IFM hikes Sky Chrome, Lesedi resources 64%

An updated resource and reserve has indicated positive increases in tonnages and grades for ferrochrome producer International Ferro Metals’ (IFM’s) Sky Chrome and Lesedi mines in the Bushveld Complex, in the North West province, the company stated on Wednesday.

The total resource had increased by 64% from 125-million tons to 206-million tons, with the average chrome oxide (Cr2O3) grade having increased from 34.49% to 37.57%.

In addition, the total reserve had increased by about 6% to 92-million tons, with the average Cr2O3 grade having reduced marginally from 28.11% to 27.85%.

The improvements in resource grade and tonnages largely reflected the remodelling of the resources at the Sky Chrome and Lesedi mines, as well as the conversion and addition of the inferred resources at Sky Chrome mine.

“The increase in tonnages and grades in our latest resource and reserve statement demonstrates the quality of IFM’s assets, and underlines the long-term value inherent in the company.  Combined with our successful cost cutting and improved operational stability, we are continuing to position IFM well for the future,” CEO Chris Jordaan said.

Meanwhile, IFM had also been awarded the rights to the platinum-group metals (PGMs) in the middle-group chrome seams of the Sky Chrome mine.

“The resource statement for the PGMs has been completed and resulted in an estimated inferred resource of 1.34 g/t of PGMs in the 181-million tons of total chrome ore resource at Sky Chrome,” IFM stated.

The company also confirmed that its R500-million loan facility with the Bank of China was expected to be renewed for a further year in September.

The facility, which had been in place since June 2009, had been provisionally extended to September 25 to allow sufficient time for the Bank of China head office approval process to be completed. A further announcement would be made when the renewal became effective, IFM said.