Current Work Program
Drilling at Mbarga – looking west towards Metzimevin Sundance is progressing a significant exploration program to confirm the resource potential at Mbalam. The Resource Definition drilling program is now well advanced on the Mbarga Deposit. Drilling will assess the extent, depth, continuity and grade of mineralisation at the Mbarga and Metzimevin prospects identified by the UNDP, then extend to evaluate other prospects identified through the aeromagnetic surveys completed by the company. The company is aiming to confirm sufficient hematite mineralisation to support production at 35 million tonnes per annum for at least 20 years.
A Pre-Feasibility Study completed by WorleyParsons iin January 2008 estimated a total capital cost of ~US$3.27 billion for developing the start-up DSO Operation. This included the mine, crushing and screening plant, stockpiling facilities, 490 kilometre railway system, and a port capable of handling 250,000 DWT cape size vessels.
Development of the project is being progressed on a fast-track schedule. Critical to this program is to secure approvals for the mine and land access for rail and port infrastructure through a Project Convention to be executed with the Cameroon Government. Sundance is progressing definitive studies to define iron ore reserves and complete detailed planning for project construction and operations with target commencement of operations in 2012. Project financing will be based on the fiscal terms defined in the Project Convention.
Sundance aims to secure iron ore sales contracts with the world’s major steel producers. This will include mills in Europe – which are strategically located for supply from the Mbalam project – as well as in China, India and the Middle East. The global steel industry is forecast to continue to grow strongly with this growth in steel production to continue driving strong iron ore demand for the foreseeable future.