African Mining May 2020 | Page 6

• PROJECTS AND EXPLORATION • Location: Nigeria • Phase: Exploration • Resource: Iron Ore Within governments Covid-19 guidelines, ASX listed Kogi Iron, through its subsidiary KCM Mining, has continued with activities at the Agbaja Cast Steel Project in Nigeria. The company recently approved the excavation of a smallscale trial iron mining pit about 30m in length, 30m wide and approximately five metres deep. This pit will be located at the site of a previous bulk iron ore sample (pit #6) used for metallurgy and steel tests in 2018. The company expects work to be completed towards the end of this month. A local Lokojabased civil engineering company was awarded the contract to ensure local content and mitigate Covid-19 risks. According to Greg Boulton, chairman of Kogi Iron the trial pit and stockpiles of overburden and iron ore will be used to support reserve estimates and for ore characterisation tests, water studies, building material and agriculture studies in the Feasibility Study. “I am confident that Kogi Iron has taken appropriate measures to weather the COVID-19 storm and is well-positioned to grow our asset base and the business in Nigeria. It’s pleasing that our Agbaja Cast Steel Project is receiving recognition and interest by potential new ‘cornerstone shareholders’, says Boulton. Kogi Iron Kogi Iron MD David Turvey (centre); Alabi Samuel, KCM country manager (left); and Sunday Awoyemi, project geologist (right). The Agbaja Project is located on the Agbaja Plateau in Kogi State, Nigeria, about 200km from the capital city, Abuja. The Plateau hosts an extensive, shallow, flat-lying channel of 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. Agbaja is uniquely positioned proximal to existing, underutilised infrastructure including road, river and power suitable to facilitate a major cast steel project. Since 2016, Kogi has advanced its intention to develop an integrated steel plant utilising the leased iron ore deposit and nearby coal and limestone sources. The results of a laboratory scale test on the iron ore demonstrated that it could be converted to a steel feedstock suitable for electric arc furnaces. In November 2017, Kogi commenced a pilot plant test program on a large bulk sample to demonstrate the process in a continuous batch mode. Successful completion of this extensive test work in September 2018 confirmed the feasibility of producing a marketable cast steel product, together with the development of a flowsheet for the processing of Agbaja iron ore into cast steel suitable for billet making. Kogi Iron is progressing its Bankable Feasibility Study to support financing for the Agbaja Project. SD Capital and GKB Ventures were jointly engaged in October 2017 to secure debt funding for the project as well as equity finance to complete the DFS and project financing. Most of the debt funding is expected to come from Export Credit Agency funds and a detailed program is underway to ensure agencies are well aware of the project. “ In November 2017 Kogi commenced a pilot plant test program on a large bulk sample. Kogi Iron Kogi Iron’s Alabi Samuel, KCM country manager, on site in Nigeria. 4 • African Mining •May 2020 www. africanmining.co.za