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http://news.smh.com.au/breaking-news-business/peculiar-knob-gets-sa-govt-approval-20110708-1h5ui.html

Peculiar Knob gets SA govt approval
July 8, 2011 - 11:44AM

WPG Resources' shares have shot up after it received South Australian government approval to develop Peculiar Knob, the nation's highest grade undeveloped iron ore deposit.

The deposit is located within the Defence Department's Woomera Prohibited Area, which is being partially opened up for mining.

An estimated $1 trillion worth of mineral wealth could be unlocked after the federal government in May endorsed a plan to use the minerals-rich weapons testing zone, an area almost as large as England.

WPG's shares had shot up 3.5 cents, or 3.98 per cent, to 92.5 cents by 1132 AEST.

The SA government has approved WPG's flagship mine southeast of Coober Pedy and a storage and export facility at Port Pirie.

Site works will begin this month with sales expected to start in 2012.

Peculiar Knob had a reserve grade of 63.2 per cent iron and would produce 3.3 million tonnes a year of iron ore fines for at least six years, WPG said in a statement.

The company is also allowed to develop the Buzzard deposit at Hawks Nest within Woomera, which the Defence Department previously opposed because it was a joint venture with a subsidiary of China's state-owned Wugang Iron and Steel.

"It will be South Australia's newest mine, and will transform the company from explorer to producer status," WPG said in a statement.