increase of 33.5%, Measured and Indicated and 32.5%, Inferred.
The Lomonosovsky Iron Project is located in the northwest corner of the Republic of Kazakhstan in the Kostanay Region, 618km northwest of the country''s capital of Astana and 50 west-southwest of the regional capital of Kostanay. The Project is located close to the town of Rudnyi and existing significant iron mining-processing operations. The area has considerable industrial infrastructure.
The Lomonosovsky Project has been subject to various geophysical and drilling surveys from 1951 through to 1984 during, which time several mineral resource estimates were conducted.
Some 412 diamond drill holes for a total meterage drilled of 131,441m were recorded in the database for the Contract area prior to the current drilling, of which 190 drill holes were angled holes.
A further twenty two (22) drill holes have been completed in 2012 for a total of 9,049m, selected and supervised by MA and assayed by Kazax to validate the historical drilling and for this resource estimate.
It is MA''s opinion that the 1984 historical mineral resource estimates have been largely verified by the new drilling and estimates and are quoted to here to provide context only.
The mineralisation domains were defined by 3D wireframes using drill assay data and geology logs and grades and mineralisation percentages estimated by Ordinary Kriging into blocks 20x20x10m in size.
The Report concludes that the Lomonosovsky Project contains significant magnetite iron mineralisation in 2 deposits comprised of 5 adjacent domains which have similar geological settings to the nearby operating magnetite iron ore open pit and underground mines in the Rudnyi region.
Historical work to date has outlined skarn iron mineralisation at the NW Deposit and the Central Deposit beneath 100m of overburden and extending to 1600m depth in the NW Deposit, and some 900m at Central. The latest round of drilling consisting of twenty two (22) drill holes totalling 9,049m has allowed for confirmation of the historical drilling and for the deposit to be better understood and extended in area leading to this resource estimate but still remains open at depth and in the poorly drilled and structurally complex region between the NW and Central deposits.
While there have been a number of metallurgical programs through the history of the project, further metallurgical testing will be required regardless of the historical metallurgical results. MA notes the presence of significant hematite as well as magnetite at several locations and this will need to be taken into account in the plant design. A metallurgical program is currently being undertaken by Kazax with results expected in 2013 Q2.
MA notes in the Report that the Lomonosovsky Project has a very favourable location due to its proximity to transportation routes, and sources of water, gas, and power supply which have been established with the regional mining complex based in Rudnyi. This may allow a reduction in capital expenditure and may reduce the cost of production if the project proceeds to development through the use of shared infrastructure.
The QP makes the following observations and conclusions regarding the Lomonosovsky Project in the Report:
Significant skarn type iron mineralization exists at the Lomonosovsky Project.
The Lomonosovsky Project has a very favourable location due to its proximity to transportation routes and infrastructure.
The historical drill-holes have been validated by a current drilling program and close examination of the statistics between old and current drilling has deemed that the historical holes are suitable to be included in this resource estimate.
The techniques applied in the sampling, logging and storing of core are deemed appropriate QA/QC procedures and standards.
The ore deposit remains open at depth and along the lateral extents in certain areas as well as being under-drilled in the mid portion between the NW and Central deposits.
Selective sampling within mineralized zones has required a weighting factor to be applied to the estimation model; future drilling should be fully sampled within the interpreted mineralised zone to fill in these gaps and allow estimation of the waste as well as ore.
Following a more rigorous and reliable testing of density, a calculated density has been applied to iron bearing blocks within the block model rather than fixed values as in the past.
Mr. David Savage, President and CEO of Kazax, said, "The Independent Technical Report prepared by the QP, Mining Associates, confirms and enhances resource and viability of the Lomonosovsky Project. The Measured and Indicated resource has increased by more than 30% from the December 19, 2011 National Instrument 43-101 compliant technical report on the Lomonosovsky Project previously prepared by MA for the Company, a copy of which is available at www.sedar.com. This combined with the strong progress the team has made towards completing a Feasibility Study and completing the processes to give us the approvals to commence operations at the mine site keeps Kazax very steady on its path to meeting all of its objectives. The project looks quite exciting and we have had positive discussions with offtakers. We remain committed to achieving our objectives of commencing operations in mid-2013, provided all approvals within Kazakhstan remain on track."
Mr. Andrew Vigar, BCppSc, FAusIMM, MSEG, of Mining Associates Limited is a Qualified Person as defined by National Instrument 43-101and has supervised the approved of the scientific and technical information in this news release.
Project Status
The project team continues to progress the feasibility study. The milestones to submit the applications for the registration of the state reserve and the approval to start pre-strip and mining operations remains on target for the first quarter of 2013. Start-up of the pre-stripping operation remains on target for the middle of 2013.
A further drilling program is being initiated to enhance the resource status and measurement. Detailed mine planning continues along with engineering on the beneficiation plant.
Initial discussions with Chinese, Kazakh and Russian Mills have commenced; with detailed commercial discussions planned for the first quarter of 2013.
Management Changes
Kazax is pleased to advise that several management changes have been made with a view to the project entering its final feasibility, financing and pre-start phase. Steve Rodgers, formerly the CEO of Kazax has stepped back to an advisory role due to other commitments and David Savage, currently Chairman and President of Kazax, will assume the CEO responsibilities. Kevin Morris, formerly CFO, has stepped down and Brian Egan will assume the role of CFO. Mr. Egan, a Chartered Accountant with more than 25 years of senior finance experience in large multinational organisations related to Mining, will be a strong addition to the Kazax executive. Mr. Egan has extensive experience in raising funding for mining projects, particularly in Russia and the CIS. Mr. Egan was formerly CFO of Petropavlovsk PLC and Aricom Plc. Chris Rowe, currently heading the in country project team in Kazakhstan, has been appointed as Kazax Country Manager for Kazakhstan and will lead the in country team through the final feasibility and start up stages of the project.
With Mr. Savage assuming the President and CEO role, he will step down as Chairman of Kazax and Daniel Kunz, currently an Independent Director of Kazax will assume the role of Non-Executive Chairman of the Kazax Board of Directors. Mr. Kunz has more than 30 years of mining experience. Mr. Kunz was previously the President and Chief Operating Officer of Ivanhoe Mines Ltd and brings a strong source of mine development knowledge to the board.
These changes have all been made with a view to prepare the project for commencement of operations.
About the Company
Kazax Minerals Inc. is a mining exploration and development company focusing on iron ore. Other world-wide target acquisitions are being sought. Kazax aims to be a significant mid-tier international mine exploration and development company in the iron ore sector.
For additional information readers are invited to review additional corporate and property information available on SEDAR at www.sedar.com.
ON BEHALF OF THE BOARD
David Savage, President and CEO
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "schedule", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward looking statements and information concerning the Company s future operations and prospects. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions concerning equipment and crew availability, and joint venture partner financial capability. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because the Company can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the Company''s actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, reservoir performance, labour, equipment and material costs, access to capital markets, interest and currency exchange rates, and political and economic conditions. Additional information on these and other factors is available in continuous disclosure materials filed by the Company with Canadian securities regulators. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. The Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
