Ferrexpo plc has announced a 95% increase in proved and probable reserves within its Gorishne Plavninskoye and Lavrikovskoye deposits. The results are based on mine design and optimization undertaken to a pre feasibility level as part of the project to expand and extend the Group’s existing GPL operations.

Further to the resource announcement of June 3rd 2008, Ferrexpo engaged Turgis (Pty) Limited to assist it in revising the GPL mine plan. This work is now completed and Turgis have confirmed that the proved and probable reserves associated with the GPL mine have been increased by 95% to 955 million tonnes, from 491 million tonnes at the time of the group’s listing.

As previously reported, the resources associated with the GPL mine in the measured, indicated and inferred categories have been increased by 127.4% to 3,704 million tonnes, from 1,629 million tonnes at the time of the Group’s listing. The primary reason for the increase in resources is due to an extension in the depth limit to which resources have been declared in accordance with the JORC code.

Mr Mike Oppenheimer CEO of Ferrexpo said that “We have delivered on the promise we made at our listing to complete the engineering review and optimization of our GPL mining operations. This has resulted in an almost doubling of proven and probable reserves and the production expansion project already announced. We expect to complete the Feasibility Studies for the upgrade of our GPL beneficiation plants by the end of next month. Together, these initiatives provide a robust underpinning for our operating cash flows and reinforce our confidence in our financial capacity to move ahead with our new mining projects.”

Revised reserve statement

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Previously announced resource statement

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