Zanaga Iron Ore Company Limited (LON:ZIOC) said the recent rise in the price of iron ore has made its project in the Republic of Congo even more attractive.
Problems with supply in Brazil and the trade dispute between the US and China have sent the price of the metal shooting up to more than US$120 per tonne from US$60 in 2018.
Zanaga said its project is economically attractive at much lower prices and it believes the recent spike in the iron ore price underlines its investment case.
The group agreed a 2020 work programme with partner Glencore in July of which ZIOC estimates its contribution will around US$0.7mln in total.
Work is running within the 2020 budget forecast, it added, while cash reserves at 28 September were US$0.5mln.
Zanaga added that during the first six months of the year it had made progress on several of the key logistical challenges associated with both the 30Mtpa mine project and an alternative early production project.
Losses for the half-year were US$780,000 (US$606,000).