Name of the Project
Parker Range iron-ore project (PRIOP).

Location
The project is located in the Yilgarn region of Australia.

Project Owner/s
Mineral Resources has struck a A$20-million deal to acquire the Parker Range iron-ore project from fellow listed Cazaly Resources.

Cazaly struck an agreement with Gold Valley in June this year to divest of the Parker Range project for A$13-million plus royalties, but on August 21 the company reported that the proposal from Mineral Resources was considered to be more favourable to the company.

Mineral Resources now has 21 days in which to conduct a due diligence; with the agreement with Gold Valley will remain in place during this time. In the event that Mineral Resources formalises the offer, Cazaly will pay a break fee of A$250 000 to Gold Valley.

In addition to the A$20-million cash payment for the Parker Range project, Mineral Resources has also agreed to a royalty of 50c for every tonne of iron-ore extracted and removed from the project, after the first ten-million tonnes.

Project Description
The PRIOP hosts a near mine-ready iron-ore deposit, the key features of which include an ultralow phosphorous hematite ore located close to major infrastructure, with key approvals to mine in place.

The project has a proven and probable ore reserve of 31.4-million tonnes targeting an iron-ore fines product grading 56.4% iron (61.9% calcined iron) and 0.02% phosphorous, 6% silicone dioxide and 2.5% aluminium oxide defined.

A definitive feasibility study (DFS) completed in 2011 envisaged a 4.2-million-tonne-a-year operation.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The 2011 DFS estimated a capital cost of A$169.5-million. A 2019 cost study has, however, lowered this to A$130-million.

The major reductions to capital expenditure are as a result of the removal of the accommodation village and the use of third-party camp facilities. Further savings have also been achieved by reconfiguring load-out facilities and supporting infrastructure, and in the construction of rail loops and mine site-based nonprocess infrastructure.

Opportunities also exist to further reduce costs by delaying the wet plant construction by about two years, which could save a further A$20-million, and securing second-hand process plant equipment.

Planned Start/End Date
Not stated.

Latest Developments
None stated.

Key Contracts and Suppliers
Avora (cost study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Cazaly Resources, tel +61 8 9322 6283 or email admin@cazalyresources.com.au.