Strategic Joint Venture Increases Ferrowests' Iron Ore Portfolio in Northern Territory

---

Researched by Industrial Info Resources (Perth, Australia)--Ferrowest Limited (ASX:FWL) (Perth, Western Australia) has entered into a joint venture agreement with Arafura Resources Limited (ASX:ARU) (Perth, Australia) for the Yalyirimbi iron ore project. Located in the Northern Territory, the tenement was acquired by Ferrowest in March 2013 from Ngalia Resources.

The move by the company is expected to generate profits to continue its diversified project options. The strategic option for the partnership enables the companies to benefit by advancing the Yaliyirimbi project to provide an operation that can be commissioned relatively quickly, while keeping capital expenditures low.

The joint venture agreement and acquisition secures Ferrowest a 60% stake in the 1.8 million-tonne-per-annum direct shipping ore (DSO) haematite mine and processing plant. The tenement is located near Alice Springs in the Northern Territory, and it is likely to transport the ore via rail to a port located in the Northern Territory's capital city of Darwin.

The DSO project plays a critical role in helping to transform Ferrowest from explorer to producer, ahead of the construction of the Yogi Iron Project and the Eradu MPI (merchant pig iron) Project. Ferrowest currently names the Yogi and Eradu projects as the principle iron ore opportunities in its portfolio.

The proposed Yogi Mine and processing plant, which is fully owned by the company, is a magnetite resource located 14 kilometres east of Yalgoo, Western Australia. Currently, the project is transitioning from pre-feasibility to a bankable feasibility.

The initial studies indicate that the company will be processing approximately 4.5 million tonnes per annum, of which 3 million tonnes will be exported. The other 1.5 million tonnes will be processed through Western Australia first, at a value-added merchant pig iron plant at Erudu.

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.