Perth iron ore junior Territory Iron has announced approval for the development of its Frances Creek iron ore mine in the Northern Territory following a preliminary feasibility study, which highlighted the strong economic viability of the project.
Perth iron ore junior Territory Iron has announced approval of the development of its Frances Creek iron ore mine in the Northern Territory following a preliminary feasibility study, which highlighted the strong economic viability of the project.
Territory Iron Managing Director Doug Stewart said the company was reviewing its options for funding the mine and that direct capital costs were estimated to be $10 million.
"Our aim now is to firm up the numbers in the feasibility study, finalise negotiations with contractors and construction engineers, and commence mining operations as quickly as possible."
Mr Stewart said the decision to mine at Frances Creek also reflected the strong market demand for iron ore and current high iron ore prices. He said the proximity to existing road and rail infrastructure, and soon-to-be-completed port facilities at Darwin, were important commercial advantages for the project.
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Territory Iron Announces Mining Go-ahead for Frances Creek Project
Preliminary Feasibility Study Highlights Economic Viability of Northern Territory Mine
Territory Iron Limited (ASX: TFE) is pleased to announce it has approved the development of its Frances
Creek iron ore mine in the Northern Territory. The approval follows a recently completed preliminary
feasibility study which highlighted the strong economic viability of the project.
Territory Iron Managing Director Doug Stewart said the company was reviewing its options for funding the
mine and that direct capital costs were estimated to be $10 million.
"Our aim now is to firm up the numbers in the feasibility study, finalise negotiations with contractors and
construction engineers and commence mining operations as quickly as possible."
Resource tonnage at Frances Creek has recently been reported at a total of 6.8 million tonnes at 60.6%
Fe with Ore Reserves estimated at 3.5 million tonnes at 61.1% Fe. Resources and Reserves are JORC
compliant.
Mr Stewart said the decision to mine at Frances Creek also reflected the strong market demand for iron
ore and current high iron ore prices. He said the proximity to existing road and rail infrastructure, and
soon-to-be-completed port facilities at Darwin were important commercial advantages for the project.
"This year, we expect to spend $2.6 million to aggressively explore our additional deposits. There is a high
probability of identifying additional reserves which will add significant value to, and extend the life of any
future mine operations. These deposits occur along a 35-kilometre belt of iron prospective host rocks and
are close to the mine sites."
Mr Stewart said Territory Iron continues to have very positive relations with a wide range of stakeholders
in the Northern Territory including the NT government, the Northern Land Council and local industry
participants.
He said Territory Iron was also well-positioned to take advantage of the strong demand for iron ore in the
Asian market through one of the company's founding shareholders, OM Holdings Limited, which has
strong sales links to China.
For further information contact:
Doug Stewart Peter Knight
Managing Director Account Manager
Territory Iron Limited Professional Public Relations
Telephone: +61 8 9483 5100 Telephone: +61 8 9388 0944
E-mail: dstewart@territoryiron.com.au E-mail: pknight@pprwa.com.au