Golden West Resources Receives Environmental Approval for Iron Ore Project

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Researched by Industrial Info Resources (Sugar Land, Texas)--Golden West Resources (ASX:GWR) has received the environmental approval for its Wiluna West iron ore project by the Environmental Protection Authority of Western Australia. The project is believed to be the second-largest direct shipping ore (DSO) of hematite in the mid-Western Australian area and is located approximately 30 kilometres southwest of the mining town of Wiluna.

The development involves constructing an open-pit mine with a processing facility that can produce 5 million tons per year (T/yr) of DSO during its first phase of operations. The ore will be trucked 320 kilometres to Leonara. Golden West also has considered exporting the ore through the proposed development of Oakajee Port and rail.

The company plans to expand the development from its initial 5 million T/yr to an estimated 10 million T/yr by end of 2017. It hopes to export the increased capacity through the Oakajee Port. The second phase of the Wiluna West project also depends on the planned infrastructure development by Yilgarn Iron Producers Alliance (YIPA) of Western Australia. This alliance would upgrade the existing rail links to Esperance Port and co-operate in the planning of Oakajee Port.

An initial total capital expenditure of approximately $220 million has been charted out by the company, which includes the construction of a 200-man accommodation camp for the operational staff of the mine. Golden West assumes an additional investment of about $100 million for the Phase II development of the mining operation.

Golden West also is developing a gold mine in the North Eastern Goldfields, about 40 kilometres south of Wiluna. This smaller project is in its feasibility stage, as Golden West is in negotiations with Apex Minerals NL (ASX:AXM) for the toll treatment of its ore.

Paul Leidich, the project manager for Wiluna West, expects the prompt development of this iron ore project, with timely receipt of the environmental approval. However, the proposed developments of the Esperance Port expansion and Oakajee Port will have a great influence on any iron ore projects in mid-Western Australian region.

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