Modern Mining September 2019

MINING News

HPX acquires West African iron ore project

ees and contractors are Guinean nationals and the project’s recruitment and training programme will continue to give priority to qualified Guineans for senior management and professional roles. “As a catalyst of sustainable economic development in Lola Prefecture and in the greater Forestière region, the mine will ensure long-term protection for the nearby Mount Nimba Strict Nature Reserve. We are acutely aware of the importance of this world heritage area and are fully commit- ted to preserve its unique features and to implement the Nimba project in a way that is a model for responsible sustainable development.” Subject to all necessary approvals, HPX is planning to bring a starter mine of one to five million tonnes per year into production as quickly as possible while feasibility studies are being completed for an expanded operation of at least 20 mil- lion tonnes per year. The Government of Guinea and HPX have agreed on terms for the updated Nimba Mining Convention, including a 15 % free-carried government interest in SMFG, as well as tax and royalty arrangements and a development timetable. Further to a news release by Ivanhoe Mines earlier this year announcing the pro- vision of a secured loan facility for HPX and an agreement for mutual technical support and collaboration, Ivanhoe has commit- ted to commence negotiations to provide technical support to the Nimba project. Such support would be provided on an arms-length, cost-recovery basis. Ivanhoe is a Canadian mining company focused on advancing its three principal projects in Southern Africa.  advancement of the Khemisset project with ever increasing confidence in our technical and economic outcomes, culminating in the release of our Feasibility Study in the first half of 2020. “We look forward to releasing an updated Mineral Resource Estimate, with a significant proportion within the measured and indicated resource categories. This Mineral Resource Estimate will form an inte- gral part of our on-going Feasibility Study. We continue to believe the results of this study will confirm our belief that Khemisset has the potential to be a low capital cost, high margin potash development, which generates strong cash flows regardless of fluctuations in potash price.” 

Eric Finlayson, President of High Power Exploration Inc (HPX), announced at a sign- ing ceremony held recently in Conakry that HPX had received consent from the Government of the Republic of Guinea to acquire the 95 % interest in the Nimba iron ore deposit held by BHP, Newmont Gold and Orano (formerly Areva, the French gov- ernment nuclear utility). The ceremony was attended by Alpha Condé, President of the Republic of Guinea, and Kgalema Motlanthe, the former President of South Africa. Finlayson also announced that Motlan­ the and Guy de Selliers de Moranville had agreed to become Co-Chairmen of the HPX subsidiary that will hold the Nimba asset and both have joined the board of Société des Mines de Fer de Guinée (SMFG), the Guinean company operating the project. HPX is a privately-owned, US-domiciled mineral exploration and development company with an operating office in Vancouver, Canada. Its board and manage- ment team are led by Chairman and Chief

Executive Officer Robert Friedland (who is also Executive Co-Chairman of Ivanhoe Mines); Co-Chairman Egizio Bianchini, for- mer Co-Head of the BMO Global Metals & Mining Group and Vice Chairman of BMO Capital Markets; and Finlayson, a former head of exploration at Rio Tinto. In a 2015 review completed by the United States Geological Survey, the Nimba deposit, which is located in the Forestière region of south-eastern Guinea, is esti- mated to comprise around a billion tonnes of high-grade iron ore containing very low levels of impurities. “With local procurement of goods and services, local recruitment and training of the work-force, the upgrading of transport routes and infrastructure, and the resulting economic multiplier effects, we anticipate that major social and economic benefits will flow from the Nimba mine,” Finlayson commented. “As President Condé expects, more than 95 % of the project’s current employ-

Exploration camp at the Nimba iron ore project in Guinea.

Infill drilling programme at Khemisset completed Emmerson reports completion of the infill drilling programme at its 100 %-owned Khemisset potash project in Northern Morocco.

completed within the timelines set by the company and under the allocated budget. Final geochemical assays are expected shortly, which will allow an updated geo- logical model and JORC Mineral Resource Estimate to be completed prior to the end of October 2019. Hayden Locke, Chief Executive Officer of Emmerson, commented: “The completion of our drilling programme on time and under budget, and with excellent core recovery, is a major milestone for Emmerson and a credit to our fantastic geological team. “The detailed information from the drill programme will enable the continued rapid

The programme, undertaken by Drillon, consisted of nine holes and successfully achieved its objectives of providing addi- tional geological information in the area most likely to be the target of initial mining opera- tions. In addition, it has provided enough sample material to allow completion of a comprehensive metallurgical test work pro- gramme and detailed geotechnical testing. The entire drilling programme was

10  MODERN MINING  September 2019