Name and Location
Nelson Bay River iron project, Tasmania.

Client
Shree Minerals.

Project Description
A prefeasibility study (PFS) on the Nelson Bay River iron project has confirmed the viability of the project to become a producer of iron-ore in north-west Tasmania.

The project has three types of resources – direct shipping iron (DSO), beneficiable low-grade resource (BFO) and magnetite resource.

Shree plans to mine the DSO first, followed by BFO material and the magnetite material.

The DSO requires no beneficiation and has a strike length of about 500 m. It requires no major processing beyond crushing and screening. The BFO has a strike length of about 600 m at the northern end of the deposit. The BFO operation is a transition between the DSO operation and the magnetite production stage.

The BFO is fed by a –3 mm size ore stream, which is upgraded by low intensity magnetic separation (LIMS).

The LIMS will later be used in the coarse cobbing stage for the main magnetite processing plant.

Value
Capital expenditure has been estimated at $4.5-million for the DSO phase and about $2-million for the BFO phase, with subsequent magnetite phases funded from internal accruals.

Duration
Not stated.

Latest Developments
Shree will use the PFS as a basis for completing the feasibility study of the DSO pit, including updating the resources based on 2011 drilling, which, based on observations, is expected to substantially increase DSO resources. Shree aims to obtain all requisite approvals as soon as possible to progress towards production.

The PFS also highlighted several areas that required further technical input before the mining of deep magnetite resources can start. These studies will be conducted during the DSO and BFO production phase and can potentially improve project economics.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Shree Minerals, tel +61 8 6161 2068, fax +61 8 9385 5194 or email info@shreeminerals.com.