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1 Mt Ruby DSO Project Acquired High Grade DSO Project in Queensland Mining planned to commence in Q4, 2013 Infrastructure accessible and ready ACN ASX Release 8 February 2013 Suite 2, 12 Parliament Place West Perth WA 6005 PO BOX 902 West Perth WA 6872 P F E info@radariron.com.au W Contact: Jonathan Lea Managing Director E jlea@radariron.com.au Phillip Wingate Company Secretary E pwingate@radariron.com.au Directors: Alan Tough - Chairman Jonathan Lea - Managing Director Ananda Kathiravelu - Non-Executive Issued Capital: 81,340,070 Ordinary Shares 23,050,000 Unlisted Options ASX Code: RAD (Fully Paid Ordinary Shares) Media Enquiries: Fortbridge Bill Kemmery Radar Iron Ltd (ASX: RAD) is delighted to announce to investors an agreement to acquire 51% of the Mount Ruby Magnetite deposit in the Innisfail district of Far North Queensland from private company, Developed Iron Ore Pty Ltd (DIO). An exploration target for the high grade magnetite mineralisation at Mt Ruby of 8Mt-27Mt at 57-68% Fe has been estimated using extensive surface sampling data (averaging 64.2% Fe) along with geophysical interpretation. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource. Mining of high grade direct shipping magnetite ore is planned for the second half of 2013 with approvals in place or pending. Mt Ruby lies within 120km trucking distance from the port near Innisfail. DIO 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 600,000tpa with mining expected to commence in the December Quarter The mineralisation is open to the west and north and planned drilling in coming months will test for potential extensions. Preliminary financial evaluation of the project suggests that total development capital required is $15M with production cash cost estimated at $60 per tonne FOB. These numbers will be validated and refined in the due diligence process. Given these expected production costs and sales value of the product, an early payback is considered likely. The acquisition is contingent on Radar completing due diligence including initial confirmatory drilling on the project by April 30, Following satisfactory due diligence, Radar will make a cash payment and spend funds on project development to secure a 51% interest in the project. Radar will also issue equity to DIO on delineating certain resources and upon the joint venture commencing mining. Radar s Managing Director, Jonathan Lea said, 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. The Board is very excited at the opportunities this presents to the Company and we will provide further updates as the due diligence progresses.

2 Figure 1: Radar Project Areas Figure 2: Project Location

3 Project Details Project lies 5km north of Kennedy Highway and approximately 85km directly east of the Mourilyan Port near Innisfail. Trucking distance to port approximately 120km. Agreements in place to permit 600,000t per year to be trucked and shipped through the port. The Mt Ruby Project comprises a single Mining Lease of approximately 3.7 hectares with a non-binding right to acquire the surrounding Exploration Permit for Minerals for an approximate area of 56 square kilometres. The Mt Ruby Project magnetite is a skarn deposit, generated from the intrusion of granite into a massive limestone with the subsequent development of high grade magnetite. The Mt Ruby magnetite is exposed on surface as a low lying ridge of approximately 200 by 80 metres. The mineralisation dips under shallow cover outside the outcropping ridge with geophysical exploration indicating the deposit could total 500m by 300 metres in size. The orebody has an interpreted minimum thickness of 60 metres based on two historical drill holes which ended in magnetite. 93 geochemical sampling results from surface, from an historic trench and down a 20m deep shaft at Mt Ruby confirm the presence of a high grade magnetite with results between 52.5% Fe and 69.5% Fe with an average grade of 64.2% Fe. The samples were consistently low in silica, alumina, sulphur and phosphorus. Using extensive surface sampling data along with geophysical interpretation, the exploration target for the high grade magnetite mineralisation at Mt Ruby of 8Mt- 27Mt at 57-68% Fe has been estimated. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource. The mineralisation in part can be shipped directly after crushing and the proposed drilling will better indicate the proportion of the mineralisation that does not require upgrade. Metallurgical work has shown that the lower grade zones can be readily beneficiated to a high grade product. Preliminary design of the processing plant and equipment has been completed with an indication that coarse crushing and dry magnetic separation can be used to upgrade lower grade material. A low bond work index is indicated from test work. Mining approvals are pending and there are no obvious likely obstacles to prevent commencement in Approval has been granted for B-double truck access from the mine to the port via the Kennedy and Palmerston Highways for 600,000tpa with potential to increase this to greater than 1mtpa in later years. A Heads of Agreement is in place for allocation at Port Mourilyan of 2 x 45,000 tonne shipments per month with the potential for further allocations. Space at the port has been granted for the stockpiling of iron ore. Preliminary financial modelling suggests an FOB cost of up to $60/t with a total initial capital cost of $15M. Further work will be undertaken during the due diligence process to validate the assumptions behind these figures. Costs, following Radar spending its initial $3,000,000, will be paid in proportion to the parties joint venture interests (Radar 51%, DIO 49%).

4 Figure 3: Mt Ruby, north end of ridge looking south Figure 4: High grade magnetite at Mt Ruby

5 Agreement Terms 1. Following a $100,000 option payment Radar has until April to complete due diligence, during which time it must drill 10 RC holes. 2. Upon successful due diligence Radar will pay $5M to DIO and commit $3M to the development of the project, upon which it will then acquire a 51% interest in the Mt Ruby Project. Following this the parties will contribute to further development in accordance with their joint venture interests. 3. Radar will issue DIO with fully paid ordinary shares to the value of $1,000,000 upon each of Radar announcing a JORC reportable resource of a minimum grade of 60%Fe and commencement of mining. 4. The agreement includes joint venture terms typically found in an agreement of this nature, including dilution and management. Future Plans The due diligence process has commenced to validate and better define the technical and commercial aspects of the project. This process will include drilling of at least 10 RC drilling holes in the coming month. Following the successful due diligence process, Radar will work in conjunction with DIO to rapidly obtain all approvals and to finalise contractual arrangements aimed at enabling mining to commence in Yours faithfully, For or on behalf of Radar Iron Ltd Jonathan Lea Managing Director The information in this report accurately reflects information prepared by Competent Persons (as defined by the Australasian Code for Reporting of Mineral Resources and Ore Reserves). It is compiled by Mr Jonathan Lea, an employee of the Company who is a Member of The Australasian Institute of Mining and Metallurgy with the requisite experience in the field of activity in which he is reporting. Mr Lea has sufficient experience which is relevant to the style of mineralisation and the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Lea consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.