Altura and Atlas increase Pilbara reserves
THE DRILL SERGEANT: Pilbara-focused Atlas iron Joint Venture partner Altura Mining has announced an increase to the Ore Reserve estimate for the Mt Webber Direct Shipping Ore project.
The standings for each partner in the Mt Webber JV are 30% Altura Mining / 70% Atlas Iron.
The new JORC compliant Ore Reserve estimate for Mt Webber represents a 33% increase, or 6.22 million tonnes, over the initial estimate of 19.01 million tonnes the company announced last September.
The ore reserve upgrade is the result of an infill and evaluation drilling program Altura carried out on the Ibanez and Gibson deposits.
The company said it expects additional upgrades to the Reserve once drilling programs on the Gibson and Fender deposits are completed during the current financial year.
The current Mt Webber JV Ore Reserve estimate of 25.23 million tonnes of DSO material represents 32% of Atlas Iron’s current North Pilbara reserves.
Atlas views Mt Webber will be a key contributor to its production target of 12 million tonnes by 2012 and beyond.
Altura has commenced negotiations with Atlas in order to form a Joint Operations Agreement (JOA) for the development and mining of the Mt Webber JV deposit.
The proposed commencement date for Mt Webber is late 2012 or early 2013, subject to all necessary approvals, with both joint venture partners working towards a suitable agreement to allow both parties to agree on the decision to mine.
Altura said the JOA is a vital step for it in securing an agreement to mine and additionally provides the company a market access point for its share of the DSO production, which is expected to be in the vicinity of 1 million tonnes per annum.
Atlas increase North Pilbara reserves by 50%
Meanwhile the folk over at Atlas Iron headquarters have announced a 50% increase in DSO Reserves for its combined North Pilbara projects.
The new Reserve stands at 79.3 million tonnes at 57.8 per cent iron, and is inclusive of depletion from mining in the past 12 months.
The North Pilbara projects comprise the Mt Webber JV with Altura as well as the Pardoo and Wodgina mining operations and the Mt Dove, Abydos and McPhee Creek development projects.
“Atlas is now an established iron ore producer and exporter with strong customer relationships,” Atlas Iron managing director David Flanagan said in the company’s announcement to the Australian Securities Exchange.
“The company has achieved significant growth in resources and reserves in the same period where we expanded production by 600%.
“The whole team are to be congratulated on a brilliant result.”
Atlas is now exporting consistently at a rate of six million tonnes per annum and is targeting a ramp up to an export rate of 12mtpa by December 2012, as it commences mining at its other North Pilbara projects being Mt Dove, Abydos and Mt Webber.