The type of deal Flinders could hook into...

The type of deal Flinders could hook into IMO....

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AQUILA RESOURCES LIMITED (ASX: AQA)

West Pilbara Iron Ore Project Pre-Feasibility Study Delivers Positive Results



Highlights:



· PFS confirms technical and financial viability of a 25 million tonne per annum iron ore project in the West Pilbara

· Capital expenditure is estimated at US$3.9 billion for dedicated Project facilities, including provisions for EPCM, contingency and Owners’ costs

· Operating costs of under US$20 per tonne FOB, including royalties, at 25Mtpa

· Sensitivity analyses indicate that the Project is capable of producing 30Mtpa in Stage 1 with a marginal increase in capital expenditure

· Annual EBITDA of US$1.3 billion at 30Mtpa using expected 2008 iron ore prices

· PFS recommends construction of 160km of new rail and a new deep water port facility at Cape Preston, subject to commercial agreement with other parties with interests in this port

· Subject to approvals, construction could commence Q1 2010 with first shipments in 2012



Carbon steel resources producer and developer, Aquila Resources Limited (ASX:AQA “Aquila” or “the Company”) is pleased to announce positive results from the Pre-Feasibility Study (PFS) of the first stage of the West Pilbara Iron Ore Project (”the Project”), being developed by its 50% owned Australian Premium Iron Joint Venture (“API JV”).



Aquila began its iron ore initiative in 2004 and the completion of the PFS is a major milestone in its progression. The PFS has focused on the selection of preferred port options, development of the iron product, definition of infrastructure at proposed mine areas and development of mine-to-port transport corridors. The Company will propose that the API JV now proceed to a more definitive, bankable feasibility study.



The PFS has confirmed the technical and financial viability of a development based on a 25 million tonnes per annum (“Mtpa”) iron ore operation, with 160km of new railway to a new open access, deep-water port facility at Cape Preston, subject to commercial agreement with other parties with interests in this port. Sensitivity analyses indicate that the Project is capable of producing 30Mtpa in Stage 1 with a marginal increase in capital expenditure.



Subject to approvals, construction on Stage 1 of the Project could commence in early 2010 with first shipments in 2012. The pathway toward production outlined in the PFS includes the proposed submission of an Environmental Impact Assessment by the fourth quarter of 2008, with a Definitive Feasibility Study due to be completed in the second quarter of 2009.



Source: Aquila Resources Limited