re: Ann: Another major increase to McPhee Cre... Another resource upgrade for Giralia
Tania Winter
Friday, 3 December 2010
PILBARA iron ore explorer Giralia Resources is continuing its run of resource upgrades, this time reporting a 50 million tonne jump in numbers at its McPhee Creek property to 260Mt grading 56.2% iron.
The new estimate incorporates drilling from the main range deposit, but further upgrades are tipped once activities accelerate at McPhee West which has already returned a result of 100 metres at 56.7% iron and 0.03% phosphorous.
The company has been quick to grow numbers at McPhee Creek which started out in December last year with a maiden resource of 52.1Mt. This was increased to 161.4Mt in July and to 210Mt some two months later.
Combined direct shipping ore resources at Giralias McPhee Creek and nearby Daltons-Mount Webber deposits now total more than 300Mt.
An independent scoping study at McPhee Creek has already confirmed it to be a viable proposition based on a start-up base case 2Mtpa operation, starting in September 2012.
The study delivered a net present value of $345 million and an internal rate of return of 47.4% (ungeared) utilising owner-operated mining and public road haulage to Port Hedland.
The capital cost, including the cost of a trucking fleet, came in at $129 million, but was reduced to $75.9 million utilising contract road haulage.
Superior returns were made from models utilising road and rail combinations, including via the declared third-party Goldsworthy line, located 100 kilometres away.
An alternative 10Mtpa rate was also scoped utilising a new 160km rail spur to a third-party rail and returned the best financial model with an NPV of $1.6 billion.
- Forums
- ASX - By Stock
- Ann: Another major increase to McPhee Creek JORC
re: Ann: Another major increase to McPhee Cre... Another...
-
- There are more pages in this discussion • 6 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add GIR (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
LU7
LITHIUM UNIVERSE LIMITED
Alex Hanly, CEO
Alex Hanly
CEO
SPONSORED BY The Market Online