OREANDA-NEWS. February 07, 2011. Severstal, one of the world’s leading integrated steel and mining companies, today announces that an independent mineral resource report has estimated a doubling in natural resources at its Putu iron ore project in Liberia to 2.4 billion tonnes. Severstal is the majority stakeholder in the project with a 61.5% interest and African Aura has 38.5% in Putu project.

The mineral resource NI 43−101 compliant report issued by independent engineers SRK Consulting (“SRK”) has estimated a total of 2.37 billion tonnes of iron ore in the existing pit at Putu, with an estimated 34% iron concentration. SRK also identified the potential for a further 1 billion tonnes to 2.5 billion tonnes of iron ore below the project’s existing pit shell.

Boris Granovsky, Head of Strategy for Severstal Resources, commented:
“Increased resource at Putu allows us to go forward in preparing feasibility study and building a sizeable iron ore complex in Liberia”

More detailed information about SRK report can be found in the African Aura announcement here: http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=10781391

The Putu iron ore project is a 13km long iron rich ridge, located only 130km inland from the deepwater shoreline of eastern Liberia. In February 2011 independent mineral resource estimate of 2.4 billion tonnes of iron ore at 34% total Fe announced for the project. A Mineral Development Agreement detailing the fiscal and legal terms for the development and mining of the Putu iron ore deposit was granted and ratified by the Government of Liberia on 9th September 2010. The Agreement term is for a period of 25 years and this can be extended further in line with the life of mine.
The project is being advanced in joint venture with African Aura Mining Inc. who have a 38.5% interest in the project. Since 2008 Severstal has held a 61.5% interest in the project following the investment of USD 30 million into the pre-feasibility study. Severstal also holds a 2.91% interest in African Aura.