Cazaly Resources said that 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 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 4.6 million tonnes per annum through Esperance port in the second year of the mine's operation.

The explorer placed a price tag of USD 59.6 million on the project plus USD 104.4 million deferred until stage two. The company has placed a net present value on the project of USD 372 million and said that it is estimating payback in less than two years with a 106% 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 company said that "The project is ideally located, has good local community support and can be quickly brought into production.” It added that "Cazaly has commenced discussions with several potential partners regarding financing."

(Sourced from thewest.com.au)