Jupiter Mines has announced it has begun a feasibility study for its $1.6 billion Mount Ida magnetite project in the Yilgarn region.
Jupiter Mines has announced it has begun a feasibility study for its $1.6 billion Mount Ida magnetite project in the Yilgarn region.
The study will be based on annual production of 10 million tonnes of magnetite concentrate with a grading of more than 68 per cent Ferrous.
Jupiter said it would propose to transport the concentrate along existing rail lines from Menzies to the Port of Esperance.
Former BHP Billiton boss and Jupiter chairman Brian Gilbertson said Mount Ida was emerging as a world-class magnetite project.
A scoping study released in March found the project would be financially and technically robust, with a $1.6 billion value and operating costs of $62.78 per tonne of magnetite concentrate.
SRK and a team of consuktants have been appointed to undertake the study, and drilling will begin in July.
"Mount Ida has a substantial resource, nearby rail and accessible port infrastructure, highly experienced project management and is ideally placed to supply major steel producers in Asia," Mr Gilbertson said.
"With the financial backing of the Pallinghurst co-investors, Jupiter is superbly placed to develop Mount Ida as part of its goal of becoming a major supplier of raw materials in the steel industry.
Jupiter has a feasibility study already under way on the Mo8unt Mason hematite project, which has an estimated capital cost of $65 million to $75 million at 1.5Mtpa.
Also, Jupiter said its 49.9 per cent-owned Tshipi manganese project was on schedule for first production mid-2012.
The total capital cost for Tshipi is estimated to be $200 million.
"Tshipi and Mount Ida are the foundations of what we are confident will be a rapidly growing global mining house that will supply raw materials to steel makers around the world," Mr Gilbertson said.
"Jupiter's growth strategy reflects the fact that steel is at the heart of world economic growth.
"The company has the expertise and financial strength to acquire and develop further world class assets which will enable it to capitalise on this growing demand for steel making materials, generating handsome returns for shareholders in the process."
At 12:13PM (WST) Jupiter's stock had dipped 4.35 per cent, to trade at 44 cents.
