RED HAWK MINING LIMITED 5 January 2015
New Pilbara railway negotiations a boost for Flinders Mines WA Pilbara Iron Ore Project Pilbara Iron Ore Project
Western
Australia
Flinders Mines Limited welcomes the Western Australian Government's approval for negotiations to commence that could pave the way for a State
Agreement allowing construction of a new railway to the Company's 100%-owned Pilbara Iron Ore Project (PIOP).
"This milestone approval from WA Premier, The Hon Colin Barnett, has injected new confidence into our ongoing efforts to complete a Bankable Feasibility
Study (BFS) this year for the development of the PIOP",
Flinders Mines' Managing Director, Mr Ian Gordon, said today.
"Worley Parsons is heading up work on the PIOP BFS and are currently on target to have the results of the study delivered to Flinders Mines by the end of June
2015", Mr Gordon said.
"With a clearer path to market via a State Agreement and a positive result from the BFS, we will be able to
determine the returns to our Company's
Anketell
Cape Lambert
Port Hedland
Balla Balla JV Export Facility
shareholders and be in a position to make
an informed decision on whether to proceed with the project", he said.
Dampier
-21°
Karratha
Roebourne
Whim Creek
"Once a positive final investment decision
is achieved and financing is available, PIOP
production is expected to commence late in
2017/early in 2018."
-22°
Millstream Chichester
National Park
Proposed conveyor alignment
PIOP
Proposed
Central Pilbara Railway alignment
Mungaroona Range
Nature Reserve
Flinders Mines last year signed an agreement with the Balla Balla Joint Venture for the provision of rail and port services
for the Company's PIOP. The Balla Balla JV consists of Sydney-based Rutila Resources and Todd Corporation of New Zealand which also is the largest single shareholder in
Flinders Mines with a 19.9% stake.
0 50 km
Tom Price
Karijini
National Park
Rutila, as Manager of the Balla Balla JV, has been invited by the WA Government to negotiate a State Agreement for construction of the new railway linking the proposed
Balla Balla port to Flinders Mines' 25 million
Existing railway
Other proposed railway
Existing port
Other proposed port
tonnes per annum PIOP.
Figure 1 Location of the Balla Balla JV proposed Central Pilbara Railway in the Pilbara region, Western Australia.
Flinders Mines Limited ABN 46 091 118 044 www.flindersmines.com
Level 1, 135 Fullarton Road
Rose Park
South Australia 5067
PO Box 4031
Norwood South
South Australia 5067
telephone +61 8 8132 7950 facsimile +61 8 8132 7999 email info@flindersmines.com
Flinders Mines is one of the last independent iron ore juniors operating in the Pilbara with its wholly-owned PIOP seen as one of the few remaining independent, high-quality hematite iron ore projects of scale left in Australia.
Four weeks ago, Flinders Mines announced a jump in the total PIOP Mineral Resource to 1.04 billion tonnes at 55.6% Fe with a significant 84% of that total being in the 'high confidence' Indicated or Measured categories that forms the basis for mine planning studies as part of the current BFS.
Mr Gordon said "We already have a granted mining lease and we have a Native Title Agreement in place with the Eastern Guruma people who hold determined Native Title over the PIOP mining lease area and areas that are likely to support infrastructure."
The developments mentioned above are a significant step forward for the Company and give us cause to look forward to the monetisation of the PIOP for the benefit of our shareholders.
Ian Gordon
Managing Director
For further information please contact:Ian Gordon
Managing Director
Ph: (08) 8132 7950
Email: info@flindersmines.com
Investor RelationsDuncan Gordon
Executive Director - Adelaide Equity Partners
Ph: (08) 8232 8800 or 0404 006 444
Email: dgordon@adelaideequity.com.au
Head Office
Level 1, 135 Fullarton Road
Rose Park
South Australia 5067
PO Box 4031
Norwood South
South Australia 5067
Ph: (08) 8132 7950
Fax: (08) 8132 7999
Email: info@flindersmines.com
www.flindersmines.com
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