African iron ore explorer and developer Genmin (ASX: GEN) has received a six year extension for exploration licences covering its wholly-owned Baniaka and Bakoumba iron ore projects in central Africa.
The extension was received from the recently-established Ministry of Mines in Gabon.
The Baniaka project comprises the Baniaka and Baniaka West licences over a combined 881 square kilometres, which hosts 85km of iron mineralised strike.
Of that mineralised strike only 18% is included in a 700 million tonne mineral resource.
Six out of a total 12 prospect areas across the project host detrital iron deposits (DID) and soft oxide resources and are the focus of a preliminary feasibility study due for completion at the end of the September quarter.
The study is evaluating a bulk open pit mining operation at the project, which would produce about 5Mt of iron ore products per year with a possible expansion to 10Mtpa.
Bakoumba licences
The Bakoumba project comprises the Bakoumba and Mafoungi licences across 1564sq km, located approximately 80km to the west of Baniaka.
Bakoumba hosts 36km of iron mineralised strike and represents regional exploration upside to Baniaka.
Genmin is planning to commence a maiden DID drill program at Bakoumba in the September quarter.
The early-stage Bitam exploration licence across 1463sq km was also renewed for a term of three years.
The project is prospective for iron, copper and gold.
Bandjougoy resource
In May, Genmin unveiled a maiden resource for the Bandjougoy prospect within the Baniaka project to boost the total global resources for the project to 700Mt of contained iron ore.
The total inferred oxide and primary mineral maiden resource estimate for Bandjougoy totals 436Mt of contained iron ore grading 34.8% iron.
Baniaka now hosts the largest resource of any project in Gabon across all commodities.
Genmin has already secured three offtake agreements for the project, which will account for about 6Mtpa of iron ore over varying periods.
One of the agreements is with China’s second largest privately-owned iron and steel maker Jianlong, which will purchase 1.5Mtpa of fines and a further 500,000tpa of lump over two years.
