Giralia Resources (ASX: GIR) and Haoma Mining (ASX: HAO) have reported the findings of an independent Scoping Study on development options for the Mt Webber iron ore deposit, part of the Company’s Daltons Joint Venture located 150 kilometres south of Port Hedland in the Pilbara region of Western Australia.
The Daltons JV’s Mt Webber deposit has an Inferred Mineral Resource reported on 14 September 2009 of 40 million tonnes @ 57.3% Fe, including 33.8 million tonnes @ 57.9% Fe, 1.44% Al2O3 (63.06% CaFe) in the Main Southern Zone.
The Daltons JV tenements at Mt Webber directly adjoin Atlas Iron Limited’s Mt Webber prospect, which has a reported resource of 43.7 million tonnes @ 57.4%Fe.
The Daltons JV commissioned ProMet Engineers to prepare a Scoping Study for its Mt Webber Iron Ore Project, targeting the production of direct shipping iron ore at 2 million tonnes per year by open pit mining. A number of mining, processing and transport options were considered.
According to the study, tahe Base Case yields a NPV (10%) of A$170 million and an IRR of 53.9% with 30% equity and 70% debt funding.
The estimated capital and operating costs for an owner owned and operated plant and equipment and leasing of mining fleet and contract Trucking
Operating costs A$42.12/ tonne, (A$47.80/ tonne for lease/contract alternative), while capital costs are in the region of A$115 million, (A$49.5 million for lease/contract alternative).
The dry, low alumina ore, >50% lump, waste to ore ratio 0.03:1
ProMet recommend proceeding directly to a Definitive Feasibility Study, targeting production by 2nd quarter 2011.