Western Desert Resources has started investigating gaining access to loading facilities at Bing Bong on the Gulf of Carpentaria, and has entered into an agreement with Xstrata Zinc (Mount Isa Mines Limited).

The outcome from the facilities is the potential to accelerate Western Desert's production and export of iron ore with shipments expected late 2012 to early 2013, while also reducing the company's capex requirements to an estimated AUD 50 per annualized tonne of iron ore.

Mr Norm Gardner MD said that his could be the single most important development for the company since finding the project

The ore would be supplied from Western Desert's Roper Bar Iron Ore Project, while shipping through the established facility would reduce the immediate requirement for investment in new pipeline infrastructure previously proposed as a transport option to Maria Island.

Roper Bar currently has a JORC Resource of more than 310 million tonnes of iron at 39.9% iron, which includes a high grade direct shipping ore component of 14.5 million tonnes.

(Sourced from www.proactiveinvestors.com.au)