LONDON (ShareCast) - Ferrex’s shares jumped after the African-focused iron ore and manganese company reported positive drill results from the Mebaga iron ore project in northern Gabon.

Assay results for the first two holes completed from the diamond drilling programme at the 309 sq km project showed direct shipping ore (DSO) grades up to 62.7% iron.

Nine holes have been completed, including one metallurgical hole that will be sent for initial testwork to determine how much metal can be extracted.

The drilling programme will recommence in the first half of 2014 once the rainy season ends.

The group is targeting 90 to 150m tonnes of DSO and beneficiate before shipping ore oxide material grading of 35% to 65% iron.

"These exciting first drill results underpin the company's belief that Mebaga has the potential to host a significant DSO grade iron ore resource,” said Managing Director Dave Reeves.

“When you combine these drill results with our stated exploration target of 90mt to 150mt of oxide material which has been calculated over 11km of the 20km of the strike length of Mebaga, the very exciting upside potential that this project has to offer soon becomes evident.”

Shares were up 1.39% to 1.82p at 15:04 on Monday.

RD

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