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ATLAS IRON LIMITED - ASX: AGO
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Description
Atlas Iron is a dynamic iron ore producer, with a number of key projects strategically located within150 km of the port of Port Hedland in Western Australia.
North Pilbara DSO Projects
Since listing on the ASX in 2004, Atlas has established a competitive advantage in the iron ore sector by gaining a strategic landholding in under-explored regions of the North Pilbara. These exploration tenements, which had long been ignored by the majors, have so far resulted in the discovery of four key Direct Shipping Ore (DSO) iron ore projects within a 150km radius of Port Hedland.
The strategic value of these projects cannot be underestimated. Their proximity to Australia's largest port has enabled Atlas to commence production quickly at a very low capital cost, without the infrastructure barriers faced by potential producers with orebodies further inland. The first operation, Pardoo, shipped its first parcel of ore to China just eight weeks after mining commenced, and continues to successfully deliver ore to port using covered road trains. Similarly, Wodgina commenced production in July 2010, with first ore mined just 18 months after the first exploration hole was drilled.
In comparison, Atlas' competitors in the junior end of the iron ore sector have until recently been battling with a lack of access to infrastructure, which remains vital for any company intending to ship ore to a port.
With two operations currently exporting DSO iron ore, Abydos and Mt Webber will be the third and fourth mines operated by Atlas in the Port Hedland area. These four mines will collectively produce 12 million tonnes of iron ore for export by 2012, a remarkable growth story by one of Australia's most active resources companies.
Also in the North Pilbara, Atlas has a world-class asset in the Ridley Magnetite Project, which is situated on the Pardoo mining leases. With a resource of 2 Billion tonnes and a reserve of 970 million tonnes, Ridley has the potential for a mine life of over 30 years producing high quality concentrate for export.
Southeast Pilbara DSO Projects
Atlas has significantly strengthened its long-term growth prospects with the merger with Warwick Resources in November 2009. The addition of approximately 6,000km2 of highly prospective exploration tenements, including a number of headline projects with potential for long-life DSO mines, has given Atlas an extremely important foothold in the tightly-held Newman area.
The Warwick projects, combined with Atlas' grass-roots Hickman exploration project, give Atlas a number of options around the Newman area. The projects range from those recently granted and as yet undrilled, such as McCamey's North, through to partially explored projects with known DSO enrichment such as Jigalong, and advanced projects which have already received a significant amount of drilling or have resources already estimated, including Warrawanda, Jimblebar Range and Western Creek.
Midwest DSO Projects
In addition to its Pilbara projects, Atlas has an extensive landholding in the Midwest region of Western Australia. These include the premium-grade Mt Gould and Weld Range projects, and a large spread of recent tenement applications which are yet to be explored.
All of Atlas’ Midwest projects lie within the Wajarri-Yamatji Native Title claim, Australia’s largest. As with all the Native Title groups with which it interacts, the Company is working closely with the Wajarri-Yamatji to ensure their heritage is protected during its exploration activities. In this way Atlas can strive towards providing a true win-win situation for regional communities, by protecting important heritage areas and values whilst developing mines which will provide employment, training and income streams for local people.
Although the Midwest projects are lower on the order of development priorities than those in the Pilbara, Atlas is keen to maintain a presence in the area and progress its exploration activities over the next two to three years, in a timeframe which complements the development of the Oakajee Port and Rail infrastructure.
Ridley Magnetite Project
The world-class Ridley Magnetite Project, a 2 Billion-tonne magnetite resource, is strategically located within the Pardoo project area and is 100% owned by Atlas. The Ridley resource consists of banded iron formation (BIF) which forms part of the Ridley Range, with an average in-situ resource grade of 36.5% Fe. The resource, which was estimated by CSA Global consultants, converts into a 970 million tonne reserve capable of producing 330 million tonnes of magnetite concentrate at 68.3% Fe - enough to sustain a world-class mining operation for over 30 years.
Balla Balla Project
Situated near Whim Creek on the Pilbara coast, midway between Karratha and Port Hedland, Balla Balla is an advanced, low-risk, long-life, world-class polymetallic (iron, vanadium & titanium) mining project with diversified income streams and low operating costs. As well as iron ore (titanomagnetite concentrate), it will be the world’s most significant new source of vanadium and a top 10 titanium feedstock producer.
Milestones achieved through extensive development work completed to date include:
* Environmental Ministerial Approval granted;
* Mining tenements granted;
* Long-term (15 year) iron concentrate offtake contracts in place at Hamersley Premium Fines Price (due to vanadium credits);
* Lengthy mine life; 16 year JORC compliant reserves (229Mt), with an excess of 26 year life based on current JORC compliant resources (456Mt);
* Bankable Feasibility Study (BFS) complete for a staged expansion approach, demonstrating robust project economics, according to:
- Phase I – Fe/Ti Circuit (6Mtpa Fe + 0.28Mtpa TiO2 concentrates);
- Phase II – V Circuit (10Mtpa Fe + 0.47Mtpa TiO2 concentrates + 7000tpa FeV-80 alloy).
* Ideally located for gas pipeline access, grid power, highways and a choice of port infrastructure options;
* As a comparison to peers:
- High product to input ratio;
- High plant feed grades;
- Low capital costs; and,
- Low operating costs.
* An abundant water supply.
Mine For
iron ore, aluminium, titanium, vanadium, gold, platinum, manganese,
Location of operation(s)
Western Australia
Address
Level 9, Alluvion, 58 Mounts Bay Rd
PERTH, WA, AUSTRALIA
Phone
(61 8) 9476 7900
Website
Last Updated
3/5/2011
The data on Australian Shares.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.
