Macarthur Minerals Ltd said it has received a positive independent preliminary feasibility study on its Ularring Hematite iron ore project in Australia.

The study showed the potential for a highly profitable operation with a projected mine life of 13 years, with a saleable product of 60% iron ore at 2 million tonnes per year. Operating costs were estimated at AUD 78 per tonne, with capital costs estimated at AUD 2.438 billion. The project is now in the permitting stage.

Mr Alan Phillips president, chairman and CEO of Macarthur commented that this study has been 11 months in development but it was important that we get it right. Macarthur does not want to be just another low grade iron ore producer. Instead we are aiming to deliver a high value iron ore product to the market and to be a Company positioned for the long term. Through beneficiation, we can fully utilise Macarthur’s resource inventory and deliver a plus ten year mine life. Moving forward, Macarthur is looking for ways to reduce the capital required, for example by having the beneficiation plant, power and water infrastructure and even the new mining camp being supplied under a third party build, own, operate model and by exploring common user road and rail infrastructure with other nearby iron ore producers.

Source - Nasdaq

(www.steelguru.com)