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
The alliance agreement between iron-ore developer Flinders Mines and members of the Balla Balla joint venture (JV), comprising Rutila Resources and Todd Minerals, will not be extended beyond the end of the year.

The agreement, which was signed in March 2014, would have provided Flinders’ PIOP access to the JV’s proposed port and rail infrastructure facilities.

Flinders Mines said that the parties had the option to extend the agreement by six months if it was likely that the projects would be developed within a reasonable time after December 31.

The company previously announced the suspension of expenditure on its bankable feasibility study (BFS) at PIOP until a shareholder meeting to vote on Todd Minerals’ offer for the project. The meeting will be held in August.

Flinders and Todd gained Foreign Investment Review Board approval for the A$65-million transaction in June. Todd had also launched a takeover offer for Balla Balla JV partner Rutila.

The New Zealand firm aims to develop the 25-million-tonne-a-year iron-ore resource and the proposed Balla Balla port and railway as an integrated project.

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.