The stock price of Murchison Metals climbed this morning after announcing an upgrade for its 50 per cent-owned Jack Hills project to three billion tonnes with work underway exploring further potential at the site.
The stock price of Murchison Metals climbed this morning after announcing an upgrade for its 50 per cent-owned Jack Hills project to three billion tonnes with work underway exploring further potential at the site.
The company said the resource increase was the result of the recently completed exploration program, underway since April this year, and exceeded the previously announced exploration target.
Murchison, which shares the project with Japan's Mitsubishi Corporation through their jointly owned company Crossland Resources that is developing the project, said Jack Hills hosts the largest iron resource in the fast emerging Mid-West iron ore province and is confident that Jack Hills will be a large scale, mult idecade project yielding substantial cash flows and economic value.
Murchison executive chairman, Paul Kopejtka said the size and quality of the Jack Hills Resource will underwrite significant future value for Murchison shareholders.
"This Resource increase has shown that Jack Hills is the premier deposit in the mid-west iron ore province, with a substantial future production profile of international significance," Mr Kopejtka said.
"The sheer size of Jack Hills, coupled with the pivotal role that our 50 per cent owned infrastructure business OPR will play in unlocking the value of mid-west iron ore deposits, demonstrates the pre-eminent role Murchison has in the development of the mid-west iron ore province.
"We expect that the output from Jack Hills will form a leading part of the foundation tonnages exported via the port and rail infrastructure to be constructed by OPR.
"I look forward to the final BFS for the project, due to be completed in 2010, confirming the potential we see at Jack Hills".
Shares in Murchison were up 14 cents, or 6.54 per cent, to $2.28 at AEST1306.
Full announcement below:
ASX ANNOUNCEMENT - MURCHISON METALS LIMITED
ASX CODE: MMX
RESOURCES EXCEED EXPECTATIONS WITH 3.0 BILLION TONNES AT WORLD CLASS JACK HILLS PROJECT
Murchison Metals Limited (Murchison) is pleased to announce a significant Resource increase at the Jack Hills Project in which it holds a 50% interest through Crosslands Resources Ltd (Crosslands).
Total JORC compliant Mineral Resources at Jack Hills now stand at 3.0 billion tonnes.
Key highlights include:
- Major increase in overall project tonnes - Jack Hills is now a large-scale, long life project
- Confirmation of 3 high value iron products
- A high iron yield to concentrates exhibited by the Beneficiation Feed Material (BFO) material
- Open at depth for both BFO and Direct Ship Material (DSO)
The total Mineral Resource is 3 billion tonnes at 31.7% Fe, more than 67% of which is in the Measured and Indicated JORC categories.
The Resource now comprises BFO of 2.86 billion tonnes at 30.6% Fe, DSO of 110 million tonnes at 56.9% Fe and near DSO material of 39 million tonnes at 45% Fe.
The Resource increase is the result of the recently completed exploration program that has been underway since April this year and has exceeded the previously announced exploration target.
Significantly, Crosslands has reported that the Resource remains open at depth and that additional BFO and DSO exploration targets have been identified in the project area. Work is now underway to better understand the further exploration potential, with an announcement expected in the first quarter of 2010.
Jack Hills hosts the largest iron Resource in the fast emerging mid-west iron ore province of Western Australia. Based on this Resource, Murchison is confident that Jack Hills will be a large scale, mult idecade project yielding substantial cash flows and economic value.
Murchison Executive Chairman Paul Kopejtka said "the size and quality of the Jack Hills Resource will underwrite significant future value for Murchison shareholders.
"This Resource increase has shown that Jack Hills is the premier deposit in the mid-west iron ore province, with a substantial future production profile of international significance," said Mr Kopejtka.
"The sheer size of Jack Hills, coupled with the pivotal role that our 50% owned infrastructure business OPR will play in unlocking the value of mid-west iron ore deposits, demonstrates the pre-eminent role Murchison has in the development of the mid-west iron ore province.
"We expect that the output from Jack Hills will form a leading part of the foundation tonnages exported via the port and rail infrastructure to be constructed by OPR.
"I look forward to the final BFS for the project, due to be completed in 2010, confirming the potential we see at Jack Hills".
The Jack Hills Iron Ore Project is being developed by Crosslands Resources Ltd, which is 50% owned by Murchison.
