TIDMTXR
RNS Number : 6703B
Titanium Resources Group Ltd
22 February 2011
Titanium Resources Group Announces Initial JORC-Compliant
Measured and Indicated Resources at its World-Class Sierra Rutile
Mine
Rare Earths Mineralisation Identified in Sierra Rutile
Tailings
22 February 2011: Titanium Resources Group Ltd ("TRG") is
pleased to announce, as a result of its ongoing strategic review
process, a JORC-compliant Mineral Resource for its subsidiary
Sierra Rutile Ltd ("Sierra Rutile") and the identification of
potentially value-enhancing rare earths mineralisation in the
Sierra Rutile tailings. The Mineral Resource estimate of
approximately 600 million tonnes confirms Sierra Rutile's standing
as one of the largest natural rutile deposits in the world. Natural
rutile is a premium form of titanium dioxide which trades at an
approximate 20% premium to synthetic rutile and at a price 5-7
times that of ilmenite(1) .
A summary of the Mineral Resource estimate is presented in the
table below:
January 2011 Sierra Rutile Mineral Resource* (0.8% rutile
cut-off grade)
Tonnes Grade (%) Contained Tonnes (kt)
========= ====================================== ======================================
Heavy Heavy
Classification Millions Minerals Rutile Ilmenite Zircon Minerals Rutile Ilmenite Zircon
================ ========= ========= ======= ========= ======= ========= ======= ========= =======
Measured 4.4 2.30 1.13 0.42 0.18 102 50 19 8
Indicated 436.6 6.18 1.42 0.74 0.32 26,992 6,204 3,242 1,377
================ ========= ========= ======= ========= ======= ========= ======= ========= =======
Measured &
Indicated 441.0 6.14 1.42 0.74 0.31 27,095 6,254 3,260 1,385
================ ========= ========= ======= ========= ======= ========= ======= ========= =======
Inferred^ 163.9 - 0.96 - - - 1,575 - -
================ ========= ========= ======= ========= ======= ========= ======= ========= =======
Total Measured,
Indicated
and Inferred 604.9 27,095 7,829 3,260 1,385
================ ========= ========= ======= ========= ======= ========= ======= ========= =======
*Mineral Resources include those resources which have been
modified to produce the Ore Reserves. The figures reported
represent 100% of the Mineral Resources and Ore Reserves
attributable to Sierra Rutile Limited. ^ Insufficient historical
data was available to provide a JORC compliant Heavy Mineral,
ilmenite and zircon grade estimate
The quoted Mineral Resource includes all resources intended for
conversion to Ore Reserves. Given the size and quality of the
Sierra Rutile asset, the company is presently reviewing several
options to substantially increase production at the mine and
intends to release an updated Ore Reserve statement and associated
expansion plans on completion of these studies. These expansion
plans will be designed to take advantage of this world-class asset
and the significant positive market fundamentals for premium heavy
minerals products such as natural rutile.
Rare Earths
As part of management's strategic review, and an added benefit
of preparing the Mineral Resource, TRG identified the presence of
significant rare earth mineralisation in the tailings of the
mineral separation plant. These tailings, which have stockpiled
over more than 30 years of operations, have the potential to add
significant value to TRG. Studies are ongoing to quantify the type,
extent and commercial potential of the mineralisation.
John Sisay, Chief Executive Officer of TRG, commented:
"As part of the ongoing strategic review, TRG is pleased to
confirm a substantial 600 million tonnes Mineral Resource at Sierra
Rutile, making it one of the largest natural rutile deposits in the
world with an in-situ value, at current market prices, of almost
US$8 billion. We will be working methodically over the coming
months to evaluate a number of options available to expand
production and derive maximum value from this substantial resource.
Additionally, whilst early stage, the identification of rare earths
in the tailings stockpiles that have been produced in the more than
30 years Sierra Rutile has been operating is potentially very
positive for TRG's shareholders."
Additional Information
At a 0.8 per cent Rutile cut-off grade, the Mineral Resources
are contained within 2 primary mining licence areas covering
approximately 490km(2) , with a further 5 satellite deposits over
an area of 69 km(2) . The orebody is up to 25 metres thick and
comprises of sediments mineralised from surface to the underlying
bedrock.
The mineral resource estimation was derived from an extensive
geological drillhole database that has been verified by two
separate and independent geological consultants Mine Development
Associates and ACA Howe International. Geological sampling has been
conducted using a combination of recognised heavy mineral drilling
techniques, namely augering and aircore methods. Drill spacing
varies between 30m x 30m for Measured Resources to grid spacing of
above 300m x 300m for Inferred Resources.
Further details of the resource modelling is available from the
company's website www.titaniumresources.com.
ENDS
The information in this report has been reviewed and approved
for release by Mr Mark Button, NHDip, MMRM, Pr.Sci.Nat., SACNASP
who has 25 years' experience in mineral commodities, of which 15
years is specific to mineral resource estimation, and who is the
full-time Chief Operating Officer of SRL. Mr Button has sufficient
experience in relation to the style of mineralisation and type of
deposit under consideration to qualify as a Competent Person as
defined in the 2004 Edition of the "Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves". Mr
Button has consented to inclusion of this information in the form
and context in which it appears.
An 'Ore Reserve' is the economically mineable part of a Measured
and/or Indicated Mineral Resource. It includes diluting materials
and allowances for losses, which may occur when the material is
mined. Appropriate assessments and studies have been carried out,
and include consideration of and modification by realistically
assumed mining, metallurgical, economic, marketing, legal,
environmental, social and governmental factors. These assessments
demonstrate at the time of reporting that extraction could
reasonably be justified.
A 'Mineral Resource' is a concentration or occurrence of
material of intrinsic economic interest in or on the Earth's crust
in such form, quality and quantity that there are reasonable
prospects for eventual economic extraction. The location, quantity,
grade, geological characteristics and continuity of a Mineral
Resource are known, estimated or interpreted from specific
geological evidence and knowledge. Mineral Resources are
sub-divided, in order of increasing geological confidence, into
Inferred, Indicated and Measured categories.
A 'Measured Mineral Resource' is that part of a Mineral Resource
for which tonnage, densities, shape, physical characteristics,
grade and mineral content can be estimated with a high level of
confidence. It is based on detailed and reliable exploration,
sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits,
workings and drill holes. The locations are spaced closely enough
to confirm geological and grade continuity.
An 'Indicated Mineral Resource' is that part of a Mineral
Resource for which tonnage, densities, shape, physical
characteristics, grade and mineral content can be estimated with a
reasonable level of confidence. It is based on exploration,
sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits,
workings and drill holes. The locations are too widely or
inappropriately spaced to confirm geological and/or grade
continuity but are spaced closely enough for continuity to be
assumed.
An 'Inferred Mineral Resource' is that part of a Mineral
Resource for which tonnage, grade and mineral content can be
estimated with a low level of confidence. It is inferred from
geological evidence and assumed but not verified geological and/or
grade continuity. It is based on information gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes which may be limited or of uncertain
quality and reliability.
For further information:
Titanium Resources Group Ltd.
John Sisay, Chief Executive Officer
Telephone: +44 (0) 20 7321 0000
Arbuthnot Securities
Nominated Advisor & Broker
Hugh Field / Richard Johnson
Telephone: +44 (0) 20 7012 2000
Aura Financial
Andy Mills / Harry Cameron
Telephone: +44 (0) 20 7321 0000
Titanium Resources Group
Titanium Resources Group is a mining company with operations in
the Republic of Sierra Leone. The Group is the country's largest
private sector employer and produces rutile, zircon and ilmenite
for use in industrial applications. The Group's operations have
historically accounted for over 65 per cent of the exports of
Sierra Leone. The Company will change its name to Sierra Rutile
Limited on or around 28 February 2011.
Background
The Sierra Rutile properties are located near the Imperi Hills
on the coastal plain of southern Sierra Leone, approximately 135 km
southeast of the capital Freetown. The bulk of the deposits occur
in two clusters in the Gbangbama hills area; ML011/72, the Area One
deposits, and the Sembehun area, (ML15/72). The deposits are
proximal alluvial placers in origin, infilling north-easterly (and
north-westerly) trending channels incised during the imposition of
the secondary drainage system. The primary source of the rutile is
derived from the gneisses of the Kasila Group, which underwent
mechanical and chemical degradation to kaolinite and other clay
minerals, liberating the rutile and other heavy minerals.
(1) TZMI Dec 2010
This information is provided by RNS
The company news service from the London Stock Exchange
END
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