nice valuation, page-12

Some info on scoping study:

The Study Report on the Hamersley Iron Ore Project was compiled for Winmar by Engenium Pty Ltd (Engenium) as an independent consultant. The Study was the first assessment undertaken on the Project and reviewed various options available for the development of the Project. A range of production rates and logistical solutions were considered. The study results are very encouraging with a number of options available to Winmar for the development of the Hamersley Iron Ore Project.

The report outlined options in the following areas:
• Mining, crushing and concentrating;
• Waste disposal management;
• Accommodation and infrastructure requirements;
• Utilities supply (power, water, fuel, communications); • Haulage logistics;
• Port materials handling facilities;
• Environmental and social impacts; and
• Capital costs, operating costs, and financial modelling.

The potentially economically feasible options have been identified and these options will be investigated in more detail during subsequent testing and assessments.
These options are outlined below:
• 5Mtpa operation utilising road transport from mine to South West Creek; • 5Mtpa operation utilising rail to Port Hedland;
• 10Mtpa operation utilising rail to Port Hedland and/or Anketell Point.

Key Outcomes

The economic modelling indicates that there are a range of development options that could potentially generate positive NPV’s for the Project. The final development option would depend largely on the outcomes of negotiations with third parties for Port and rail access. The largest component of the operating costs for the project relate to the transport between the mine and the port. The following items require investigation in greater detail during the next phase of the project (Pre-Feasibility Study):

• Negotiations with third parties to secure commercially attractive rail freight rates.
• Further Metallurgical test work program (PQ drilling underway).
• Negotiations with third parties to secure port and transport capacity at Port Hedland. • Develop an optimised mining plan for the Project.
• Further develop engineering works for the preferred options.
• Further drilling to determine the characteristics of the ore body.
• Further investigations to establish availability of water for the project.

The Winmar Board are highly encouraged by the outcomes of the Engenium scoping study. Immediate discussions and negotiations on key areas have been actioned as we look to accelerate the development of the Hamersley Iron Ore Project.