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FerrAUS Limited
Developing the FerrAUS Pilbara Iron Ore project and serving the industry too
It goes without saying that any iron ore focused miner with a wholly-owned, strategic foothold in an under-explored, highly prospective part of the Pilbara region, Western Australia, is in a highly enviable position.
FerrAUS Limited, the ASX-listed emerging developer fiercely committed to adding shareholder value through the discovery and development of mineral deposits, is one such company. Today we look at its FerrAus Pilbara Project [made up of the Robertson Range Area and the Davidson Creek Area] spanning more than 540 square kilometres, currently boasting a total JORC iron ore resource of over 297 million tonnes. In tackling this exciting project, the FerrAUS strategy for generating shareholder value is simple and effective:
- Taking on projects that are undervalued or unrecognized by the market
- Taking on projects that are simple and do not involve substantial technical or operation risks
- Taking on projects that can be brought into production in a relatively short timeframe
- Taking on projects that do not need investment of a large amount of capital
- Taking on projects that may be enhanced by skills of the management team
This company continues to diligently advance its work in the Pilbara down the path to production and, in addition, its efforts to better the Pilbara iron ore industry for junior miners.
Working in Pilbara
In March, 2009 FerrAUS held a direct shipping ore resource (under JORC) totalling 43.0 million tonnes. Then on April 24, 2009, the company received consent from the Western Australian Government to mine its tenements located within the Jigalong Aboriginal Reserve in the East Pilbara, adding to initial mining at Robertson. The consent followed recommendation from both the Jigalong Community and the Nyiyaparli Native Title Claimant Group. By October 2008 the company posted an increase to 123.4 million tonnes. Just two months later this was updated to 150.1 million tonnes, and about a year ago, in June, 2009, FerrAUS had a 166.6 million tonnes resource between Robertson and Davidson. As of March this year, this project had enjoyed a resource build of over 110 million ounces in under a year, hitting 277 million tonnes. In early March this year, the company announced that it had lifted its Pilbara iron ore resources by 66 per cent and the high grade component of +55 per cent iron ore was up 15 per cent from 167 million tonnes to 191.3 million tonnes. If ever there was proof that the FerrAUS exploration and development strategy works wonders, this resource build was it.
“FerrAus Limited is targeting more than 300 million tonnes of iron ore resource by the end of 2010 and we have many untested targets on the FerrAus tenements,” Mike Amundsen, Managing Director, told press.
“It is very exciting to be able to confirm that FerrAus is working with world class deposits that will underpin a competitive production rate necessary to support long life infrastructure.”
He said that the new resource estimates would bolster the company’s planned Pre-Feasibility Study [PFS] and Feasibility Study—both slated for completion within the year.
“With much of the medium grade ore positioned above the high grade ore, the PFS will examine the likely significant improvement in the overall strip ratio of mining operations. Most of the medium grade material will be mined in any event. This medium grade ore was not considered as a resource in the recently announced scoping study,” Amundsen said.
On May 24, the company announced its Pre-Feasibility Study reverse circulation (RC) infill drilling results for Davidson. Having completed 18,648 metres in 180 drill holes since commencing the study in January, 2010, Amundsen said that these results, “will contribute data for the upgrade of resources to an indicated category required for the PFS.”
“Within the next month we are also expecting to receive results from additional drilling at the Mirrin Mirrin Prospect.”
On June 16, 2010, FerrAUS announced an impressive 116 per cent increase (updating the previous 66 per cent increase) for its FerrAus Pilbara Project. This saw the company reach 297.2 million tonnes —a seven per cent increase on that previous resource statement made in March.
“These good results confirm the extent and continuity of the mineralisation and builds on what is already a substantial resource,” Amundsen told press.
“We are aiming to prove up a total resource of 400 million tonnes by the end of this calendar year with continuing exploration drilling of the many targets yet to be tested.”
With the Mirrin Mirrin drilling results being processed and the company remaining well on track to complete its Pre-Feasibility Study in mere months, hoping to reach its 15 million tonnes per annum production target, a look back on the last year-or-so suggests that FerrAUS is certain to hit each and every goal it sets. Meanwhile, as development of the FerrAUS Pilbara continues to impress, the company is also well-timed and positioned to enjoy construction and improvements underway with port and rail to provide the exportation paths necessary when its project reaches production.
Talking infrastructure
Established port and rail infrastructure doesn’t come much better than that of Pilbara, and the expansion plans for Port Hedland are already well known, but it is important to consider access and use for junior miners too, in order to best-serve the entire iron ore industry in the region. FerrAUS has been more proactive and instrumental in assuring this than most and, along with Atlas Iron Limited and Brockman Resources Limited, founded The North West Iron Ore Alliance (NWIOA) in 2007.
“Collectively, these companies have the potential to develop long-term iron ore production and export businesses capable of delivering up to 50 million tonnes per annum of production by 2013,” the NWIOA states.
“The members of the NWIOA have agreed to cooperate by working together to enhance and accelerate the development of the junior iron ore sector to take advantage of the current strong growth cycle in the global iron ore industry. Key areas of focus include infrastructure access and development, statutory approvals, Government relations and building strong relations with communities in the Pilbara region.”
Of course, in order to deliver more than 50 million tonnes collectively by 2013, these pioneering miners are going to need port and rail access, and following an Australian Competition Ruling on the access to Mount Newman and Hamersley rail lines, the company said, “FerrAus also welcomes the Western Australian Premier’s actions to level the playing field for royalties and the support on a competitive environment based on the sensible sharing of railway infrastructure in the Pilbara.”
In this, it is clear that in addition to building and developing upon its Pilbara project, FerrAUS continues to work to better develop the area’s iron ore industry, infrastructure and work towards making it easier for more junior miners to serve the Chinese market appetite.
What’s next for FerrAUS?
To recap, here we have a highly experienced and respected emerging developer with a proven-effective strategy, a great project ever edging towards production, utter commitment to adding shareholder value and, tellingly, working to better the entire Pilbara iron ore industry. The Pre-Feasibility Study will be complete within the next few months, followed by the Feasibility Study and likely reaching that 15 million tonnes production target in due course. The resource build speaks for itself, and the potential for FerrAUS Pilbara to hit 400 million tonnes looks ever more likely. It’s the stalwart commitment to shareholders and the industry alike which really backs the FerrAUS way of approaching this promising project, and long may its continually impressive chart of progress continue.
ferraus.com
It goes without saying that any iron ore focused miner with a wholly-owned, strategic foothold in an under-explored, highly prospective part of the Pilbara region, Western Australia, is in a highly enviable position.
FerrAUS Limited, the ASX-listed emerging developer fiercely committed to adding shareholder value through the discovery and development of mineral deposits, is one such company. Today we look at its FerrAus Pilbara Project [made up of the Robertson Range Area and the Davidson Creek Area] spanning more than 540 square kilometres, currently boasting a total JORC iron ore resource of over 297 million tonnes. In tackling this exciting project, the FerrAUS strategy for generating shareholder value is simple and effective:
- Taking on projects that are undervalued or unrecognized by the market
- Taking on projects that are simple and do not involve substantial technical or operation risks
- Taking on projects that can be brought into production in a relatively short timeframe
- Taking on projects that do not need investment of a large amount of capital
- Taking on projects that may be enhanced by skills of the management team
This company continues to diligently advance its work in the Pilbara down the path to production and, in addition, its efforts to better the Pilbara iron ore industry for junior miners.
Working in Pilbara
In March, 2009 FerrAUS held a direct shipping ore resource (under JORC) totalling 43.0 million tonnes. Then on April 24, 2009, the company received consent from the Western Australian Government to mine its tenements located within the Jigalong Aboriginal Reserve in the East Pilbara, adding to initial mining at Robertson. The consent followed recommendation from both the Jigalong Community and the Nyiyaparli Native Title Claimant Group. By October 2008 the company posted an increase to 123.4 million tonnes. Just two months later this was updated to 150.1 million tonnes, and about a year ago, in June, 2009, FerrAUS had a 166.6 million tonnes resource between Robertson and Davidson. As of March this year, this project had enjoyed a resource build of over 110 million ounces in under a year, hitting 277 million tonnes. In early March this year, the company announced that it had lifted its Pilbara iron ore resources by 66 per cent and the high grade component of +55 per cent iron ore was up 15 per cent from 167 million tonnes to 191.3 million tonnes. If ever there was proof that the FerrAUS exploration and development strategy works wonders, this resource build was it.
“FerrAus Limited is targeting more than 300 million tonnes of iron ore resource by the end of 2010 and we have many untested targets on the FerrAus tenements,” Mike Amundsen, Managing Director, told press.
“It is very exciting to be able to confirm that FerrAus is working with world class deposits that will underpin a competitive production rate necessary to support long life infrastructure.”
He said that the new resource estimates would bolster the company’s planned Pre-Feasibility Study [PFS] and Feasibility Study—both slated for completion within the year.
“With much of the medium grade ore positioned above the high grade ore, the PFS will examine the likely significant improvement in the overall strip ratio of mining operations. Most of the medium grade material will be mined in any event. This medium grade ore was not considered as a resource in the recently announced scoping study,” Amundsen said.
On May 24, the company announced its Pre-Feasibility Study reverse circulation (RC) infill drilling results for Davidson. Having completed 18,648 metres in 180 drill holes since commencing the study in January, 2010, Amundsen said that these results, “will contribute data for the upgrade of resources to an indicated category required for the PFS.”
“Within the next month we are also expecting to receive results from additional drilling at the Mirrin Mirrin Prospect.”
On June 16, 2010, FerrAUS announced an impressive 116 per cent increase (updating the previous 66 per cent increase) for its FerrAus Pilbara Project. This saw the company reach 297.2 million tonnes —a seven per cent increase on that previous resource statement made in March.
“These good results confirm the extent and continuity of the mineralisation and builds on what is already a substantial resource,” Amundsen told press.
“We are aiming to prove up a total resource of 400 million tonnes by the end of this calendar year with continuing exploration drilling of the many targets yet to be tested.”
With the Mirrin Mirrin drilling results being processed and the company remaining well on track to complete its Pre-Feasibility Study in mere months, hoping to reach its 15 million tonnes per annum production target, a look back on the last year-or-so suggests that FerrAUS is certain to hit each and every goal it sets. Meanwhile, as development of the FerrAUS Pilbara continues to impress, the company is also well-timed and positioned to enjoy construction and improvements underway with port and rail to provide the exportation paths necessary when its project reaches production.
Talking infrastructure
Established port and rail infrastructure doesn’t come much better than that of Pilbara, and the expansion plans for Port Hedland are already well known, but it is important to consider access and use for junior miners too, in order to best-serve the entire iron ore industry in the region. FerrAUS has been more proactive and instrumental in assuring this than most and, along with Atlas Iron Limited and Brockman Resources Limited, founded The North West Iron Ore Alliance (NWIOA) in 2007.
“Collectively, these companies have the potential to develop long-term iron ore production and export businesses capable of delivering up to 50 million tonnes per annum of production by 2013,” the NWIOA states.
“The members of the NWIOA have agreed to cooperate by working together to enhance and accelerate the development of the junior iron ore sector to take advantage of the current strong growth cycle in the global iron ore industry. Key areas of focus include infrastructure access and development, statutory approvals, Government relations and building strong relations with communities in the Pilbara region.”
Of course, in order to deliver more than 50 million tonnes collectively by 2013, these pioneering miners are going to need port and rail access, and following an Australian Competition Ruling on the access to Mount Newman and Hamersley rail lines, the company said, “FerrAus also welcomes the Western Australian Premier’s actions to level the playing field for royalties and the support on a competitive environment based on the sensible sharing of railway infrastructure in the Pilbara.”
In this, it is clear that in addition to building and developing upon its Pilbara project, FerrAUS continues to work to better develop the area’s iron ore industry, infrastructure and work towards making it easier for more junior miners to serve the Chinese market appetite.
What’s next for FerrAUS?
To recap, here we have a highly experienced and respected emerging developer with a proven-effective strategy, a great project ever edging towards production, utter commitment to adding shareholder value and, tellingly, working to better the entire Pilbara iron ore industry. The Pre-Feasibility Study will be complete within the next few months, followed by the Feasibility Study and likely reaching that 15 million tonnes production target in due course. The resource build speaks for itself, and the potential for FerrAUS Pilbara to hit 400 million tonnes looks ever more likely. It’s the stalwart commitment to shareholders and the industry alike which really backs the FerrAUS way of approaching this promising project, and long may its continually impressive chart of progress continue.
ferraus.com
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