Cape Lambert Resources' (ASX:CFE) Sandenia Iron Ore Project in Guinea, West Africa, stands to benefit from a Trans-Guinean multi user railway and port infrastructure being proposed by Rio Tinto (ASX:RIO).
The corridor for the proposed solution is currently designed to run directly through the Sandenia permit, just 5 kilometres from the main deposit, offering a potential export route.
The company is planning to open discussions with the Guinean government and Rio Tinto to formulate a framework agreement for access to the planned 650 kilometre railway.
The Company is planning to open discussions with the Guinean government and senior representatives of Rio Tinto with the aim of potentially formulating a framework agreement allowing access to the planned multi user port and rail infrastructure.
"The news recently announced by Rio Tinto and its partners, demonstrates both Rio's and the Guinean Government's substantial commitment to developing the nation's wealth of mineral deposits," Cape Lambert executive chairman Tony Sage said.
"This situation bodes well for the company's Sandenia Iron Ore Project and provides a potential transport solution for the export of iron ore from the project once it is developed."
Sandenia Iron Ore Project
Sandenia is an early stage exploration project located about 290 kilometres east of the capital of Guinea, Conakry.
It consists of one exploration permit covering 298 square kilometres with five identified targets prospective for enriched oxide with underlying magnetite banded iron formation.
A combination of aeromagnetic interpretation, field mapping, trenching and sampling has allowed the company to estimate a global Exploration Target of 1.2 billion to 2 billion tonnes at 25% to 35% iron.
The project is considered to have similarities with Bellzone Mining's (AIM:BZM) Kalia Iron Ore Project located about 15 kilometres to the north that has a valid mining convention and reserves of 6.16Bt.
This is an interesting development for Sandenia and bodes well for future export of iron ore from the project once developed. It has no shortage of iron ore and any development would likely benefit from a relatively low opex.
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