Name and Location
Pilbara iron-ore project (PIOP), Australia.

Client
Flinders Mines.

Project Description
The PIOP is located 175 km south of Dampier, in Western Australia’s Pilbara region. It comprises the Blacksmith and Anvil tenements.

The Blacksmith tenement, which hosts the cornerstone Delta deposit targeted for Flinders’ maiden production, is located between several existing and proposed developments.

The PIOP currently hosts a Joint Ore Reserves Committee-compliant mineral resource of 917.3-million tonnes at 55.2% iron, based on a 50% cutoff grade. The resource comprises 190.5-million tonnes of Brockman iron deposit (BID) at 56.3% iron, 545.5-million tonnes of Detrital iron deposit (DID) at 55.2% iron and 181.3-million tonnes of Channel iron deposit (CID) at 54.0% iron.

Flinders is targeting production of 15-million tonnes a year from startup.

A definitive feasibility study is currently under way to evaluate Flinders’ proposed 15-million-tonne-a-year operation.

Value
Flinders’ capital expenditure estimate for the PIOP is A$1.1-billion.

Duration
Not stated.

Latest Developments
Flinders Mines announced a A$14.3-million capital raising at the end of February to start with a bankable feasibility study (BFS) and detailed design studies for its PIOP.

The funds raised will also be used to conduct further drilling on the PIOP to upgrade the existing inferred resources to indicated status and to provide working capital for the company.

The capital raising comprised a placement of about 274-million fully paid ordinary shares at A0.025 a share to raise about A$6.8-million, an a fully underwritten 1:7 nonrenounceable entitlement issue to raise about A$7.5-million.

The placement was made to sophisticated and professional investors under Flinders’ existing 15% placement, which means that no shareholder approval for the proposed issue was required.

It was expected that the placement shares would be issued on March 10 and that these shares would rank equally with existing Flinders shares.

The entitlement issue would comprise an offer of about 300-million new shares on the basis of one new share for every seven existing shares, at A0.025 a share.

Moving forward, Flinders said it would examine broader funding strategies to finalise the BFS and progress with project development.

Meanwhile, Flinders has signed an infrastructure agreement for port and rail access for the PIOP.

The company will be a foundation user of the surplus capacity of the Balla Balla mine export facility, which Rutila Resources and Todd Minerals are developing.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Flinders Mines tel +61 8 8132 7950, fax +61 8 8132 7999 or email info@flindersmines.com.