Clive Palmer's Australasian Resources has indicated it may be closer to securing funding for its Balmoral South iron ore project with a delegation from China's Hunan group conducting due diligence.

Australasian said the visit, which included a trip to the Balmoral site, was hoped to result in a subsequent agreement between parties on project funding and development.

The company said that "Australasian looks forward to progressing discussions and advancing towards a potential commercial outcome with Hunan in the near future.”

Australasian said it was updating a 2008 feasibility study to reflect prevailing market costs.

(Sourced from The West Australian)