Adds broker comments...
Bellzone Mining (LON:BZM) says its Forécariah JV project with China International Fund in West Africa is on track to start producing iron ore in the first quarter of 2012.
The AIM-listed firm also revealed today that it expects to be announcing resource estimates from phase 1 of the programme in the Republic of Guinea in July 2011 with a resource classification expected in Q3 this year.
The programme so far has included sampling and drilling, involved a number of targets, and 1,600m of drilling to delineate the structure, said Bellzone.
All drill holes intersected iron ore and an area of 2.7 sq km showing oxide at surface has been mapped.
"Phase III resource development will focus on the remainder of the 2.7km2 initial target with results expected in late Q4 2011," it said.
Work on the road to connect the project to the port of Konta has begun, and includes the upgrade of an existing 56km of road.
Studies on the port, including a feasibility study, are scheduled for completion in July this year, with site clearance expected to begin in August.
Preliminary mine production is earmarked to begin next month with environmental approval expected in the third quarter this year, added Bellzone. The first phase of the mining camp has been built.
Bellzone CEO Nik Zuks said: "These are exciting times. I am very pleased with the progress achieved in a short time by our combined CIF and Bellzone team and with the strong support received from the Guinea government for both our major projects.
"The JV is working very well, project management is strong and everyone associated with the project is focused on achieving production in Q1 2012."
In a note, broker Renaissance Capital, which maintained its "buy" rating for the stock, targeting a price of 140 pence, said: "The update indicates that the project timetable is being met and that resource drilling of the oxide material using RC rigs has commenced.
"Volumetric results from the initial drilling may be available in July, although given assay turnaround times, the maiden resource statement is expected to be published in September 2011 and is expected to be updated in December 2011.
"Subject to no delays in the approvals and permitting process, the project remains on track for shipment of first ore in March 2012."
The broker also noted the firm's Kalia project: "Although the announcement focused on the Forecariah project, we note that progress is continuing at the Kalia mine project, where a first pass drill programme over target 2 at the Kalia project has been completed with an initial resource expected in September 2011," it said.
"A second stage drill programme is scheduled to commence in July that will focus on infilling and extending the resource outlined in the first phase and lead to an updated resource in December 2011. This resource together with an updated magnetite resource that is expected in September 2011 will form the basis of a DFS that is planned to be completed by the end of the year."
Bellway Mining's shares were up 3.8 percent in early deals, trading at 41 pence.