Another potentially major iron ore player has joined Western Australia’s burgeoning Mid-West resources sector.
ANOTHER potentially major iron ore player has joined Western Australia’s burgeoning Mid-West resources sector.
Local company Golden West Resources has outlined a potential initial 50 million tonnes to 200mt of high grade mineralisation at its Wiluna West iron ore project, 35 kilometres south-west of Wiluna.
The potential resource adds weight to a growing regional resources push for a Wiluna-Meekatharra-Mt Magnet-Mullewa railway line to access either the Geraldton port or a new deep water port at Oakajee, 22km north of Geraldton.
A Snowdon Consulting Group scoping study indicates Golden West’s project is potentially strong and viable.
The findings are based on an assessment of only two of the company’s five known banded iron formations, extending over 125km within the company’s 440 square kilometre holdings.
Significantly, the study concludes that the two BIFs assessed have the potential for 40mt to 60mt of high grade hematite, with a further 120mt to 170mt of hematite-limonite mineralisation at an average grade of around 60 to 65 per cent iron.
In addition, the project has the potential for between 2mt and 3mt of high-grade loose iron ore boulders and scree at surface, suitable for early cash flow by trucking it to Geraldton.
However, Golden West director Gary Hutchinson has declined to speculate.
“Our first priority is to move from concept to proving up a resource,” he said.
Mr Hutchinson confirmed that the company has initiated a marketing program with international steel mills and has commenced logistical studies for an operating iron ore project.
“The scoping study results are an important first level of achievement for us. They provide a layer of confidence moving forward with our final rock chip sampling and other survey work ahead of a major exploration drill program,” he said. “Economic bench-marking within the scoping study has also indicated Wiluna West is potentially strong and viable for project develop-ment, based on the construction of a new rail line to Geraldton or Oakajee.
“Along with other emerging iron ore and mining projects in the region, the results reinforce the urgency for the Mid-West Strategic Infrastructure Forum to accelerate infrastructure planning if the area is to fully develop as a new mineral export province.”
Golden West’s near neighbours include Magellan Metals’ lead mine, which went into production early this year and will produce about 43,000 tonnes per annum of lead concentrates this year, rising to 100,000tpa in 2006.
There are also plans for a $25 million to $40 million refinery to process lead concentrates into lead metal, with an engineering study scheduled for completion before the end of this year.
Just 60km south-east of Wiluna, LionOre is in the midst of a $14 million feasibility study on its Honeymoon Well project, expected to result in an 8mtpa to 10mtpa plant producing 30,000tpa to 40,000tpa nickel from mid 2008.
To the west, Midwest Corp has an agreement with China’s largest iron ore importer, SinoSteel Corp, for the joint development of the company’s Weld Range hematite project, 65km south-west of Meekatharra. The $800 million project has resources of 132mt and the potential for between 400mt and 500mt at up to 65 per cent iron.
Project start up for the 15-20mtpa project was originally planned for around 2010, but this may change depending on a pre-feasibility by the middle of next year.
Murchison Metals is planning production from the $24 million first stage of its Jack Hills project, 350km north-east of Geraldton, in December this year with the first ore being shipped in the first quarter 2006.
Stage one annual production will begin at 1.2mt in 2006, rising to 1.8mt in 2007 and 2mt by 2009. New reserves estimates are expected next month that could see 9mt of reserves delineated from the current inferred/measured resource of 67mt. Golden West, which has 43 million shares on issue trading around 24 cents, suspended itself from the ASX last week pending the release of its scoping study, but is now back on the trading lists.
