re: Ann: Positive Scoping Study for McPhee Cr...
McPhee Creek taking shape for Giralia Thursday, 25 November 2010
PILBARA-focused Giralia Resources has independently verified it can achieve first shipments from its McPhee Creek iron ore property by September 2012.
This follows findings from an independent scoping study which delivered a net present value of $A345 million and an internal rate of return of 47.4% (ungeared) based on a 2 million tonne per annum start-up base case operation utilising owner-operated mining and public road haulage to Port Hedland.
The capital cost, including the cost of a trucking fleet, came in at $129 million, but was reduced to $75.9 million utilising contract road haulage.
Giralia now plans to undertake further drilling, testwork and environmental studies as part of a prefeasibility study to confirm the results and to select the optimum development model.
However, superior returns were made from models utilising road and rail combinations, including via the declared third-party Goldsworthy line, located 100 kilometres away.
With current inferred resources of 210 million tonnes grading 56.2% iron, including 150.6Mt at 63.1% calcined iron, an upgrade is due to be released later this month.
An alternative 10Mtpa rate was also scoped utilising a new 160km rail spur to a third-party rail and returned the best financial model with an NPV of $1.6 billion.
GIR Price at posting:
$3.03 Sentiment: LT Buy Disclosure: Held
