sdl to announce mbalam partner next 3 months, page-4

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***MINING INDABA 2009: Sundance to announce Mbalam partner in next three months

12 February 2009 13:55

Australia-listed iron ore explorer Sundance Resources, with operations in Cameroon, plans to announce a strategic partner within the next three months to help develop its $3 billion Mbalam project in the southeast of the country.

Mbalam, with an inferred resource of 2.4 billion tonnes of ore of itabirite and DSO quality hematite ore, has the potential to support production at 35-50 million tpy of high quality ore for 20 years, which would make it one of the biggest iron ore projects in Africa.

“We’re not concerned about the current economic conditions. We will endeavour to get the best terms, but we want to progress with the project,” ceo Don Lewis said at the Mining Indaba in Cape Town. Finance for the project is only expected to be finalised towards year-end, according to Sundance’s timeline.

Sundance had cash reserves of A$19 million ($12.3 million) at the end of December, and said its exploration and development expenditure has been significantly reduced following the completion of drilling activities on site.

Lewis said numerous companies have expressed an interest in becoming involved, and the ideal partner would be able to offer offtake agreements and construction capabilities. The ideal situation would be an equal joint venture which includes Sundance, with operating experience in the country, Lewis said.

The Mbalam deposit is located 485 kilometres inland, and will require a railway line or slurry pipeline and deepwater port to be developed.

“Major infrastructure requirements are not uncommon in the iron ore industry. Any of the new major iron ore projects are looking at infrastructure on this scale,” Lewis said.

Mbalam is being developed by CamIron SA. Sundance owns 90% of CamIron, with the remainder being held by Cameroonian investors. The Australian junior also controls an extensive area in the Republic of Congo immediately south of Mbalam