Intersuisse and an associate company has provided corporate assistance to DMC Mining Limited.
See important information (at end of report).
BACKGROUND DMM is focused on progressing the evaluation and potential development of the Mayoko (80%) iron ore project in the Republic of The Congo. The project covers 1,000 sq km and lies over the Precambrian Congo Craton. The company listed on the ASX in July 2007 as an Australian based exploration company seeking to find and develop base metal resources in both New South Wales and Western Australia. In December 2007, the company announced that it had acquired 80% of the Mayoko iron ore project located approximately 300 km north east of Pointe Noire on the west coast of Africa. The Mayoko Iron Ore Exploration Licence 7692 was granted by the Minister of Mining, The Hon Pierre Oba under the Republic of The Congo Mining Code (2005). Early geological investigations into the area were conducted under a UN sponsored program carried out during 1974-75 by the GEOMIN staff from Bucharest, Romania. The work included over 40 drill holes, assays and chemical analysis. Further exploration work has been carried out by French company Bureau De Recherches at Minieres during the 1980’s. DMM obtained the original complete report along with drilling logs, chemical assay reports, cross sections and maps. The report concluded that there was a potential i ron ore tonnage of approximately 750 million to 800 million Runge Ltd was commissioned by DMM to conduct an initial JORC resource estimate for the project based on historical data. In May 2008 the company announced an initial inferred resource estimate of 33 million tonnes of hematite enriched ore averaging 55.5% Fe, 0.1% P, 10.4% SiO2 and • GRD Minproc Scoping Study on Mayoko iron ore deposit in the Republic of The Congo indicates annual revenue potential of between US$177 million and US$308 million based on an 11 million tonnes per annum (mtpa) operation at long term prices. • The study considered an initial 3 mtpa direct shipping ore (DSO) project ramping up to 11 mtpa DSO hematite within four years. Capital cost estimates are US$198 million for the initial operation and US$486 million for the full 11 mtpa project. Operating costs are estimated at US$22.5 per tonne. • A 3 mtpa DSO magnetite plant would follow as Stage 2 giving the project longevity. • Initial Mayoko iron ore JORC resource of 33 million tonnes averaging 55.5% iron. Geological modelling has outlined a target of 110 million to 135 million tonnes of hematite enrichment at 55% to 58% iron and 750 million to 800 million tonnes magnetite at 35% to 45% iron. • Existing railway located within 5 km of project linking to deep water port at Pointe Noire and European markets. A scoping study has recently been completed by GRD Minproc. The study has outlined capital costs estimates of US$198 million and US$486 million for 3 mtpa and 11 mtpa direct shipping ore operations respectively. The study assumes that the project will ramp up from an initial 3 mtpa operation and considers a second long life stage which will treat magnetite to produce 3 mtpa of pellets. Monthly Share Turnover 1.46m shares Shares on Issue 43.3 million Listed June'09 20c options 19.1 mi l l ion Unlisted options 5.4 million Market Capitalisation $30.5 million 12 Month Price Range $0.18 - $1.18 Cash August 2008 $1.4 million Top 20 Shareholders 57.7%
Specific Disclosure relating to report on DMC Mining Limited on page 4 - PhillipCapital Pty Ltd (an associate company of Intersuisse Limited) (together “Intersuisse”) has provided corporate advice to DMC Mining Limited and Intersuisse has prepared this document for and on behalf of DMC Mining Limited. For its services Intersuisse has received $50,000
DMM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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