take your head outta your butt..

and READ this.

Courtesy of a mate who highlighted this stock to me after doing his own RESEARCH.

WA EXPLORER WORKING ON FEASIBILITY T0 PRODUCE PIG IRON

Sydney - TUESDAY JUNE 36: (RWE Aust Business News)
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OVERVIEW
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Ferrowest Ltd (ASX:FWL) is developing a project aimed at
producing merchant pig iron from iron resources in Western Australia.
Initial production output is expected to be in the range of
500,000 to one million tonnes per annum of high-grade merchant pig iron
in a physical form suitable as feed for electric arc and basic oxygen
furnace steel making.
The project location in Western Australia with its low sovereign
risk, low-cost energy and existing transport infrastructure facilities
will ensure that Ferrowest will be a reliable exporter of iron units for
steel manufacturers in the Asian region.
The primary focus of Ferrowest is the proposed Yalgoo iron
project.
This project aims to investigate, and if feasible, develop a
500,000 tonnes per annum merchant pig iron production facility in the
midwest of Western Australia.
Possible product lines include iron concentrates, hot briquetted
iron (HBI) and merchant pig iron (MPI) in the form of ingots, granules
or nuggets depending on the technology chosen.
The business plan envisages:
* The mining of 2.4 million tonnes per annum of magnetite from
the Yogi iron mineralisation, located 14km east of Yalgoo and 233km from
the Port of Geraldton;
* Beneficiation of the magnetite ore to produce 770,000 tonnes
per annum of concentrate; and
* Conversion of that concentrate into 500,000 tonnes per annum
of value-added iron product using available or emerging technologies
The Yalgoo iron project has solid project fundamentals,
combining:
* Location - proximity to a port and relatively short shipping
distances to Asia;
* Infrastructure - existing key infrastructure;
* Proposed Process - one of several merchant pig iron-making
technologies;
* Proposed product - high-grade, high 'value in use' merchant pig
iron;
* Proposed markets - proximity to growing markets for alternate
sources of iron;
* Potential project lifespan - a large potential magnetite iron
mineralisation; and
* People - an experienced, multi-disciplined team.
Ferrowest has reported that in Phase 2 drilling results (in-fill
drilling), it has been consistent with Phase 1.
First representative iron ore concentrate will be sent to Japan
this month for testing as the pre-feasibility study on Yalgoo iron
project progressing towards completion.
Meanwhile the market for merchant pig iron remains strong.
Ferrowest reported last month that the Phase 2 drilling program
at Yogi consisted of 26 RC holes (including diamond precollars) for a
total of 4,320m and eight diamond holes for a total of 953.1m.
Work is currently underway to produce the first identified
mineral resource estimate classified and reported in accordance with the
JORC Code for the Yogi tenement.
This work should be completed this month and will underpin the
iron ore requirements for the Yalgoo project.
The company is currently preparing the first representative iron
ore concentrate from the Yogi deposit for dispatch to Japan for testing
in both the ITmk3 and FASTMET/FASTMELT merchant pig iron making
technologies.
Ferrowest is continuing to advance the work on the
pre-feasibility study.
While most aspects are well advanced, the high demand on
laboratory time in Western Australia at the moment due to the resources
boom has delayed completion of the study, which is now expected to be
finalised in the next quarter.

SHARE PRICE MOVEMENTS
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Shares of Ferrowest yesterday rose 3.5c to 75c. High for the
year is 93.5 and low 17c. The company has 25.7 million shares on issue
with a market cap of $19.3 million.
On June 20, Kobe Steel (the developer of the ITmk3 iron making
technology) and Cleveland Cliffs said they had struck a deal that will
see the first full scale ITmk3 plant built in the USA.
The ITmk3 technology is the preferred technology of four
possible processes being considered by Ferrowest.
Ferrowest welcomes this development as a positive step toward
the commercialisation of the ITmk3 technology.
The ITmk3 technology produces merchant pig iron (MPI) in the
form of 96pc Fe iron nuggets that are very easy to handle, store and
transport.
It is also a premium product for end users (primarily electric
arc furnace steel makers) due to its very low contaminant levels and
high storage density.
The MPI price C&F in South Korea/Japan for June is $US395 per
tonne which is 30 per cent higher than the long-term price assumptions
used by Ferrowest in its Scoping Study for the Yalgoo project in
December.
Ferrowest plans to produce 500,000 tonnes per annum of MPI from
Yalgoo.
The company remains very confident about its strategy to target
MPI as its primary product and believes that developments in the world
steel market are continuing to vindicate its business plan.
Ferrowest still expects to release its first resource estimate
for the Yogi iron ore deposit before the end of this month.
Also, the company expects the pre-feasibility study to be
completed before the end of July.
The Yogi iron ore deposit underpins the proposed Yalgoo iron
project.
Following the release of regional aeromagnetic surveys by the
Department of Industry & Resources, the company identified a possible
extension of the Yogi deposit to the north of its existing granted tenure
and has applied for an exploration licence over the area
that is contiguous with its current tenement package.
This has the potential to add about 3km to the existing 27km
strike length at Yogi.

BACKGROUND
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Ferrowest Ltd joined the ASX list in July 2006.
The company has been developing the Yalgoo iron project, aimed at
producing merchant pig iron from the Yogi magnetite mineralisation near
Yalgoo.
Proposed initial production is 500,000 tonnes per annum.
The plan to process the iron ore to pig iron on the mine site is
premised on emerging mine site-based technologies and excellent existing
infrastructure servicing the site.
The resulting value-added merchant pig iron product will be a
relatively high-margin, high-quality, low-volume product for export to
electric arc and basic oxygen furnace steel making plants worldwide.
ENDS
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