Genmin unveils maiden resource for Bandjougoy prospect which grows Baniaka global estimate 168%
Genmin’s Baniaka project has an initial iron ore resource of 152Mt.
Genmin (ASX: GEN) has unveiled a maiden resource for the Bandjougoy prospect within its Baniaka project in central west Africa’s Republic of Gabon, which brings global resources for the project to 700 million tonnes of contained iron ore.
The total inferred oxide and primary mineral maiden resource estimate for Bandjougoy now totals 436Mt of contained iron ore grading 34.8% iron.
With the addition of Bandjougoy’s maiden resource, Baniaka global mineral resources have risen 168% to 700Mt grading 40% iron.
Genmin noted “significant upside” remained to increase resources further across Baniaka.
Largest resource in Gabon
Genmin managing director and chief executive officer Joe Ariti said with 700Mt in contained iron ore, Baniaka now hosted the largest resource of any project in Gabon across all commodities.
“We are starting to build a substantial magnetite inventory, which has significant intrinsic value with our locked-in, renewable, low-cost hydropower supply and increasing market demand for high-grade pellets to support decarbonisation of the iron making process,” Mr Ariti said.
“As we saw a few weeks ago, immediately north of Gabon, in Cameroon, and within 200km of our Minvoul/Bitam project, Sinosteel committed more than US$700 million to develop its Lobe (Mamelles) magnetite project to produce 4Mt per annum of concentrate.”
Mr Ariti pointed out this shows two narratives – the increasing importance of magnetite, and China’s policy of securing supplies from Africa.
Baniaka iron ore project
Baniaka covers 881 square kilometres of ground in southeast Gabon and hosts 12 major prospects.
A pre-feasibility study is underway to evaluate a bulk open pit mining operation at the project, which would produce about 5Mtpa of iron ore products.
The study is also looking at expanding this to 10Mtpa.
Genmin has already secured three offtake agreements for the project, which account for about 6Mtpa of iron ore over two-to-three years.
One of the offtake agreements is with China’s second largest privately-owned iron and steel maker Jianlong, which will purchase 1.5Mtpa of fines from the project and a further 500,000tpa of lump over two years.