Zanaga Launches Bulk Sampling

Zanaga begins bulk sampling, advancing Congo iron ore project toward construction decision.

What the company is saying

Zanaga Iron Ore Company Limited is announcing the launch of a bulk sampling programme at its 100%-owned Zanaga Iron Ore Project in the Republic of Congo. The company frames this as a critical step toward a final investment and construction decision, highlighting the extraction of approximately 30,000 tonnes of ore to assemble a 100 tonne composite sample for metallurgical testing. Management emphasizes that this marks the first major equipment mobilisation at the site since 2014 and follows the deployment of proceeds from a May 2026 equity raise. The announcement stresses that all required environmental and mining permits are in place, and that stakeholder consultations have been completed. CEO Martin Knauth expresses confidence in the project's progress and reiterates the goal of producing high-grade DRI pellet feed. The company positions the project as globally significant, citing a 6.9 billion tonne resource and a 2.1 billion tonne reserve, with ambitions to reach 30Mtpa production when fully developed.

What the data suggests

The disclosed figures confirm that 30,000 tonnes of ore are being extracted to create a 100 tonne composite sample from the hematite zone, specifically for Stage 1's planned 12Mtpa operations. This sample will undergo metallurgical testing to validate a revised DRI processing flowsheet and inform process engineering design. The project is described as having a 6.9 billion tonne resource and a 2.1 billion tonne reserve, with an ultimate production target of 30Mtpa of high-grade DRI pellet feed. Equipment mobilisation began in July 2026, funded by proceeds from a May 2026 equity raise. The bulk sampling is intended to provide process feed insight for the first 5–10 years of operations and to support pilot-scale validation, customer testing, and cost estimation. No financial statements, cash balances, or cost figures are disclosed, and no results from the sampling or metallurgical testing are yet available. The announcement substantiates operational progress but does not provide evidence of commercial or financial milestones.

Analysis

The announcement is positive in tone and provides specific operational milestones, such as the extraction of 30,000 tonnes of ore and the assembly of a 100 tonne composite sample. However, the majority of key claims are forward-looking, including expectations for metallurgical testing, process flowsheet confirmation, and the project's potential to become one of the world's largest iron ore mines. The benefits described (production, cost estimates, DRI product) are long-term and contingent on successful completion of multiple future steps, including FEED, FID, and construction. There is evidence of recent capital deployment (May 2026 equity raise), but no immediate earnings or cash flow impact is disclosed. The narrative inflates the signal by referencing the project's global significance and future scale, while actual progress is limited to early-stage sampling and test work. The data supports that operational activity has resumed, but not that any commercial or financial milestones have been achieved.

Risk flags

• ●Execution risk is high, as the project remains at a pre-construction stage with only bulk sampling underway. The transition from sampling to metallurgical testing, FEED completion, and ultimately construction involves multiple complex steps, each with potential for delay or failure.
• ●Financing risk is present, given the capital-intensive nature of a 30Mtpa iron ore project and the absence of disclosed binding offtake agreements, EPC contracts, or detailed funding plans beyond the recent equity raise. The company will likely require substantial additional capital to reach full development.
• ●Permitting and stakeholder risk, while partially mitigated by the stated completion of consultations and permit grants, remains relevant in the Republic of Congo context, where regulatory, political, or community factors can affect project timelines and costs.
• ●Market risk is material, as the project's value proposition depends on sustained demand and pricing for high-grade DRI pellet feed. Any shift in steelmaking technology, global iron ore demand, or price volatility could impact project economics.
• ●Disclosure risk exists due to the lack of financial data, cost estimates, or detailed timelines in the current announcement, limiting visibility into the project's economic viability and progress toward key milestones.

Bottom line

Zanaga Iron Ore Company Limited has initiated bulk sampling at its Congo project, extracting 30,000 tonnes of ore to assemble a 100 tonne composite sample for metallurgical testing. This operational step, funded by a recent equity raise, is necessary for validating the project's revised DRI flowsheet and informing future engineering and cost estimates. The project boasts a 6.9 billion tonne resource and a 2.1 billion tonne reserve, targeting 30Mtpa production, but remains at an early stage with no disclosed results from sampling or test work. The announcement demonstrates resumed activity after a long hiatus but does not de-risk the project or provide financial transparency. Investors should recognise that the path to construction, production, and cash flow is still long, with significant execution, financing, and market risks ahead. The most important takeaway is that while operational progress is real, commercial and financial milestones have yet to be achieved or disclosed.

Announcement summary

(LSE/AIM:DI) Zanaga Iron Ore Company Limited announced the launch of a bulk sampling programme at its Zanaga Iron Ore Project in the Republic of Congo. Approximately 30,000 tonnes of ore is being extracted to assemble a 100 tonne composite sample from the hematite zone targeted for Stage 1's 12Mtpa operations. The 100 tonne sample will be sent for metallurgical testing to conduct pilot scale test work and confirm Zanaga's revised DRI processing flowsheet at a larger scale. Mobilisation of equipment and personnel commenced in July 2026, involving a prominent RoC-based civil earthworks contractor, following deployment of proceeds from the Company's May 2026 equity raise. Excavation is proceeding in accordance with environmental and mining permits, after mandated RoC state and community consultation processes. Composite samples from principal hematite ore types will provide an advanced view of process feed for the first 5-10 years of Stage 1 operations. The programme marks the first major equipment mobilisation at the project site since 2014 and is a critical activity towards completing the FEED programme and progressing to a Final Investment Decision and full project construction. The bulk sampling and associated metallurgical test programme are expected to support a revised Stage 1 base-case processing flowsheet targeting a DRI-specification product, definition of primary and secondary process equipment, updated mass, energy and water balances, and the definitive basis for process capital and operating cost estimates. The Zanaga Iron Ore Project has a 6.9 billion tonne resource and a 2.1 billion tonne reserve, targeting 30Mtpa production of high-grade DRI pellet feed with very low impurity levels. When fully developed, Stage One (12Mtpa) and Stage Two (18Mtpa expansion) together could establish Zanaga as one of the world's largest iron ore mines.

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