By: Sashnee Moodley 13th July 2012 TEXT SIZE The drilling programme for exploration company Energio’s Agbaja Plateau iron-ore project, in Nigeria, should be completed this month, subject to favourable weather conditions, says CEO Tom Revy.
Following the drilling programme, major metallurgical and study work will be conducted to ensure an economic outcome for the project.
The drilling programme has 760 exploration holes, of which 550 have been drilled, equalling 20 000 m.
An initial analysis of reverse circulation samples revealed some iron content assays in excess of 55%.
“Agbaja has the potential to be a world-class project with a conceptual target of one-billion to two-billion tons of iron-ore. The company is working towards defining a maiden Joint Ore Reserves Committee-compliant resource in the third quarter of 2012, with an initial conceptual target of 400-million tons to 500-million tons from an exploration footprint covering only 10% of the lease area,” reveals Revy.
Energio has established good relationships with the local communities surrounding the project area and the local permitting has been secured for the company’s exploration.
More than 40 locals have also been employed by Energio to work on the project as geologists and field hands, and in administrative roles within its local office, in Lokoja, directly adjacent to the Agbaja project area.
Revy states that the project has strong support from local leaders. The Nigerian government is helpful and encouraging, as it believes the project will aid the development of the country’s resources sector and, in turn, will be a major part of Nigeria’s industry diversification programme.
Further, he says the government realises that the project will contribute to industry development, while also providing other social benefits, such as youth development and local employment.
The project was identified about six years ago as a potential large-scale iron-ore project by a small group of local investors, which also included one of the current directors of Energio. Between A$10-million and A$12-million has been spent on the project over the years.
Revy says, although no new technologies have been introduced to the project to date, the project may use novel processing techniques during metallurgical testwork, but they will only be known in the first quarter of 2013.
Meanwhile, Energio has engaged consultants as part of an early-stage review of the project, which is about 40% complete.
The company is not pursuing other projects at present, as it believes the Agbaja project is a potential world-class development that will require Energio’s full focus.
Mining Education Needed To attract future generations of mining professionals, edu-cation about the mining industry is needed and should be introduced to learners at an early stage during their education, says Revy
He notes that the mining industry is perceived as less attractive than so-called white-collar industries such as law, accounting and medical science.
As a result of the lack of interest, there is a lack of skills and experienced personnel in the industry. Further, he says there is also a lack of experienced expatriates who are willing to spend time in Africa.
“There is often increased risk associated with doing business in African countries, including Nigeria. This has staffing and financing implications. But, while Nigeria has much potential, the country has a long way to go in terms of developing a sustainable mining industry,” Revy explains.
However, the Nigeria government has been inviting companies to review opportunities in the country, while amendments to the mining laws and regulations reflect strong similarities to established Western practices, which, in turn, attract companies. The government has also discussed tax incentives for interested foreign companies to develop projects in the country, he notes.
Edited by: Tracy Hancock
EIO Price at posting:
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