🕐17.11.10 - 03:54 Uhr
Cashmere on track for DSO operation from WA iron ore project in 2013 as port &am p; rail agreements made
Cashmere Iron
MEDIA RELEASE
17 November 2010
Cashmere on track for DSO operation from WA iron ore project in 2013 as
port and rail agreements established
Key points
- Cashmere Iron is a public unlisted company with its project in the Mid
West and Yilgarn regions of Western Australia.
It established a
predominantly JORC Measured/Indicated 1 Bt resource in early 2010.
Preliminary metallurgical results show the hematite cap and magnetite
deposit are capable of producing a marketable high-grade concentrate.
Cashmere is completing a DSO program with results due in December 2010.
- Esperance Ports Sea and Land has announced a two stage expansion of the
multi-user port facility at Esperance in Western Australia, with the first
expansion of 10Mtpa by Q4 2012;
- Cashmere Iron has agreed to provide funding for the capital costs
associated with the expansion of the port and will use an allocation of
5Mtpa of DSO from its Cashmere Downs project;
- Cashmere Iron will also be collaborating with Westnet Rail regarding
upgrades to the regional rail infrastructure.
- Cashmere Iron Ltd ("Cashmere" or "the Company"), an unlisted public
company based in the Mid west region of Western Australia, remains on track
for the commencement of a Direct Shippable Ore ("DSO") operation from its
100% owned Cashmere Downs Iron Project ("Cashmere Downs").
Cashmere has signed a Framework Agreement ("Agreement") with Esperance
Ports Sea & Land ("EPSL") on 28 October 2010 that will see an expansion of
the capacity at the multi-user port at Esperance by 10mpta from Q4 2012.
A
second stage port expansion of another 10 Mtpa has also been planned.
Cashmere has agreed to underwrite the capital costs associated with the
expansion and will use 5 Mtpa of the increased capacity in stage 1 and a
further 5Mtpa in stage 2.
There will be allocations for other iron ore
miners and there has already been significant interest from members of the
recently formed Yilgarn Iron Ore Alliance.
The Agreement followed a collaborative process between ESPL and miners who
had expressed an interest in port development.
Cashmere has been an
integral stakeholder in the review consultation process and has committed
substantial resources to the review, continuing analysis and implementation
plans for the upgraded facility.
The Framework Agreement provides that the
multi-user facility will be implemented with EPSL in full control of all
aspects relating to operations, maintenance and access allocation of the
facility.
Ministerial approval will be sought in the process.
Regional
miners will be consulted regarding their tonnage requirements, special
handling needs and timing.
Cashmere has also entered collaboration with Westnet Rail to review rail
infrastructure in the region to ensure that new capability of the port
integrates seamlessly with the rail corridor.
Cashmere is located
approximately 180 kms from the Menzies railhead and can use the existing
standard gauge Leonora-Kalgoorlie-Esperance line.
The study identified cost
effective upgrades can be implemented with the existing line to accommodate
the increased tonnage.
Cashmere intends to use road haulage initially to
Menzies but has planned development of a rail line from its mine to
Menzies.
There are a number of projects in the same vicinity and Cashmere
expects that a collaborative process will emerge.
The Cashmere project is one of the premier iron deposits in the region,
with a JORC Code compliant iron resource of over 1 billion tonnes over
7.5kms of a total of 52kms of banded iron ridges.
The JORC resource has 92%
in the Measured and Indicated category and represents less than 15% of the
total banded iron formations within Cashmeres tenement area.
The depth
used in the estimate was 250 mrl, which is a viable mining depth.
Preliminary metallurgical work has already shown that the asset is viable
and capable of producing a commercial magnetite product with a Fe grade of
68% and SiO2 of < 4.5%.
In addition, Cashmere has been investigating its
JORC compliant 192 Mt of Hematite cap and representative bulk samples have
shown that the sinter Hematite BFO grade material (mag-hematite) can be
produced using a magnetic stream, with a 42% weight recovery, and
concentrate grading at Fe 65% and Si02 < 4.5%.
Compared to magnetite
production, this Hematite stream should be significantly cheaper to
establish and have lower operating costs.
Cashmere is also near completion of its Hematite DSO program, with the
results due in December 2010.
Approvals for the project are advanced, with Level 2 second stage
environmental studies completed, Native Title agreements in place, Heritage
surveys completed and with granted Mining Leases.
Cashmere has strong
community and environmental values and plans to work closely with
stakeholders.
Cashmere is currently finalising the Bankable Feasibility Study of the DSO
component of its project, which it expects to have finalised in Q1 2011.
A
Prefeasibility study of Hematite cap material is also expected in Q1 2011.
Cash flow from the initial DSO operation will be used to fund the Companys
further exploration and production plans for its other materials.
"A key barrier to the development of a range of projects in Western
Australia is access to infrastructure.
The construction of the multi-user
facility at Esperance and upgrading of the rail corridor will be of immense
benefit to all resources companies operating in the region.
As we are
preparing for production, the establishment of a clear pathway to market is
a major milestone for the Company.
We are excited by our recent study
results suggesting viability not only of the magnetite resource but also
for the Hematite resource." said Dr Martin Chapman, Corporate Director of
Cashmere Iron.
"Cashmere intends to use Esperance port initially for its DSO operations
and remains committed to the development of the Oakajee Port.
It is planned
that Oakajee will be used for the shipments of our beneficiated Hematite
and later magnetite product.
Oakajee is pivotal development for Western
Australia and will allow the Mid West region to become a major iron ore
precinct.
We applaud our Premiers commitment to driving the project
forward.
The new facility at Esperance will complement Oakajee, and allows
this state have world class resource infrastructure system " stated Mr
David Hendrie Chairman of Cashmere Iron.
Ends
To download a full copy of this media release please click here:
http://esp.gewru.com/download/files/12414/1274240/Cashmere%20on%20track%20for%20DSO%20operation%20from%20WA%20iron%20ore%20project%20in%20.pdf
For further information please contact:
Felicity Nuttall/David Tasker
Professional Public Relations
T: 08 9388 0944/ 0430 184 599
E:
About Cashmere Iron Limited
Cashmeres 100% owned Cashmere Downs Project has the potential to be one of
the largest single iron deposits in the Mid West region of Western
Australia, with class leading weight recoveries.
It has a JORC Code
compliant iron resource of over 1 billion tonnes (92% in the
Measured/Indicated category) over 7.5kms of a total of 52kms of banded iron
ridges within Cashmere Downs.
This JORC resource assessment represents
less than 15% of the banded iron formations within the Cashmeres tenement
area.
The Project is located 480km east and 585km northeast of the ports of
Geraldton and Esperance respectively.
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