Globe Metals & Mining expands Memba Project in Mozambique with option to acquire five licences

Globe Metals & Mining (ASX: GBE) has secured the option to acquire up to a 90% interest in five additional licences around the high grade ilmenite and vanadium-iron project at Memba in Nampula Province, Mozambique.

The company can earn up to an 80% interest in five additional licences through staged expenditure on exploration programs, with an option to purchase an additional 10% after five years from Mozambican company Siexpo Lda.

In total the five licences comprise about 1000 square kilometres in the highly active Nampula Province.

Globe is already proving the potential of its existing Memba project, in joint venture with Mihandzu Minerals, with previously released rock-chip samples showing very high grades of titanium with additional vanadium, including an average 47% titanium dioxide and up to 0.4% vanadium – which potentially is a valuable by-product.

An additional, separate high grade magnetite zone has also been identified with two samples averaging 66.8% iron.

Globe managing director Mark Sumich said, in simple terms, this means that if the Memba Project is as good as Globe thinks it is, the adjacent ground is important for capturing strike extensions.

“This part of Mozambique is also incredibly active in terms of both new mineral projects across a range of commodities, and also almost unprecedented infrastructure development for this part of Africa.”


Unprecendeted Infrastructure Development

The Governments of Mozambique, Malawi and Zambia, together with the private sector, have identified the Nacala Development Corridor (NDC) as a regional priority.

The area covered by the NDC includes: Nacala Port, the area bordering the Nacala Railway Lines to Entre Lagos, and Cuamba-Lichinga Railway lines and Lake Niassa.

A Joint Ministerial Committee, made up of public and private sector representatives, has been created to drive infrastructure development that facilitates the advance of resource sector activity in the area.

Developments include:

- Construction of new rail and rehabilitation of existing rail;
- Upgrade of the deep water port at Nacala to support a potential capacity of over 20 million tonnes per annum;
- Improved road networks;
- Power upgrades and extensions; and
- A new international airport at Nacala scheduled for completion in March 2013.


Highly Active Region

The NDC is home to the likes of Kenmare Resources, Pathfinder Resources, Vale and Rockover Resources.

Kenmare Resources’ Moma Mine is currently operating from the phase 1 Namalope Deposit, producing 800,000 tonnes per annum ilmenite, 50,000 tonnes per annum zircon and 14,000 tonnes per annum rutile, representing around 7% of global feedstock supply.

The phase 2 Nakata Deposit has a planned production rate of 1.2 million tonnes per annum ilmenite, 75,000 tonnes per annum zircon and 21,000 tonnes per annum rutile, representing about 10% of global feedstock supply.

Meanwhile, Pathfinder Resources has begun a Definitive Feasibility Study for ilmenite, zircon and rutile.

The company has defined a total Indicated and Inferred Resource of 2,021 million tonnes at 3.55% heavy mineral for 71.72 million tonnes contained heavy mineral sands. Total run of mine production is planned at 47 million tonnes per annum.

Vale’s Evate Phosphate Project is currently in the Prefeasibility Study stage and has an estimated production capacity of 2 million tonnes per annum.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/23821/globe-metals-mining-expands-memba-project-in-mozambique-with-option-to-acquire-five-licences-23821.html