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The planned expansion of the Jack Hills mine is aimed at realising the significant potential resource upside of the project. In April 2009, Crosslands launched a $23 million exploration program - one of the nation’s largest drilling programs - to expand and upgrade the established resource. The on-going exploration work is being undertaken in parallel with mine feasibility studies to support the expansion. Metallurgical work undertaken by ProMet Engineers has indicated that high quality, high value concentrate can be produced from the BFO resource using conventional crushing and grinding followed by wet low intensity magnetic separation. Flowsheet optimisation has identified the potential to include the economic recovery of the large low grade haematite resource, further enhancing resource upside and project economics.
Crosslands is building a portfolio of high quality customers in China and Korea who have a strong interest in signing long term offtake agreements for the significant concentrate production envisaged on completion of the Jack Hills expansion project.
Murchison remains confident that the combination of the established Jack Hills resource, the current exploration program and Crosslands proven development expertise, when combined with the financial strength and resource project expertise of Mitsubishi represent an outstanding opportunity to further drive shareholder value through the expansion of the mid-west mining operations.
Recent ASX Announcements:
11 Jun 2010 - Murchison confirms high demand for offtake from Jack Hills
2 Jun 2010 - Appointment of Andrew Caruso
31 Mar 2010 - Crosslands Announces Significant Drill Intersections at New Jack Hills Target Zone |