re: Ann: Badondo Drilling Results Increase Ex...
Great announcement, the company looks to be sitting on some serious IO at Badondo.
Related to the Badondo area;
Core unveils transport plans for Avima
Monday, 21 October 2013 22:58
Core Mining Limited (“Core” or the “Company”) is pleased to announce that the world class Avima iron ore project in Republic of Congo is moving towards becoming a producer by 2015.
Planning is underway to implement a transport solution with a two phased approach starting with a 3mtpa trucking operation by 2015. The second phase includes a new port and rail infrastructure (PRI) via Gabon which shall allow Avima to export 35mtpa. The PRI plan shall also unlock the Gabon iron ore projects starting with the famous Belinga project which is strategically located nearby Avima.
Core is presently engaged with governments, industrial companies, EPC contractors, operators and financiers and is progressing to allow various iron ore projects in the region to produce and supply the steel makers in a cost effective manner.
The summary of the plan is as follows:
Distance to port from Avima is about 550 km.
Phase 1 – Trucking 3mtpa to a river port in Gabon, from where iron ore can be barged to Panamax vessels.
Phase 2 – Rail 35 mtpa to Port Gentil for loading Cape vessels.
The PRI can also serve additional Gabonese iron ore projects such as the well-known Belinga high grade iron ore deposit. Annual capacity of the new rail system will be approximately 100 mtpa.
“We see considerable benefit to both Gabon and Republic of Congo, not just from substantial DSO export revenue, but also from leveraging their DSO resources into infrastructure development. Road, port & rail infrastructure are critical to national development.” Core Mining said.
This plan opens up a second infrastructure route that EQX could possibly take advantage of. Check out the map shown in the link above, any road or rail from Avima will go straight past Badondo/Belinga. The first possible route is the proposed SDL rail line / port.
What I find very interesting is that stage 1 for Core will be trucking 3mtpa to a port, by 2015. I wonder if EQX could piggy-back on this operation and truck some of it's own DSO before any rail solution is built? Trucking = early cashflows and low CAPEX.
The other considerations with the exploration target massively increased now is that the tenement will be looking very attractive to Core Mining. Is there a possibility Core Mining may want to purchase the tenement from EQX to consolidate the area and access economies of scale?
Is there a possibility a strategic partner may want to do an equity deal with EQX at the company level to fund Mayoko, so that the strategic partner then also has access to any developments made at Badondo?
Very interesting times ahead.
Good luck!
EQX Price at posting:
65.5¢ Sentiment: Buy Disclosure: Held
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