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Cape Lambert Resources Limited (ASX:CFE) Positive Results from Marampa Metallurgical Program

Key Points:

- Follow on Marampa metallurgical test work program in progress, aimed at amongst other things, reducing processing costs.
- Metallurgical test program is being supervised by independent, engineering group, Bateman Engineering Pty Ltd.
- Modelling by JK Tech Pty Ltd indicates a reduction of up to 75% of grinding power by adopting conventional crushing and screening, and ball milling.
- Iron recovery to concentrate increased to 93-94% (compares to 84- 85% in Scoping Study), whilst maintaining high mass recoveries (42-46%) and concentrate iron grades (63-65% Fe).
- The improved mass and iron recoveries and decreased grinding power will translate into lower concentrate production costs.
- Release of Marampa resource update scheduled for the first week of July whilst the independent geological consultant finalises the resource estimate.

Australian resources and investment company, Cape Lambert Resources Limited (ASX: CFE) ("Cape Lambert" or the "Company" ) is pleased to update the market on improved metallurgical test results from its 100% owned Marampa Iron Ore Project located in Sierra Leone, West Africa ("Marampa Project" or "Marampa") (refer Figure 1).

On 18 March 2011, the Company announced the results of the Marampa Scoping Study ("Scoping Study"). The Scoping Study was prepared by independent engineering group, Bateman Engineering Pty Ltd ("Bateman").

Since the completion of the Scoping Study, Bateman has continued to manage a follow on metallurgical test work program, which amongst other things is aimed at reducing power requirements and optimising concentrate iron grade and recovery.

Test results to-date indicate that grinding power requirements are likely to be 75% less than assumed in the Scoping Study. This will result in a reduction in processing operating costs. Comminution modelling carried out by JK Tech Pty Ltd on the primary ore types suggests that optimally, the crushing and grinding circuit should consist of a typical three stage crushing and screening plant, which will feed smaller ball mills instead of larger and higher power consuming SAG mills, as assumed in the Scoping Study.

In addition, samples of the higher grade primary ore, which are representative of each of the Matukia and Gafal West deposits have been subject to wet, high intensity magnetic separation (WHIMS)  "Locked Cycle Testing" in accordance with the process flowsheet developed in the Scoping Study  ("LCT Testing").
LCT Testing of Matukia and Gafal West ore has confirmed that iron recoveries exceeding 90% are achievable whilst maintaining a concentrate iron grade of 63-65% Fe.

Table 1 summarises the results of the LCT Testing.

Table 1 - LCT Results 

Deposit    Feed%                 Concentrate Grade                        Mass           Iron
                  Fe         %Fe      %SiO    2%Al  2O3 %S  %P     Recovery   Recovery

Matukia       31.9        64.7         3.2    1.0                0.000  0.012   46              94 
Gafal West 28.3         62.9         4.7      1                 0.001  0.011   42              93

 Marampa Resource Update

On 10 June 2011, the Company advised that it expected to be in a position to release the Marampa resource estimate by the end of June 2011. Finalisation of the resource estimate by the independent geological consultant has taken longer than anticipated, and the updated Marampa resource estimate is now expected to be released in the first week of July.
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