Australia's Eastern Iron Develops First Iron Ore Project in Victoria

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Researched by Industrial Info Resources Australia (Perth, Australia)--A definitive feasibility study is advancing Eastern Iron Limited's (ASX:EFE) (New South Wales, Australia) Nowa Nowa iron ore project in Victoria, Australia. The development of the project will see the company become the first iron ore producer in the state of Victoria, while the majority of the iron ore projects are concentrated in the northwest Pilbara region of Western Australia.

The project is located in the town of Nowa Nowa in East Gippsland, Victoria, and is about 250 kilometers from state capital Melbourne. The Victorian government performed exploration activities in the area in early 1950's, but the project was not developed until it was taken up by Eastern Iron.

The project is supported by the local community, which suffered from the decline of the timber industry. The project is expected to generate 120 jobs during its operational phase. It is located close to a number of regional centers, and hence will not require an onsite camp or a "fly-in fly-out" work force. It also received $300,000 in state government funding to help finance the definitive feasibility study in October 2013.

The Nowa Nowa iron ore mine would have the advantage of existing infrastructure, due to its location, and its access to eastern roads and the port of Eden in New South Wales. The company has entered a memorandum of understanding with South East Fibre Exports Limited (SEFE) to use the wharf and ship loader facility at the port, which is now used for exporting woodchips. The facility can be used for exporting bulk commodities and has a capacity for 50,000- to 60,000-ton vessels.

The project is being designed to mine an estimated 4.8 million tons of ore, to produce approximately 800,000 tons of direct shipping ore over an initial mine life of eight to 10 years. The processing facility would consist of a two-stage crushing and screening circuit and low-intensity magnetic separators. Eastern Iron appointed design engineering and consulting firm Engenium (Perth) to assist in the scoping and definitive feasibility study.

Eastern Iron expects the Nowa Nowa project to commence construction by fourth quarter of this year, and aims to deliver the first shipment by the second or third quarter of 2015.

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