South Australia's Largest Magnetite Mine Project Advances Toward Definitive Feasibility

---

Researched by Industrial Info Resources (Perth, Australia)--Iron Road Limited (ASX:IRD) is initiating a definitive feasibility study (DFS) for its Central Eyre magnetite mine and plant project near Warrambo, South Australia. When completed and operational, Central Eyre will be the largest iron ore mine in South Australia, producing an estimated 13 million metric tons per year of magnetite. Having found approximately 1.3 billion tonnes of resources during a prefeasibility study in July 2012, it is expected to start construction in early 2015, creating almost 700 permanent jobs during its operational phase. Iron Road plans to increase the production at Central Eyre to 20 million metric tons per year within three years of becoming operational.

The $2.6 billion project also involves the construction of a 1 million-metric-ton-per year storage and ship-loading facility to export products from the proposed Sheep Hill port. During initial phases, a standard-gauge, heavy haul rail for transportation was considered. However, a recently completed prefeasibility study proposes the more commercially viable option of constructing a 160-kilometer slurry pipeline and a desalination facility of about 27 gigalitres, with a return water line back to the mine site. Iron Road is also considering a joint development with other water customers for the desalination facility. The rail transport option has not been ruled out completely, and might be reviewed again during the expansion phase of the project.

Two design engineering firms have been appointed: Bateman Engineering (Perth) for the mine and processing plant, and Sinclair Knight Merz (Adelaide) for the project's storage and ship-loading. Aaron Dean, the newly appointed Project Manager at Iron Road, has taken over this project and will be leading it through the DFS.

Despite being much smaller than the recently shelved $30 billion Olympic Dam project, Central Eyre is providing hope to the South Australian mining industry. Project cancellations and cutbacks have become almost monthly occurrences in an industry that has been facing the pressure of ever-rising costs, lower commodity prices and a strong Australian dollar. With an estimated peak workforce of 1,500 to 1,800, Central Eyre could be the project that offers a fresh perspective to the South Australian resources industry.

"The final estimated capital costs will be determined upon conclusion of our DFS, but early indications are that the port, if approved, will be cost-competitive," said Iron Road Managing Director Andrew Stocks.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.