Bellzone Mining plc announced an update and results of the technical study undertaken to date on its Kalia Project for the production of ferronickel, as the first step in exploiting its Kalia iron ore concession. Highlights are: Further detailed study to determine the major cost parameters for a base case ferronickel project indicates a financially attractive opportunity; production capacity base case of 2 x 1.2MW smelters has been established with a targeted 9,602 tpa FeNi product over 20 years; Objective of delivering product with a specification of Ni 18.0%; Fe 81%; Si 0.05%; S 0.03%; P 0.05%; Cr 0.03%; C 0.10%; Co: Ni ratio <1:50; Cu:Ni ratio <1:100 has been established; The product specification may improve with project optimisation work to be undertaken during the feasibility study. Future positive exploration results within the existing Mining Licence area may also increase project scale and life of mine assumptions; preliminary base case total capital cost is estimated to be USD 51 million (capital intensity of USD 5,359 per annual tonne of production); Base case assumptions with illustrative 10% discount rate result in a conceptual break-even price of USD 10,617/t; the planned Ferronickel Project production is supported by Indicated and Inferred Mineral Resources of 79.28 million tonnes at 0.69% Ni reported in accordance with the Joint Ore Reserves Committee (JORC) Code 2012 published by Bellzone in October 2015; the Ferronickel Project represents a start to iron ore mining at Kalia, ahead of Kalia Project 1 or ‘KP1’, the planned exploitation of the highest grade iron ore at Kalia. The Ferronickel Project has the benefit of stripping the lateritic cap above sections of the iron oxide that will be exploited in KP1 and KP2; and the outcome of the work to date has resulted in Bellzone committing to completing a Feasibility level technical study as per the JORC Code 2012.