Cazaly moves to Plan B for Parker RangeThe West Australian May...

Cazaly moves to Plan B for Parker Range
The West Australian May 12, 2011, 10:27 am



Cazaly moves to Plan B for Parker Range

The West Australian ?

Cazaly Resources says it plans to export iron ore from its Parker Range project 400km east of Perth through Fremantle and Esperance after having been denied export space at Kwinana's bulk handling port.

WestBusiness revealed on Monday that Cazaly had lost out to Mineral Resources in securing valuable capacity at the port following a decision by the State Government and Mineral Resources.

Cazaly's feasibility study released today said it would instead initially export 1.4 million tonnes per annum through Fremantle, then 4.6mtpa through Esperance port in the second year of the mine's operation.

The explorer placed a price tag of $59.6 million on the project plus $104.4 million deferred until stage two.

The company has placed a net present value on the project of $372 million and says it is estimating payback in less than two years with a 106 per cent internal rate of return.

It is targeting first shipment in the first quarter of 2012.

Cazaly's feasibility study described Parker Range as a technically and financially robust project with the ability to produce a highly marketable iron ore fines product for many years.

"The project is ideally located, has good local community support and can be quickly brought into production," the company said.

"Cazaly has commenced discussions with several potential partners regarding financing."
Shares in the company were off 1.5 cents, or 4.29 per cent, to 33.5 cents at 10.25am after emerging from a four-day trading halt.