in pre may shed some llight to rapid rise, page-37

For those questioning or concerned about the grades returned from the samples and drilling. Basically 25% can still be processed at a significant profit with todays current Iron Ore prices

Please check out this Preliminary Feasibility Study by Atlas Iron released to the public just under a year ago.
Key Outcomes

http://www.atlasiron.com.au/IRM/Company/ShowPage.aspx?CPID=2006&PageName=Ridley

Concentrate production of 15million tonnes at 68.3%FE
Project Establishment Cost A$2,722Million + A$250Million contigency.
Average real operating cost of $36 per tonne concentrate FOB.
Greater than 30 year mine life

Concentrate production of 15million tones at 68.3%FE means that effectively 3 tonnes of 25%FE Ore needs to be mined to obtain similar concentrate level after production losses. It means that a deposit of at least 1.5billion tonnes would be required! That appears to be inline with the Altas plant throughput of 48.3million tpa

Project Establishment Cost A$2,722Million + A$250Million contigency. A$986 million was for the processing/concentrator plant alone. A 960 man camp and 330MW Powerstaion are other facilities mentioned that Magnetic would also require. Based on the proximity to Perth some of these construction cost could be reduced - particularly transport related costs. Based on my current experience in the Iron Industry in operational and constructionbudgeting type of role you it may be fair to assume a A$1.5-$1.75billion cost for Powerstation, Camp and Concentrator.

What Magnetic does not require is the construction of a 75km pipeline or offshore ship loading facilities. This is because of it's close proximity to rail infrastructure which can feed to several suitable deep water ports.

Another Magnetite Resource Company looking to build a processing plant - Smaller in size but probably just as easy to compare due to it being smaller in size.
http://www.proactiveinvestors.com.au/companies/news/4618

Emerging Western Australian iron ore developer, Emergent Resources, (ASX: EMG) at its flagship Beyondie Magnetite Iron Project upped the mineral resource at Beyondie by a factor of four to 561 Million tonnes @ 27.5% Iron (Fe) during the December quarter.

The December quarter represented a purple patch for the company, yielding the Chinese State Owned Enterprise China Metallurgical Investment Co Ltd (CMIC) successfully completing Due Diligence and entering into a binding agreement to proceed with a A$200m 50:50 Development Joint Venture for the Beyondie Iron Project.

With a placement of shares and options to CMIC, this will provide CMIC with an approximate 15% interest in the Company.

The Agreement has been given shareholder approval and is now subject to Foreign Investment Review Board, and the Peoples Republic of China National Development and Reform Commission approval.

Beyondie is developing into a world class magnetite iron project with the potential produce a high grade magnetite concentrate product.

The Beyondie Development JV will target the commencement of mining operations with an initial targeted production of 3Mtpa of magnetite concentrate escalating to second stage 8Mtpa as soon as feasible.

CMIC has advised that the JV will also seek additional funding over the initial A$200m to achieve the second stage.