IRON ore hopeful Polaris Metals has signed a memorandum of understanding with the Esperance Port Authority as part of its continued studies on the Yilgarn iron ore project.
A prefeasibility study on the project completed in July assumed the export of iron ore through Fremantle Port’s Kwinana bulk handling facilities.
However, the company said the Esperance Port may offer an alternative in terms of a larger ship size and more rapid development of the land side infrastructure to meet export target dates.
As part of ongoing optimisation studies, the company will work with the Esperance Port Authority to identify the operating and capital costs associated with exporting ore through the berth at Esperance.
Independent consultants are undertaking a study of the Esperance shipping option to a prefeasibility level.
Once the study is completed, the preferred port option will be selected and studies will continue to refine the requirements and costs.
The company did not rule out exporting through both ports, but said it will depend on product type.
Studies in conjunction with rail providers are also continuing to identify access requirements to the ports.
As part of the Yilgarn project stage one development, Polaris hopes to begin mining at the Carina deposit in 2010.
In August, the Perth-based company signed a MoU with the Port of Fremantle over exports from the Yilgarn project.
Polaris also took an option over eight hectares of LandCorp ground adjacent to the proposed new Berth 5 at the Kwinana bulk jetty to secure sufficient stockpile and storage space for the export of iron ore.
The company said port options needed to be finalised before the planned bankable feasibility study can formally begin.
Environmental, metallurgical, geotechnical and hydrogeological studies at Yilgarn are continuing in the meantime.
Shares in Polaris Metals were up 0.5c this morning to 15.5c.
POL Price at posting:
15.5¢ Sentiment: Hold Disclosure: Held
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