Sable Mining Africa's 80%-owned subsidiary West Africa Exploration (WAE) has entered into a memorandum of understanding (MOU) with the Government of Liberia to develop, use and operate rail and port infrastructure for the exportation of iron ore products from Mount Nimba project in the Republic of Guinea.
The MoU will allow the parties to conduct technical due diligence, third-party discussions and negotiations with a view to entering into a binding infrastructure development agreement.
Sable Mining CEO Andrew Groves said the MOU is an important step for WAE as it seeks to progress the Nimba Project towards commencement of operations in 2015 and also represents a milestone in co-operation between the Republic of Guinea and the Republic of Liberia.
"We look forward to working with the Government of Liberia as WAE seeks to formalise arrangements relating to the development, use and operation of the relevant infrastructure in the Republic of Liberia as soon as possible," Groves added.
In October 2013, Sable Mining Africa secured a mining licence for the project, which is expected to contain about 135 million metric tonnes of the steel-making ingredient.
The licence covers a 23km² area covering portions of the total 123.5km² Nimba project.
A drilling programme over the mining licence area, focused on a 200m by 3.9km extension area, indicated significant high-grade DSO mineralisation, including an intersection measuring 36m at 62% iron.