Radar Iron to acquire Mt Ruby magnetite deposit

THE BOURSE WHISPERER: Radar Iron (ASX: RAD) has reached  an agreement to acquire 51 per cent of the Mount Ruby magnetite deposit in the Innisfail district of Far North Queensland from private company, Developed Iron Ore.

 

Project location. Source: Company announcement

 

An exploration target for the high grade magnetite mineralisation at Mt Ruby of 8 million tonnes to 27 million tonnes at 57 to 68 per cent iron has been estimated.

The acquisition is contingent on Radar completing due diligence including initial confirmatory drilling on the project by April 30, 2013.

Following satisfactory due diligence, Radar will make a cash payment and spend funds on project development to secure a 51 per cent interest in the project.

The company said it has expectations of mining high-grade direct shipping magnetite ore by the second half of 2013 with approvals to do so already in place or pending.

According to the company Developed Iron Ore has already completed project evaluation and mining studies on the project and agreements are in place to enable transport including highway trucking and export through the port of Mourilyan.

Other approvals already in place or pending allow an initial mining rate of 600,000 tonnes per annum.

“This project offers the potential for a near term and substantial cash flow for Radar to benefit our shareholders and provide funds to progress our Central Yilgarn project,” Radar Iron managing director Jonathan Lea said in the company’s announcement to the Australian Securities Exchange.

“The Board is very excited at the opportunities this presents to the company and we will provide further updates as the due diligence progresses.”