StockMarketWire.com - Anglo-African Minerals subsidiary Forward Africa Resources has received positive results from its recently completed scoping study on its bauxite project in Guinea.

Highlights for the base case:

· Development of a 3Mtpa bauxite export operation with a planned product specification of 41.9% Al2O3, 3.4% SiO2, and a planned moisture content of 11%;

· Internationally compliant Inferred Mineral Resource, with opportunity to expand the current resource of 43Mt to extend mine life;

· Preliminary results from current exploration infill drilling campaign due in early 2015;

· Shallow open-cut mine, utilising conventional drill and blast, truck and shovel operations, with 15 years of mine production;

· Utilisation of existing third-party operated rail and port infrastructure.

· LOM free cash flow of USD294 million;

· Free on Board (FOB) estimated average selling price of USD33.25/t bauxite;

· Positive cash flow within 12 months of commission; and

· Positive Net Present Value of USD163 million. Chief executive James Lumley said: "The scoping study of the FAR Bauxite Project base case indicates a positive NPV which is a multiple of the Company's market capitalisation. The Board considers that this can be elevated through additional drilling to increase the existing 43 million tonne resource base and potential life of the mine. The Board have elected to prioritise the development of the FAR Bauxite Project through the establishment and commencement of more detailed fast-tracked technical studies focused on the material aspects of the project. I look forward to updating shareholders over the forthcoming months as we continue the development of our priority FAR Bauxite Project."

At 9:37am: [LON:AAM] Artemis Aim Vct 2 Plc share price was 0p at 64p



Story provided by StockMarketWire.com