Western Australian-based Territory Iron Limited announced today that the Northern Territory government will provide $2.86 million towards infrastructure at the Port of Darwin.
Western Australian-based Territory Iron Limited announced today that the Northern Territory government will provide $2.86 million towards infrastructure at the Port of Darwin.
The infrastructure is key to the company's development of the Frances Creek iron ore mine, which is due to commence production in early 2007.
The NT government funding, through the Darwin Port Corporation, will assist in the construction of conveyors from the train unloading facility to Territory Iron's iron ore stacker.
The funding will be recovered through a $1 per tonne levy on all ore shipped from the port by Territory Iron.
Territory Iron Managing Director Doug Stewart said the funding announcement demonstrated the NT government's clear vision for opening up development of the Territory.
THE FULL MEDIA RELEASE APPEARS BELOW.
Wednesday, 15 March 2006
MEDIA RELEASE
Territory Iron Secures Part Funding for Key Port Infrastructure
Acquires Additional Iron Ore Tenements near Flagship Frances Creek Project
Territory Iron Limited (ASX: TFE) is pleased to announce that the Northern Territory
Government has agreed to provide part funding for infrastructure at the Port of Darwin. The
infrastructure is required as part of the development of the Frances Creek Iron Ore Mine, which
is expected to commence production in early 2007.
The Government, through the Darwin Port Corporation, will provide up to $2.86 million towards
the construction of conveyors from the train unloading facility to Territory Iron's iron ore stacker.
The conveyors are in addition to infrastructure already being provided by the Corporation
including a rail bottom dump facility, currently being commissioned, and a bulk ship loader,
which is under contract to be completed by the end of 2006. The funding will be recovered
through a $1 per tonne levy on all ore shipped from the port by Territory Iron.
Territory Iron Managing Director Doug Stewart said the funding announcement demonstrated
the Government's clear vision for opening up development of the Territory.
"They understand that infrastructure is key to opening up development of the Territory," Mr
Stewart said. "The Darwin to Adelaide railway line and the current and planned expansions to
the Darwin Port facilities exemplify this.
"We are delighted that the Government, through the Darwin Port Corporation, has agreed to
extend its infrastructure provision to getting the ore right to our stacker. Iron ore is all about
infrastructure. This addition to our already modest infrastructure requirement is very welcome."
Additional Tenements
Territory Iron has also earned a 51 per cent interest in Exploration Licence 23824, held by
Softwood Plantations Pty Ltd, following the spending of $250,000 of exploration expenditure by
Territory Iron on the tenement in 2005. This was a condition of a farm-in agreement.
As a result of the exploration, Territory Iron has defined a JORC-compliant Inferred Resource of
1.03 million tonnes at an average grade of 63 per cent calcined Fe+Mn at the Millers prospect.
Under the joint venture with Softwood, Territory Iron can further increase its equity in the
tenement to a total of 75 per cent.
In addition, Territory Iron has signed an agreement with Woodleigh Nominees under which
Territory Iron has the exclusive right to explore and mine iron ore from tenement A24268. The
tenement is approximately 30 square kilometres and is adjacent to existing Territory Iron ground.
The tenement contains the iron ore prospective Wildman Formation rocks that extend southeast
from the proposed Ochre Hill mine site, as well as the southern half of the Saddle Extended
deposit, which is known to host sizeable tonnages of iron mineralisation.
Territory Iron Managing Director Doug Stewart said the acquisitions were an important step
forward in realising the company's strategy of establishing a dominant position in this iron ore
prospective region.
"Millers is a manganese-rich iron deposit that lies about 10km north of the Ochre Hill deposit
which we are planning to mine in late 2006, early 2007," he said.
"We believe there is potential to double the tonnage at Millers and we will be investigating the
marketability of selling manganese-rich ore from Millers into the market place.
"The Woodleigh deal opens up ground with excellent iron ore prospectivity for our exploration
team to have a hard look at this field season."
Territory Iron recently announced it would proceed with development of its Frances Creek iron
ore mine located 190 kilometres south of Darwin. Ore Reserves at Frances Creek have currently
been estimated at 3.5 million tonnes at 61.1% Fe, while Resource tonnage at Frances Creek is
6.8 million tonnes at 60.6% Fe. Resources and Reserves are JORC compliant.
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
About Territory Iron
Territory Iron is an emerging iron ore producer which listed on the ASX in March 2005. The
company has drilled part of the previously mined Frances Creek iron ore mine in the Northern
Territory. Since the drilling, feasibility studies have indicated that the project is economic, based
on advantages which include local infrastructure, bulk handling facilities being constructed at the
Port of Darwin, and a well-priced iron ore market.
