Junior mineral explorer Cullen Resources has a piece of the West Pilbara Iron Ore Project which has a maiden JORC of 70 million tonnes at 54.8% iron of proven and probable reserves, though its 30% owned Catho Well Channel Iron Deposit.

Catho Well is part of the WPIOP, in the Mt Stuart Joint Venture managed by the Australian Premium Iron Joint Venture.

Major iron ore player Aquila Resources is a 50% owner of the APIJV, with the reserve estimate based on an updated mineral resource estimate from October 2010.

Ore derived from the Mt Stuart JV contributes to the main, blended product stream maintaining an average 57.1% iron throughout the life of the WPIOP stage 1 mining operations.

The WPIOP is based on eight channel iron deposits, with the Mt Stuart JV representing 16% of this.

The WPIOP stage 1 ore reserve is reported as two products, which includes:

1. Product 1, representing the main production stream maintaining an average 57.1% iron throughout the life of the WPIOP stage 1 mining operations; and

2. Product 2, a lower grade product stockpiled throughout the mining operation and shipped following the completion of Product 1 ore sales, based on an annual average product grade of 55% iron.

The updated resource estimates used in determining the ore reserve has resulted in a low waste to ore ratio, with the final pit designs, for all deposits, producing a waste to ore strip ration of 1.13:1 for the WPIOP stage 1 mine development

Mr Chris Ringrose MD of Cullen said that "At this stage, no decisions have been taken by the Participants in the MSJV as to the scope of the development of the Catho Well CID. The feasibility study for the MSJV Project will progress with the incorporation of this maiden Reserve and the underlying mine schedule, as well as additional work undertaken."

The feasibility study is scheduled for completion in early 2011, and will include a scenario which assumes ownership of Cullen’s run-of-mine ore will be transferred at the mine gate.

(Sourced from www.proactiveinvestors.com.au)