West Perth-based Murchison Metals Ltd has completed the baseline study for its Oakajee Iron Ore and rail project, forming part of its overall stage 2 feasibility study for its Jack Hills iron ore project.
West Perth-based Murchison Metals Ltd has completed the baseline study for its Oakajee Iron Ore and rail project, forming part of its overall stage 2 feasibility study for its Jack Hills iron ore project.
The full text of a company announcement is pasted below
Murchison Metals Limited is pleased to announce that it has successfully completed the key Oakajee Iron Ore and Rail Project Multi User - Baseline Study for the development of new rail and port infrastructure in the Mid West region of Western Australia.
The baseline study has been drafted to pre-feasibility study levels and confirms the economic case for the development of new Mid West rail and port infrastructure as part of the planned Stage 2 expansion of Murchison Metals' Jack Hills Project. The study forms an integral part of the overall Stage 2 Feasibility Study for the Jack Hills Project.
Executive Chairman Paul Kopejtka said that completion of the study confirmed Murchison Metals as the clear leader in terms of detailed preparation and planning to commence development of vital new Mid West infrastructure.
"This is another major step forward for the proposed new rail and port infrastructure in the Mid West region and for Stage 2 of our Jack Hills Project," he said.
"We are now on track to be the first company to complete a full detailed Feasibility Study into the development of the new infrastructure for submission to the State Government in the first quarter of 2008, well ahead of other infrastructure proponents."
"The detailed studies now completed have confirmed the viability of multi-user port and rail infrastructure facilities incorporating a new deepwater port at Oakajee and a northern corridor standard gauge rail route to manage the export of up to 45 million tonnes per annum of iron ore utilising two Cape Class berths."
"The studies have also demonstrated the opportunity to expand output to an ultimate capacity of 100 million tonnes per annum and to upgrade the facilities at a later date to include a narrow gauge rail link to Geraldton."
"We look forward to continuing work with important stakeholders in the Mid West region to finalise the Feasibility Study over the course of the next year."
The project team is now completing final reviews of the successful baseline study and continuing work on the important Stage 2 Feasibility Study for the proposed 25 million tonnes per annum iron ore mine at Jack Hills and associated multi-user infrastructure.
The Stage 2 Feasibility Study consists of a Mine Feasibility Study and an Infrastructure Feasibility Study.
Work on the MFS has commenced with the appointment of Calibre Projects as the study engineer for ore processing and mine infrastructure and Snowden Group as its consultant covering mine optimisation, pit design and mining fleet selection. Each of these highly respected organisations is widely recognised in its field and has extensive experience in the Western Australian iron ore industry.
The IFS is also underway, involving shared infrastructure consisting of a northern corridor standard gauge heavy haul railway to the major Mid West iron ore deposits at Jack Hills and Weld Range and a deep water port located at Oakajee, 20 kilometres north of Geraldton.
