Legacy Iron Ore (ASX: LCY) has reported that National Mineral Development Corporation (NMDC) has instructed its independent experts to expand their scope of work on the Mt Bevan Iron Ore Project to incorporate the average iron concentrate grade recoveries of 69.8% into their valuation of Legacy.
Legacy has entered into a Memorandum of Understanding with NMDC, a Government of India owned public enterprise under the control of the Ministry of Steel, to develop the Mt Bevan project and plans to sell up to an equity interest in Legacy, based upon an independent valuation.
The DTR results announced on July 20 indicated an average iron concentrate grade of 69.8% and low impurity levels and will be included into a valuation report to be presented to the board of Legacy. These results confirm the potential for the project to deliver blast furnace or direct reduction grade quality pellets.
Sharon Heng, Legacy chief executive officer, said “although the incorporation of these new DTR results will add an additional 2-3 weeks to the overall timing, we believe that the high concentrate grade and low impurity levels justifies the additional wait, given it is anticipated to increase the underlying valuation.”
The company anticipates that the independent valuation will now be completed during the week commencing 8 August 2011, with the NMDC approved formal offer to be tabled to the Legacy board by 22 August 2011.
NMDC is India’s single largest iron ore producer, with reported resources in excess of 800 million tonnes. The agreement with Legacy will introduce a significant Indian iron ore producer and developer, with the relationship expected to lead to the development of a mine at Mt Bevan, along with acquisition of complementary resource projects.
Mt Bevan combines a potentially very large magnetite resource with low strip ratios and excellent metallurgy, in a location close to road, rail and an existing deep water port.
Legacy Iron is earning a 60% interest in Mt Bevan from Hawthorn Resources (ASX: HAW), by committing $3.5 million to exploration and completion of Pre-Feasibility studies before the end of calendar year 2012.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/18240/legacy-iron-ores-high-iron-recoveries-from-mt-bevan-to-be-included-in-independent-valuation-18240.html