Zanaga Iron Ore Company Limited has announced its unaudited interim results for the six months ended June 30th 2012.

Highlights are as follows:

Pre feasibility study to examine slurry pipeline transportation option nearing completion

Publication of key outcomes expected October 2012

57% increase in JORC Mineral Resource to 6.8 billion tonnes at 32.0% Fe, with 69% in the Measured & Indicated resource category

Drilling program to feasibility study standard completed

74% increase in Measured and Indicated resource category to 4.69 billion tonnes with an average grade of 32.5% Fe

More than 176,000 meters drilled across only 25 kilometers of the 47 kilometers ore body

Corporate
Cash balance of USD 42.5 million as at June 30th 2012

Mr Clifford Elphick non executive chairman of ZIOC said that "I am pleased to report substantial progress on the Zanaga Project during the first half of the year. Following the positive results of the Value Engineering Exercise on a slurry pipeline transportation option, a Pre Feasibility Study was initiated to further refine this option, with the potential for improved economics and a higher grade product. The Pipeline PFS is nearing completion and we expect to announce the results in October 2012. This will assist in determining which transport option to take through to final Feasibility Study."

He added that "In addition, an extensive drilling campaign has been conducted to Feasibility Study standards, resulting in a 57% increase in the size of the JORC Mineral Resource, as well as further improvements in the understanding of our large ore body, The JORC Mineral Resource has now increased to 6.8 billion tonnes at 32% Fe, with 69% contained in the Measured & Indicated resource category."

Source - Zanaga Iron Ore Company Limited

(www.steelguru.com)