Name of the Project
Corruna Downs iron-ore project.

Location
The project is located 40 km from Atlas Iron’s Mt Webber project, in the Pilbara region of Western Australia.

Client
Atlas Iron.

Project Description
The Corunna project has mineral resources of 64.1-million tonnes grading 57.2% iron. The ore reserve is estimated at 21.1-million tonnes grading 57% iron.

A definitive feasibility study (DFS) has shown that the project can potentially deliver four-million tonnes a year of lump and fines direct-shipping iron-ore over an initial mine life of five to six years.

Mining is expected to be undertaken using a proven mining contractor to mine four openpits using conventional drill-and-blast, truck-and-excavator, and load-and-haul methods.

The envisaged processing plant is a semimobile, dry crush and screen plant, typical of those used at other Atlas operations. The plant will produce a minimum of four-million tonnes a year of lump and fines, and be owned and operated by a contractor. The plant, run-of-mine and product yard will be located at the base of the Corunna Range.

Product will be hauled from the mine to Utah Point by road train using a haulage contractor. The DFS assumes road trains will travel from the mine to the outskirts of Marble Bar, at which point they will meet the Marble Bar road and continue into port along existing sealed roads.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
The initial capital expenditure, based on a production capacity of up to five-million tonnes a year, is estimated at between A$47-million to A$53-million, including contingency.

Duration
Subject to Atlas making an investment decision in the March quarter of this year, first ore on ship from the Corunna project is targeted for the March 2018 quarter.

Latest Developments
Atlas Iron has deferred the development of its Corunna Downs mine, with the miner instead aiming to increase production from its Mt Webber operation.

Atlas approved the development of the Corunna Downs project in February.

The company has deferred the Corunna Downs development, owing to the prevailing market conditions and the approvals process taking longer than expected.

The deferral will enable Atlas to further derisk the project in anticipation of improved market conditions, MD Cliff Lawrenson has said.

Instead, Atlas will investigate an upgrade of the Mt Webber operation, increasing production from seven-million tonnes a year to nine-million tonnes a year, with the incremental production processed at the recommissioned Mt Dove site.

Lawrenson has said the Mt Webber upgrade was a low-cost option for the company that retained productive capacity without major capital expenditure, and that recommissioning the Mt Dove plant and expanding Mt Webber’s production would deliver a range of economic and production benefits.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Atlas Iron, tel +61 8 6228 8000, fax +61 8 6228 8999 or email atlas@atlasiron.com.au.