The Agbaja iron ore project is located on the Agbaja plateau in Kogi State, Nigeria, approximately 200 kilometres from the capital city, Abuja. The plateau hosts an extensive, shallow, flat-lying channel iron deposit (CID) and Kogi Iron has determined a Probable Ore Reserve of 205 million tonnes at a grade of 45.7% iron (Fe) estimated in accordance with the JORC (2012) code. Mineral Resources on the plateau are 586 million tonnes with an in-situ grade of 41.3% and comprise an Indicated Mineral Resource of 466 million tonnes at 41.4% Fe and an Inferred Mineral Resource of 120 million tonnes at 41.1% Fe, all estimated in accordance with the JORC (2012) code.
The Agbaja Project is uniquely positioned proximal to existing, under-utilised river and port infrastructure suitable for the transport of bulk commodities, such as iron ore concentrate.
In January 2014 the Company announced the results of a Preliminary Feasibility Study (PFS) which determined that the development of an iron ore mining and processing operation at Agbaja to produce 5 million tonnes of upgraded iron ore concentrate was technically and economically viable. The Agbaja Project is robust and highly attractive with an IRR of 23.7%, an estimated pre-tax NPV of US$420 million (@ 12% discount) and a four year capital payback.