Murchison Metals Limited advises that Stuart Hall, Chief Executive Officer of Crosslands Resources Limited (“Crosslands”), today delivered the attached presentation on the Jack Hills Iron Ore project at the Mining the Mid-West Conference in Perth.
The Jack Hills project is operated by Crosslands, owned 50% by Murchison and 50% by Mitsubishi Development Pty Ltd (“Mitsubishi”), a subsidiary of Mitsubishi Corporation of Japan.
As announced on 4 February 2009, the total Mineral Resources at the Jack Hills project now exceed 1 billion tonnes, comprising Direct Ship Ore resources totaling 96Mt @ 58.7% Fe and Beneficiation Feed Ore resources totaling 991Mt @ 34.1% Fe. Crosslands anticipates further resource increases as results from an extensive drilling programme are received.
This significant upgrade of the Jack Hills Mineral Resource has confirmed the world-class status of the project, where plans are well advanced for a Stage 2 mine expansion that will make it the premier largescale, long-life iron ore producer in the mid-west region of Western Australia.
Murchison also anticipates Oakajee Port+Rail (OPR) executing a Development Agreement for the Oakajee port and infrastructure project with the WA Government during the current quarter. Murchison and Mitsubishi each hold a 50% interest in OPR, which was selected by the WA Government as its sole preferred proponent for the Oakajee port development in July 2008.
Execution of the Development Agreement is a key milestone that provides regulatory certainty for the development of the Oakajee infrastructure project, and the Jack Hills Stage 2 expansion.
Murchison is also evaluating the potential for a second iron ore production base at its wholly-owned Rocklea iron ore project in the Pilbara, for which the Company announced a maiden JORC resource of 100Mt grading 59% CaFe (calcined iron) in February 2009, just 10 months after acquiring the tenements. Murchison is extremely pleased with ongoing progress at its core iron ore and infrastructure assets in Western Australia, which provide the Company with a world-class platform on which to build shareholder wealth.
Murchison is in an excellent financial position to pursue quality growth opportunities created by the current market conditions, with no debt and cash reserves of approximately $154.9 million.