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EXTRA: Charter Pacific’s Aussie know-how re-works Mauritania mine
EXTRA: AUSTRALIAN Securities Exchange-listed Charter Pacific Corporation Limited’s 70 percent-owned subsidiary, Legleitat Iron Mauritanie (LIM) SA, has been granted a potential 30-year mining permit for an advanced iron ore mine in Mauritania, West Africa.
The Legleitat site is an existing open cut hematite mine adjacent to Charter Pacific’s existing leases that have been established to mine iron ore, gold and other precious metals. 
An advantage of the Legleitat site for Charter Pacific is that it has already had an estimated $45 million in preparation work performed upon it by its previous operator, including drilling, pre-stripping of the mine site, port preparation and a haul road already constructed.
Charter Pacific plans to bring its high level Australian-developed technologies and mining systems to the project, in a bid to tap into the re-emergence of high quality iron ore demand in Europe.
The hematite deposit in the Mauritania mine has been found by Charter Pacific’s advisors, Australian resources firm SRK Consulting Pty Ltd (SRK), to contain what is known as direct shipping iron ore (DSO).
“Our investment in this DSO project with near term production potential will be a company changer for Charter Pacific’s shareholders,” Charter Pacific executive chairman Kevin Dart said.
“This project complements our existing Mauritanian investments and accelerates our ability to generate significant near term value for shareholders. Rarely does such an advanced DSO iron ore project become available with infrastructure either in place or at near term availability.
“It’s also important that the cost of iron ore production in Mauritania is well below that of other ore producing markets.”
Mr Dart said the Legleitat iron ore deposit had been extensively drilled but is still open, with potential to expand the hematite resource. The mine has been under maintenance sits November 2013.
Mr Dart said there was also future potential ‘beneficiation’ of lower grade goethite iron mineralisation surrounding the hematite. The mine site itself is established, pre-strip commenced, ore mining commenced, and blasted stocks in ground, he said.
Mauritanian iron ore has been principally exported to European markets for the past 18 years and Charter Pacific believes the region will continue to be a strong market in the future.
The previous operator’s permit was not renewed by the Mauritanian Government in late 2013, due to permit conditions reportedly not being met. The Mauritanian Government published a call for expressions of interest for this permit in late December 2013 and Charter Pacific lodged a submission for the permit area early in February 2014.
Following lengthy confidential negotiations with the government, a permit was granted by decree under the provisions of the Mining Code to Charter Pacific’s subsidiary Legleitat Iron Mauritanie SA.
Legleitat Iron, a Mauritanian company, is 70 percent owned by Charter Pacific, 10 percent by WAFA Mining and Petroleum – Charter Pacific’s Mauritanian in-country partner – and 20 percent ‘free carried’ ownership by the Mauritanian Government.
The site is adjacent to Charter Pacific’s existing Exploration Permit 792 and increases Charter Pacific’s investments in Mauritania to a total footprint of 3,246sqkm for iron ore, gold and copper prospects.
The permit, but not the ore body, is traversed by the major 250km sealed highway between Nouakchott and Akjoujt. The mine site loading facility is close to the highway and the haul road to the highway is completed. Preliminary assessments by Charter Pacific indicate that the DSO product can be trucked to the Port of Nouakchott for shipping to customers.
Based on the preliminary assessments of the deposit, Charter Pacific will aim for a million tonnes per annum (Mtpa) shipped operation for more than 10 years, delivering a DSO product of 59.2 percent iron – officially CaFe grade 62.7%Fe – to potential customers in Europe, India and Asia.
Based upon due diligence material received from the Mauritanian Mines Department, Charter Pacific’s in-house preliminary estimates indicate a capital expenditure of up to US$22 million may be required to commence mining operations on the Legleitat Ore Deposit.
ends
POSTED JULY 23, 2014
