re: Ann: Jack Hills Resource Increases to 3.0...
Thinking - this project will require billions of dollars to develop... Even assuing a 70/30 debt to equity ratio - it will require 600 to 900m more shares on issue.
And then is the question - where is the power !!!
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Jack Hills hits 3Bt Tuesday, 22 December 2009 Kristie Batten
MURCHISON Metals has unveiled a huge resource upgrade for the Jack Hills iron ore joint venture in Western Australias Mid West, with the new resource three times the previous estimate.
The Jack Hills resource has tripled to 3 billion tonnes at 31.7% iron, comprising beneficiation feed material of 2.86Bt at 30.6% iron, direct shipping ore of 110 million tonnes at 56.9% iron and near DSO material of 39Mt at 45% iron.
More than 67% of the resource is in the measured and indicated categories.
The new resource estimate incorporates data from the initial phase of a $A30 million drilling campaign which started in April.
The estimate exceeds the recently set exploration target of 400Mt-1Bt.
The resource remains open at depth and the company believes there is potential for further increases.
Jack Hills stage 1 currently exports 1.7Mt of iron ore per annum.
A bankable feasibility study into the larger stage 2 is due for completion next year and infill drilling is continuing to gather data for mine planning.
The proposed stage 2 operation will see production increase to 25-35Mtpa from 2013.
Jack Hills is owned by Crosslands Resources, a 50:50 JV between Murchison and Japans Mitsubishi Development.
Murchison and Mitsubishi are also 50:50 partners in Oakajee Port and Rail, which is building infrastructure to be used by Mid West miners.
MMX Price at posting:
$2.50 Sentiment: LT Buy Disclosure: Not Held
