Overview
An Interim Inferred Mineral Resource of 86.3 million tonnes of iron ore @ 60.1% Fe was calculated in accordance with the JORC code. A draft submission for mining approval (NOI) for Bowerbird has been commenced by Keith Lindbeck and Associates and is under review. Application to convert exploration licences to mining leases in the north of the project area has commenced.
The high level project timeline defined the tasks and resources required for 2008 as part of the timeline necessary to achieve a 10 million tonne per annum production project by mid 2011. A conceptual pictorial overview of the area shows the potential mining areas and infrastructure locations. The key aspects currently initiated include application for a mining lease that encompasses the northern area, application for a million tonne bulk sample, environmental studies covering the proposed and existing mining lease areas, studies to define the sustained economic parameters required for the future feasibility study and a programme to expand the resource for the whole project area.
Key project objectives for 2008–2009
- Complete bulk sample mining on B and C ridges;
- Finalise the Oakajee and/or Esperance Port alternatives;
- Complete the scoping/pre-feasibility study;
- Complete all heritage and environmental studies for the north project area; and
- Lodge Mining Proposal with the Department of Industry and Resources.
Infrastructure
Two studies have been completed by Longrun Transport Developments Pty Ltd that evaluate two ore transport options, one from Wiluna to Esperance port and the other from Wiluna to the new proposed Oakajee port.
The infrastructure planning report for Wiluna to Esperance has been completed with cost estimates. The report is being revised and updated as project details are refined. The report will also progress the preparation of a comprehensive feasibility study. Initial cost estimates are not published in detail but an estimated cost of $25 per tonne for cartage from Wiluna to Esperance gives the Company confidence to pursue studies of the Esperance route as a viable alternative option to the proposed Oakajee port. Costs of transport for Wiluna to Oakajee are expected to be significantly less then the Esperance option.
The other study evaluates the alternative infrastructure options and costs for linking the Wiluna West Project to the proposed Midwest regional rail system to Oakajee Port. The Wiluna West Project is 700 km from the proposed Oakajee port (25 km north of Geraldton). The Midwest route will initially involve transporting at least 10 million tonnes of iron ore per annum through the Oakajee port. Railway infrastructure plans include railway construction from Wiluna west to south of Meekatharra at Weld Range for approximately 250 km, then joining the proposed Midwest regional planned infrastructure.
The Oakajee port planning has been less detailed and is dependant on Government approvals and on port and rail infrastructure being constructed by third parties. The Company is in discussion with the proponents in the Midwest Region for the proposed rail and port facilities to Oakajee.
Geraldton Iron Ore Alliance
The Company is one of seven members comprising the Geraldton Iron Ore Alliance (GIOA). The alliance is promoting the development of a successful iron ore industry in the Midwest region of Western Australia. The GIOA is assisting the members in dealing with the West Australian Government on sustainability including environmental and economic matters relating to mining of iron deposits and building the required infrastructure of rail and port to service this Midwest region.
Geraldton Iron Ore Alliance website →
Steel Mills
Presentations to overseas steel mills and iron ore dealers continued through the year. Strong interest is directed at longer term involvement in the Project through offtake agreements and infrastructure requirements. Several Asian steel mills have visited the Wiluna West Project. Due to confidentiality agreements, the Company cannot disclose information of interested steel mills until commercial agreements are finalised.