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Iron Road sees higher revenue from Central Eyre

1st October 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Iron-ore developer Iron Road Resources expects a A$20-million increase in yearly revenue from its proposed Central Eyre iron project (CEIP), in South Australia, as the definitive feasibility study (DFS) progresses.

The DFS, which will be completed by the end of 2013, has identified additional iron recovery from a gravity circuit that will result in an increase to overall magnetite concentrate size distribution. Operating cost improvements will be achieved through lower power demand and a reduction in associated fixed plant requirements.

Iron Road said in a statement that iron recovery was expected to increase by at least 0.8%, and at current iron-ore prices, this would lead to an additional A$20-million in yearly revenue, with a direct flow through to earnings before interest, tax, depreciation and amortisation over the project life.

Iron Road MD Andrew Stocks noted that the company was pleased with the progress of the DFS to date, adding that the reliable and coarse grained nature of the orebody, coupled with the close proximity to a prime, deep-water port location delivered significant advantages.

“CEIP’s infrastructure solution is designed to be readily expandable, and I expect that over time, it will underpin the major regional development opportunity that exists for large-scale, bulk exports well beyond the first phase 30-million-tonne-a-year capacity.”

Stocks added that improvements to CEIP’s processing circuit also continued to build confidence in the project.

A prefeasibility study, completed in 2011, found that the CEIP could deliver some 12.4-million tonnes a year of iron-ore concentrate at an operating cost of A$59/t. The project was expected to have a capital cost of A$1.7-billion, and would deliver a net present value of some A$1-billion.

The project has a mineral resource of some 3.7-billion tonnes, grading 16% iron.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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