2009-11-12 08:07:06 -
London, November , 12, 2009
* Admission to AIM and placing of 37 million existing shares
* Dispute resolved with African Minerals and Government of Sierra
Leone
* Wadi Sawawin feasibility study on track
* 3,600m drilling programme at Isua complete
* MOU signed with other operators on CGMR enlarged licence area
* Cash of USD230 million at 30 September 2009
Aim Admission
On 2 November London Mining announced 37,239,225 existing shares had
been placed at GBP1.924/share with new investors ahead of admission
to AIM. Trading of London Mining shares commenced on 6 November. The
admission and placing has significantly increased the free float of
London Mining's issued share capital and added over 30 high quality
institutional investors to London Mining's register.
Operating Review
London Mining made significant headway on its four principal projects
over the quarter and has also embarked on several new initiatives as
the Company moves towards realising its ambition to become a mid-tier
developer of mines for the steel industry. These are the development
of a corporate social responsibility programme and an accelerated
JORC resource campaign.
Marampa (100%), Sierra Leone
During the quarter the company resolved its dispute with the
Government of Sierra Leone and African Minerals and was issued with a
new 13.82km2 mining licence. Testwork was also received from CDTN in
Brazil which showed that either sinter feed or blast furnace feed
could be produced from the reprocessed Marampa tailings using two
stage Wet High Intensity Magnetic Separation (WHIMS). Production of
sinter feed is possible without the installation of a milling circuit
and CRU Strategies have indicated that the resulting product should
capture a USD3/dmt premium to Brazilian Itabira fines if sold into
the European market. The Company expects to have a JORC standard
resource statement for the tailings in December 2009 and for the
primary ore in June 2010. A construction decision for Marampa is
expected by the end of 2009 following final ratification of fiscal
incentives in the Sierra Leone Parliament.
Wadi Sawawin (50% JV), Saudi Arabia
The Company remains confident of delivering the BFS for Wadi Sawawin
by the end of 2009. A 2,640m drilling campaign is underway with the
aim of extending the mine life for the project from 14 to 17 years.
The joint venture has a total licence area of 211.2 km2 with the area
comprising the current 230Mt resource lying within an area of 3.5km2.
Initial work indicates good further exploration potential and an
8,000m drilling programme is planned to increase the regional
resource.
Isua (100%), Greenland
During the third quarter, London Mining completed 3,600m of drilling
at Isua, the results of which will contribute towards an updated JORC
resource statement at the end of 2009. SNC Lavalin have been
appointed to complete a prefeasibility study and this expected to be
delivered during Q1 2010. Also during the quarter, the owner's team
was augmented by the appointment of Dr Xiaogun Hu, an expert in
glacier management and cold weather construction.
China Global Mining Resources JV (50%)
In July the CGMR JV commissioned Wardrop Engineering to estimate a
resource from historical drill data (60 holes comprising an estimated
24,000m of drilling were completed on the licence area in the 1970s).
Wardrop have indicated that mineralisation is pervasive throughout
the licence area and at depth. A drilling campaign to confirm the
historic data is currently being planned and is expected to commence
towards the end of 2009 with the aim of producing a resource
statement to JORC standards in 2010. The JV has entered an MOU to
acquire the other operators on the expanded licence, and is
progressing due diligence. The acquisition will provide an additional
0.3Mtpa of concentrate production capacity and allow the JV to begin
planning for an enlarged operation.
Other Investments
London Mining acquired interests in DMC Energy Pty Ltd (DMC Energy)
and International Coal Company (ICC) during 2008.
DMC Energy (effective 28%), South Africa
A definitive feasibility study for the 70% owned Rietkuil project has
still yet to be delivered by DMC. Early indications show that
Rietkuil can be developed on a wholly open-pit basis. The feasibility
study is expected to be released ahead of DMC's proposed listing on
the Johannesburg Stock Exchange in Q2 2010
International Coal Company Ltd (20%), Colombia
London Mining continues to review its investment in Colombia. The
Company is in negotiations with ICC regarding the provision of
limited funding of up to USD5 million to develop further the business
plan for coke and coal production. Any such funding is likely to be
made within the next few months.
Corporate development
Corporate Social Responsibilty
Further to the release of its Competent Person's Report in October
London Mining has engaged Wardell Armstrong to review its CSR
performance and capability. London Mining currently meets all local
Environmental, Health, Safety and Community requirements at a local
level but plans to ensure that all its projects are developed in line
with industry best practice.
JORC programme
London Mining has launched comprehensive mineral resource definition
programme in order to better understand the geological potential of
its resources under the supervision of its Manager for Resources and
Development, Sergio Guedes. The Company plans to report to JORC
standards in line with industry best practice. Updated resource
statements for Marampa, Wadi Sawawin and Greenland are expected by
the end of the year. The Company also plans to drill a further
22,000m to further expand existing resources.
For more information, please contact:
London Mining Plc
Rachel Rhodes, Finance Director +44 20 7201 5000
Thomas Credland, Head of Investor Relations
Liberum Capital (Broker/Nomad)
Clayton Bush/Ellen Francis +44 20 3100 2000
GMP Securities Europe
Jeremy Wrathall +44 20 7647 2800
Crux Kommunikasjon AS
Charlotte Knudsen +47 97 56 19 59
Threadneedle Communication (UK)
Laurence Read/ Graham Herring +44 20 7653 9850
About London Mining
London Mining Plc is a UK-based company that is developing mines for
the steel industry. The company owns 100% of the Marampa hematite
iron ore mine in Sierra Leone, 100% of the Isua magnetite iron ore
project in Greenland, a 50% stake in on the Wadi Sawawin joint
venture in Saudi Arabia and a 50% stake in the China Global Mining
Resources joint venture. It also has minority interests in South
Africa and Colombia. The Company listed on the Oslo Axess, a
marketplace regulated by the Stock Exchange, on 9 October 2007 and
the AIM on 6 November 2009. It trades under the symbol LOND.NO.
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