Like to see GBG become the 3rd major player in the development of Oakajee port and rail because the current combo is dragging its heels. Given GBG and MMX will benefit the most out of the new port/rail expansion it only makes sense.
Summary of yesterdays news below too.
PERTH (miningweeky.com) - ASX-listed Gindalbie Metals on Friday reported that the joint venture (JV) partners in the Karara project, in Western Australia, were preparing to launch a scoping study on the proposed expansion of the iron-ore project.
Gindalbie and its JV partner Ansteel would investigate the possibility of increasing the Karara project?s start-up production level from ten-million tons a year to potentially 16-million tons a year.
The initial phase of the scoping study would evaluate options and identify the likely viability for the expansion of the Karara project, ahead of moving to further stages of the study.
The iron-ore developer said in its quarterly production repot for the period ending March, that starting on the study now would allow the execution phase to follow on closely from the current project, enabling the project development team for the stage one construction phase to remain in place for the stage two expansion.
To date, capital spend on the Karara JV has reached some A$855,1-million.
However, Gindalbie has previously warned that the capital costs for the A$1,9-billion project could increase by as much as 30%, as its construction cost came under review.
The increase in the cost reflected the higher costs of materials, labour, and fuel, as well as an increase in the quantities of materials used for the construction of the magnetite concentrator.
The scope expansion relating to the port and power line servicing the Karara projects were expected to account for some A$125-million of the increased forecasted capital cost, which would set the project up for its first expansion phase.
Karara has previously reported that the review of the construction cost and operating cost estimate would be completed by mid-year.
GBG Price at posting:
$1.01 Sentiment: Buy Disclosure: Held
