Gindalbie hopes to boost Karara iron production by 50%
Tuesday, 8 April 2008
EMERGING iron producer Gindalbie Metals has launched a six-month feasibility study into a 50% production increase at its flagship Karara magnetite project.
A bankable feasibility study, completed in September last year, outlined a resource of 1.43 billion tonnes at 36.3% magnetite to be mined via openpit.
The BFS projected an annual production rate of 8 million tonnes of magnetite concentrate over 25 years, which is expected to begin in early 2010.
The new feasibility study aims to expand annual production to 12Mtpa of magnetite concentrate.
Development at Karara, in Western Australia’s Mid-West region, is expected to cost about $A1.8 billion and will be conducted with Chinese joint venture partner Anshan Iron & Steel Group (Ansteel).
Ansteel is earning 50% by funding $105 million plus 50% of the total project costs.
Gindalbie shares jumped 8.78% or 6.5c to 80.5c in late morning trade.
GBG Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
