BFS must be getting very close!!!
SP booming
GBG $1.65 +$0.235 +16.61% with
high of $1.795 and low of $1.51 8,855,031 $14,227,880 @ 30-Aug 12:16:01
http://www.gindalbie.com.au/Our+Projects/Karara+Magnetite+Project/default.aspx
Source: Gindalbie Metals website
Karara Magnetite Project (date unknown!!)
The world class Karara magnetite deposit has unique qualities which make it amenable to the production of high quality magnetite concentrates and blast furnace quality pellets, including:
- 1.43 billion tonnes of 36.3% Fe resource (JORC standard);
- >400 metres wide and >350 metres in depth;
- Waste to ore ratio 0.5:1;
- Exceptional uniformity;
- High weight recovery – 41%;
- High concentrate grade – 68.8% Fe with low impurities (0.05%S, 0.01%P, 4.2%SiO2); and
- > 40 year mine life potential at 8 million tonnes concentrates per annum.
Gindalbie is developing the Karara Magnetite Project through a comprehensive 50:50 Joint Venture with Chinese steel producer, AnSteel. The two stage joint venture includes:
Bankable Feasibility Study (BFS) phase
AnSteel and Gindalbie have committed to complete the Bankable Feasibility Study ("BFS") on a 50:50 basis.
Current BFS contemplating:
Mining from conventional opening pit;
Beneficiate ores in the concentrator on site;
Transporting magnetite concentrates to the Port of Geraldton via slurry pipeline or railway;
Magnetite concentrates being shipped to Ansteel’s integrated Bayuquan Steel Mill (in construction), Yingkou, northwest of China;
The concentrates will then be further processed into blast furnace quality pellets in a Joint Venture Pellet Plant; and
Pellets being fed directly into Ansteel’s Bayuquan Blast furnace.
First production of magnetite concentrates and blast furnace grade pellets is scheduled to commence in early 2010 at an initial rate of 8mtpa.
The BFS is due to be completed by August 2007. Once a decision to mine is made, the second stage of the Joint Venture will commence.
Operation phase
The second stage of the Agreement involves project financing, sales and marketing, construction and production. 100% of Karara magnetite concentrates and pellets will be purchased by Ansteel Bayuquan Steel Mill.
While final funding requirements for the project will be determined by the BFS, it is estimated that the capital cost will be over A$1 billion, with the debt/equity ratio structured on a 70% debt : 30% equity basis.
