http://argonautlimited.com/files/MN%20230611.pdfWPG Resources ?...

http://argonautlimited.com/files/MN%20230611.pdf

WPG Resources ? final contracts awarded
WPG Resources (WPG) has awarded all major contracts for the development of its Peculiar Knob project. The previously outstanding site civil construction contract (including building of the 96km haul road) was awarded to Lucas Earthmoving. Two key approvals remain before site works at both mine and port can commence:
 The Mining and Rehabilitation Program (MARP, lodged with the SA Government in November 2010) is awaiting approval from the South Australian Department of Primary Industries and Resources (PIRSA), the mining regulator.
 The South Australian Development Assessment Commission (DAC) has recommended the approval of WPG?s DA application. It now requires Ministerial assent.

Both approvals are expected in July 2011. Draw down on the Deutsche Bank funding facility is conditional on receipt of these approvals. We believe WPG has got the key ingredients required for a successful bulk commodity business. Peculiar Knob is one of (if not) the highest grade (~63%Fe), undeveloped iron ore deposits in Australia. The Company has developed an integrated infrastructure solution from mine to port, involving rail and road haulage to Port Pirie, where it will have capacity to export up to ~7Mtpa. As a low capital intensity producer (~$43/t), it has the
ability to capitalise on buoyant pricing imminently. WPG compares favourably against other iron ore peers, representing value across a range of metrics. Buy (valuation $1.40).