Dannemora Mineral provides update on mineral reserve.
M2 EQUITYBITES-April 16, 2014-Dannemora Mineral provides update on mineral reserve
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Mining and exploration company Dannemora Mineral (STO: DMAB) on Tuesday provided an update on its mineral reserve.
Reportedly, as of 31 December 2013, the company's mineral reserve showed a probable mineral reserve of 29.1 million tonnes with an average grade of 34.2% Fe (iron). This is a decline in tonnage, as compared with the previous estimate in December 2012, which was 34.0 million tonnes and 34.5% Fe.
According to the company, the main reasons for the reduction in the reserve is that 2.6 million tonnes were mined in 2013. Also, a temporary cut-off level of 30% Fe is being used from 2013 up to the end of 2015. This means that areas in the mine with grades of between 20% and 30% Fe have been left and will continue to be left for the time being. After 2015, a cut-off level of 20% Fe will be reintroduced.
As a result, there is a total reduction in the probable mineral reserve of 4.9 million tonnes and a reduction in the Fe grade of 0.3%.
The estimated mineral resources for Dannemora Mineral as of 31 December 2013 amounted to 28.1 million tonnes with an average Fe grade of 39.2% (measured and indicated mineral resources).
Also, this new estimate shows measured mineral resources of 17.5 million tonnes with an average grade of 39.5% Fe, indicated mineral resources of 10.6 million tonnes with an average grade of 38.6% Fe and inferred mineral resources of 4.9 million tonnes with an average grade of 37.6% Fe.
According to the company, the inferred mineral resources have increased even though only limited drilling took place in the new areas of the mine. The main reason for this increase is that some of the resources that were previously classified as measured have been transferred to inferred mineral resources.
In addition, in 2014, the company plans to increase its drilling in order to investigate new magnetite mineralisations that have been discovered and to extend existing ore bodies.
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