IronClad, with key infrastructure and mining contracts signed for Australia's next producing iron ore mine at Wilcherry Hill, is on track to produce first ore in the current March quarter.

Work will start later this month on IronClad Mining’s Wilcherry Hill deposits near Kimba on SA’s Eyre Peninsula.

The Wilcherry Hill iron ore project, a 80:20 Joint Venture between IronClad and associated company, Trafford Resources will ship Direct Shipping Ore for sale to Chinese steel mills in the second quarter of the 2012 calendar year.

The first two years of production from Stage One of the Wilcherry Hill project has already been sold to the Chinese steel mills under a comprehensive sales contract and marketing agreement.

First year of production involves 1 million tonnes per annum of DSO for export to Asia, increasing up to 2 million tonnes per in the second year.
IronClad Mining’s executive chairman, Mr Ian Finch, said the Company remained on track to commence maiden production from the mine in the current March quarter, with first product to be exported to Chinese customers in the June quarter.

A feasibility study for Stage One of the project established that, with an average iron ore price of AUD 140 per tonne FOB into China and initial operating costs of around AUD 85 per tonne, the project would provide IronClad with margins of AUD 50 per tonne and an operating cash flow of around AUD 80 million per year at full production during the first stage.

Stage Two involves an increase in production to 5 million tonnes of iron ore concentrate per annum.

The construction start up follows the South Australian Government’s Christmas Eve announcement of formal approval for IronClad’s Program for Environmental Protection and Rehabilitation, the final statutory hurdle for the project.

(Sourced from proactiveinvestors.com.au)