Atlas Iron Limited [ASX Code: AGO]
ASX RELEASE 14 APRIL 2009
RIDLEY MAGNETITE PROJECT: PRELIMINARY FEASIBILITY STUDY COMPLETE
Atlas Iron Limited [ASX Code: AGO] is pleased to report on the outcomes of the Preliminary Feasibility Study (PFS) for its 100%-owned Ridley Magnetite Project, located 75km east of Port Hedland in the Pilbara region of Western Australia.
Key outcomes from the PFS include:
?This is truly a world-class project,? commented David Flanagan, Atlas? Managing Director. ?The combination of a very long mine life, significant resource upside, the ability to produce a high quality concentrate and its strategic location close to Port Hedland will ensure that the Ridley Project is developed.?.
The completion of the PFS represents the culmination of two years work incorporating Diamond drilling, metallurgical test work, process development and mine planning managed by Atlas in conjunction with its consulting engineer, Engenium. The PFS mine plan envisages a truck-and-shovel open pit operation delivering ore to the concentrator via a system of in-pit crushing stations and conveyors, at a rate of over 48 million tonnes per annum. This is sufficient to produce 15 million tonnes per annum of blast furnace grade magnetite, at an average grade of 68.3% Fe.
The project will utilise its own 330MW power station. The current port loading option is for a concentrate pipeline delivering the magnetite product 20km offshore to a floating trans-shipment facility. The total estimated workforce required on site at the project will be approximately 740 people. The estimated peak workforce during the construction phase will be approximately 960 people.
The estimated capital requirement for the establishment of the project is A$2,972 million including contingency of A$250 million. The annual average operating cost is estimated at A$36.22 per tonne of concentrate, or A$12.64 per tonne of ore mined.
A more detailed analysis of the PFS? key findings has been released in a separate announcement today.
Background Atlas Iron Limited
Atlas is mining at its 100%-owned Pardoo Iron Ore Project, located 75 kilometres by road from Port Hedland, in the Pilbara of Western Australia and completed its first shipment of Pardoo DSO in early December 2008. Atlas is planning to export 1 million tonnes during its first 12 months of operations at the Pardoo Project, growing to 3 Mtpa following commissioning of the Utah Point port facility. When combined with additional export tonnages from its Abydos DSO Project, the Company is targeting exports at an annualised rate of 6 Mtpa in 2010, growing to 12 Mtpa by 2012.
For further information please contact
David Flanagan, Managing Director Mark Hancock, Chief Financial Officer
Tel (08) 9476 7900
Average US Dollar / Australian Dollar exchange rate used for PFS
A$$1 = USD$0.669
Initial Ore Reserve Statement ? Ridley Magnetite Project
Investors are referred to Atlas Iron Limited?s announcement dated 14 April 2009
READ CORPORATE
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