Shares in Sundance Resources, an international resources company developing the Mbalam Iron Ore Project in the Republic of Cameroon and the Republic of Congo, in central west Africa, shot up by almost 7% once it reported finding high quality iron ore at Mbalam.
The company now has 417.7 million tonnes of iron ore at 61.4 % iron at the project. This is a sharp rise from the previously calculated 169 million tonnes of iron ore. The company has a market capitalization of $1.16 billion.
Sundance managing director Giulio Casello said that the new resource estimate further strengthened the company's confidence in the viability of Mbalam. He added that they were now approaching half a billion tonnes of high quality iron resources and 85 per cent of that was now indicated at the project which is based in Cameroon and the Republic of Congo.
The stock market reacted positively to the news of the conversion of “inferred” to “indicated” in terms of hematite ore at the company’s property at the Nabeba Deposit in the Republic of Congo. The managing director also said that they have a a globally significant project capable of producing 35 million tonnes per annum of high quality iron ore for at least 25 years.