Agbaja Iron Ore Project
The Agbaja 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 Macro Metals 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 infrastructure including road, river and power suitable to facilitate a major cast steel project.
Since 2016, the Company has advanced its intention to develop an integrated steel plant utilising the company 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, the Company 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 testwork 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.
Macro Metals is progressing its Bankable Feasibility Study to support financing for the Agbaja Project.
SD Capital and GKB Ventures Ltd 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. The majority 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.
