DFS for Ferrex’s Nayega Manganese Project Nearing Completion

Ferrex plc (LSE:FRX) released a strategic update on its Nayega manganese project, commenting that it plans to initiate a two-phased approach to its development.

As quoted in the press release:

The first phase is focussed on developing a low-cost 250,000 tonnes per annum, 38% marketable manganese product open-pit mine in the near-term, and the Company provides an update in respect to the Definitive Feasibility Study (‘DFS’) below. Phase two will see the Company develop an in-country smelting facility to produce a valuable High Carbon (‘HC’) Ferromanagnese alloy in Togo in the medium-term.

Dave Reeves, managing director of Ferrex, commented:

The DFS for the Nayega 250,000tpa manganese project is now nearing completion with finalisation of the technical aspects due in the next eight weeks. With the submission of the Environmental Permit Application and the completion of the associated on site workshop, it is anticipated that the Environmental Permit will be granted in early Q4 2014. The Ministry of Mines and Enrgy has stated that the government has hired a consultant to assist in the drafting and preparation of the mining permit and associated fiscal terms and that it anticipates that the Company will soon be invited to commence discussions on the proposed terms. On successful conclusion of these negotiations, the permit must then pass through all appropriate signatories and reviews in government before final sign off is obtained. We are informed that the timing on this process should be complete during Q4 of this year. This will be a major milestone in the development of Nayega and we thank the Ministries involved for their support and guidance to date.

Click here to read the full Ferrex plc (LSE:FRX) press release.