REG - Zanaga Iron Ore - Positive Test Results Confirm DRI Product Quality

Zanaga Iron OreAnnouncement

25/06/2025 07:02

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RNS Number : 2623O  Zanaga Iron Ore Company Ltd  25 June 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW
BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS
DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR

25 June 2025

 

Zanaga Iron Ore Company Limited

("ZIOC" or the "Company")

Positive Metallurgical Test Results Confirm DRI Product Quality

 

Zanaga Iron Ore Company Limited (AIM: ZIOC) is pleased to announce positive
outcomes from its recent metallurgical test work programme, confirming the
ability to produce Direct Reduction Iron ("DRI") grade pellet feed concentrate
product from the Zanaga Iron Ore Project (the "Zanaga Project" or the
"Project"), capable of supplying the rapidly growing low carbon Electric Arc
Furnace ("EAF") steel sector.

Key Highlights

·      Product test work results from both hematite and magnetite
orebody lithologies met stringent DRI quality requirements critical for the
rapidly growing EAF steel sector:

o  Hematite concentrate grade results: 68.5 %Fe, 1.05 %SiO₂, 0.47
%Al₂O(3), 0.034 %P

o  Magnetite concentrate grade results: 69.1 %Fe, 1.96 %SiO₂, 0.40
%Al₂O(3), 0.028 %P

·      Test work results represent a significant improvement in planned
product quality versus the 2014 Feasibility Study, particularly in the
reduction of impurities (gangue minerals)

·      DRI product quality confirmation further reinforces the strategic
nature of the Zanaga Project

·    The Company is in process of completing an evaluation of the Net
Present Value ("NPV") upside of its planned DRI product - the results of this
will be announced shortly

 

Martin Knauth, CEO of ZIOC, commented:

"Our achievement of enhanced DRI product quality provides a positive base for
our ongoing value engineering work, including completing a feasibility study
of a DRI grade pellet plant which would provide further optionality to enhance
value by converting Zanaga's pellet feed concentrate into premium quality DRI
pellets.

I look forward to updating shareholders shortly on the value upside potential
of today's results, and on the progress across our key project workstreams as
we work to further actualise the extensive potential of the Project."

Clifford Elphick, Chairman of ZIOC, commented:

"These encouraging metallurgical results further reinforce our confidence in
the Zanaga Project's ability to produce premium-quality iron ore at large
scale. Achieving DRI grade product quality is a critical step toward enabling
the Zanaga Project to supply the rapidly growing Electric Arc Furnace steel
producers, positioning the Zanaga Project strategically in the evolving global
iron ore market landscape."

Strategic Importance

DRI grade product holds significant importance in modern steel manufacturing
due to its high purity and role as a feedstock into EAFs which offer a more
cost-effective, and more environmentally friendly steel production alternative
to traditional blast furnace methods. EAFs require lower capital investment
and maintenance; they can be installed and operated with significantly lower
upfront costs, using electricity instead of expensive and environmentally
harmful coking coal as the primary energy source, and can operate under lower
thermal stress, which reduces maintenance frequency and costs over time. The
advantages of employing this production method give projects that can deliver
DRI grade pellet feed concentrate a substantial market opportunity.

Accordingly, the achievement of DRI product quality test results is a
significant milestone for the Zanaga Project, positioning the Company to
potentially capitalise on the rising global demand for premium quality, low
carbon footprint steel products. The successful results from both hematite and
magnetite samples validates the robustness of the Zanaga Project's planned
processing approach. The ability to consistently produce high grade DRI pellet
feed concentrate, suitable for DRI pellet production to supply EAF steel
customers, provides a clear competitive advantage and highlights the Zanaga
Project's investment appeal to strategic and financial investors, whilst
contributing to sustainable steelmaking and aligning with global efforts to
reduce industrial carbon footprints.

Overview of test work and results

During Q2 2025, the Company commissioned and completed a metallurgical
laboratory test work programme aimed at determining the ability of the Zanaga
Project to produce DRI grade pellet feed concentrate across its full 30
million tonnes per annum ("Mtpa") planned production scale, including both
Stage One (12Mtpa) and Stage Two (18Mtpa expansion).

Representative samples of the Zanaga Project resource were assembled from both
hematite and magnetite orebody lithologies, required for the Stage One and
Stage Two phases of the Zanaga Project respectively.

The primary test work programme was conducted in China, involving
comprehensive laboratory analyses, employing magnetic separation and flotation
processes. Adjustments to the Zanaga Project's planned flow sheet resulted in
the optimisation of process step configuration and, in some cases, replacement
of certain processing equipment in the original flow sheet. ZIOC's team of
expert technical consultants have guided that there should be no expectation
of any significant change to capital and operating costs as a result of the
changes to the flow sheet.

A summary of the test results is provided below:

 Product                %Fe   %Si(2)O(3)  %Al(2)O(3)  %P
 Hematite concentrate   68.5  1.05        0.47        0.034
 Magnetite concentrate  69.1  1.96        0.40        0.028

 

Following the achievement of the positive results above, a separate
independent confirmatory test work programme was completed in the United
Kingdom, utilising a separate sample of the two orebody lithologies. The
results from this confirmatory work validated the test work results conducted
in China.

The Zanaga Project DRI test results fall squarely within or ahead of industry
benchmarks for DRI feed. Both its hematite and magnetite concentrates have
demonstrated to exceed the minimum DRI feed requirement of 66%-67%Fe, have low
gangue (SiO₂ + Al₂O3) and ultra‐low impurities - highlighting their full
technical compliance for DRI grade product quality.

 

For further information, please contact:

 Zanaga Iron Ore Company Limited                             Andrew Trahar

 Corporate Development and Investor Relations Manager        +44 20 3916 5021

 Panmure Liberum Limited                                     Scott Mathieson / John More / Josh Borlant

 Nominated Adviser, Financial Adviser and Corporate Broker   +44 20 3100 2000
 Shard Capital Partners LLP                                  Damon Heath

 Corporate Broker                                            +44 20 7186 9952
 BlytheRay                                                   Tim Blythe / Megan Ray / Will Jones

 Public Relations                                            +44 20 7138 3204

 

About ZIOC:

Zanaga Iron Ore Company Limited (AIM ticker: ZIOC) is an iron ore exploration
and development company, with the Company's flagship asset being its 100%
owned Zanaga Iron Ore Project located in the Republic of Congo, for which
the Government Mining Licence, Environmental Permit and Mining Convention are
all in place.

The Zanaga Iron Ore Project is a world-class asset with a 6.9 billion tonne
resource and 2.1 billion tonne reserve, designed for 30Mtpa production of
high-grade DRI pellet feed with very low levels of impurities. A 2024
Feasibility Study reaffirmed its robust economics. When fully ramped,  Stage
One (12Mtpa) and Stage Two (18Mtpa expansion) combined could make Zanaga one
of the largest iron ore mines globally. With all key permits in place,
Zanaga is positioned to capitalise on growing demand for high-quality,
low-impurity iron ore, leveraging low operating costs and a cost-efficient
slurry pipeline to the port.

In light of the changes in the world's economy, and the growing demand for
low-carbon steel production, the Zanaga Project is well-placed to become one
of the largest producers of high grade premium DRI pellet feed iron ore
concentrate.

The Zanaga Iron Ore Company Limited LEI number is 21380085XNXEX6NL6L23.

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