Africa-focused iron-ore and manganese development company Ferrex has announced a positive maiden Joint Ore Reserves Committee-compliant resource on its 85%-owned 92 390 ha Nayenga manganese project, in northern Togo.

Ferrex believes the project, which has direct access to the major deep-water port of Lome, has the potential to be developed into a low- capital and low-operating cost openpit manganese mine in the near term. Ferrex MD Dave Reeves says: “I am delighted to report a positive maiden resource at this flagship manganese project on schedule and on budget. The resource falls within the previously stated exploration target and is a significant milestone in the development of Nayega as a low-capital expenditure manganese mine with near-term cash flow potential.
“Metallurgical testwork results are due soon, with a scoping study to begin thereafter to further prove the project’s economic viability as a simple, openpit, no-strip operation with potential for beneficiation through screening and gravity separation.”

Additionally, regional exploration around Nayega has now begun, with Ferrex geologists investigating 47 targets based on an evaluation of satellite images.

“We also remain on track to complete the feasibility study at Nayega before the end of the year and we look forward to report- ing on these developments as we take Nayega up the development curve with a view to starting production in 2013,” he concludes.

With the completion of the resource estimate and the possibility of developing a near-term operation at Nayega, the board has decided to focus the company’s attention on this project and has informed its joint venture (JV) partner, Mozambique-focused explorer Baobab Resources, that it will be withdrawing from the Changara JV, in Mozambique. Ferrex will pay Baobab $39 521 for the shortfall in expenditure committed in line with the JV agreement.