Kalia

The Kalia Project is Bellzone's 100%-owned flagship asset and is host to JORC-compliant resources of 6.16 billion tonnes of iron ore and 79.3 million tonnes of nickel ore.

The Kalia Project consists of two large iron-rich mineralised deposits, Kalia l at 19km in length and Kalia ll at 20km in length. The project is located approximately 300km to the east of Conakry in the Republic of Guinea, West Africa.

Kalia has a valid Mining Convention which grants and guarantees Bellzone the right to extract, process, treat, transport, export and sell iron ore from the Kalia Mine licence area and defines the legal, administrative, financial, tax, customs, mining, environmental and social conditions for the management of the relationship between the government and Bellzone. The Mining Convention was ratified by the President in August 2010 and published in the Government Gazette.

The globally significant JORC-compliant Resources defined at Kalia are supported by more than 274,000m of drilling and in excess of 80,000 assay samples. The iron ore resources consist of four distinct mineral types which are direct shipping ore (DSO), oxide, supergene banded iron formation (SBIF) and magnetite (including BIF and magnetite schist). The oxide material is formed in horizontal layers with the DSO at or near surface. The DSO overlies the oxide that, in turn, covers the SBIF that sits above the near-vertical magnetite zones, which are separated by low-grade magnetite schist.

Kalia's total higher-grade JORC oxide resources now stand at 124.2Mt at a grade of 53.5% Fe (cut-off at 48% Fe) within a larger oxide and SBIF JORC resource of 913.2Mt @ 36.3% Fe. The 4.72 billion tonnes per the JORC resource for the magnetite has a grade of 29.3% Fe and test work demonstrates the production of a high-grade iron ore product from this material with a relatively low work index. See the updated iron ore resource statement RNS and maiden JORC Reserve RNS for more detail.