Name and Location
Ularring hematite project, Australia.

Client
Macarthur Minerals.

Project Description
The Ularring hematite project comprises the Snark, Drabble Downs, Central and Banjo hematite deposits located within Macarthur’s tenements in the Yilgarn region of Western Australia (WA).

A prefeasibility study has evaluated a wet beneficiation process based on indicated mineral resources of 54.46-million tonnes at 47.2% iron.

The project proposes to mine hematite mineralisation located across the Snark, Central and Banjo deposits, producing two-million tonnes a year of beneficiated high-grade ore with an estimated operating life of 13 years.

The ore is proposed to be processed on site and transported by road and rail to the Esperance port for overseas export.
Hematite ore will be mined from 25 small opencut pits – ten at Snark, nine at Central and four at Banjo – using conventional direct excavation, load-and-haul methods. Minimal drill-and-blast techniques will also be required, where direct excavation cannot be achieved on solid, cap-rock materials. Mining is proposed to start in the Snark deposit and progress to the Central and Banjo deposits.

Ore will be transported to one of two on-site run-of-mine (RoM) pads located within the mine operations centre (MOC). Ore delivered to the RoM pads will be fed into the processing plant and undergo crushing, screening and beneficiation. Final product will subsequently be stockpiled for off-site transport and blending, as required.

All waste products from the mineral excavation and processing activities will be stockpiled in designated waste dumps, located across the project area and adjacent to the pits. A total of 17 waste dumps are proposed. However, where possible, waste rock from several pits will be consolidated into a single dump.

Two MOCs are proposed, although only one will be in operation at any time, depending on the location of mining activity. All plant and equipment will be transportable and relocated between the Snark and Central MOCs when required.

As the Snark deposit is proposed to be mined first, the northern MOC area will be constructed initially, followed by the southern MOC, once mining starts at the Central and Banjo deposits. Each MOC will also comprise administration, storage, workshops, maintenance and waste management facilities and support services, including power generation, potable water and sewage treatment. A magazine facility for the storage of explosives has been designated at an appropriate distance from all operational and support services.

An accommodation camp will be located about 4 km south-east of the northern MOC to house the estimated 150-man workforce, including Macarthur staff, mine contractors and visitors. The camp will comprise sleeping quarters, messing, laundry, recreation, parking facilities and support services, including power, sewerage and potable water.

Saleable ore product will be hauled by road train along the Evanston–Menzies road and the Goldfields highway to the rail siding near Menzies and stockpiled before being loaded onto rail and transported to the Port of Esperance.

Value
Total capital costs are estimated at A$262.7-million, including rehabilitation and sustaining capital expense over the life of the mine of A$52.4-million and indirect capital costs of $49.1-million.

Duration
Not stated.

Latest Developments
The project has received environmental approval for the development of Ularring, based on the recommendation by the WA Environmental Protection Authority.

Several ongoing compliance conditions have been imposed with the approval.

Macarthur is working to optimise aspects of the Ularring project and working towards undertaking a bankable feasibility study. The company is considering equity, debt or offtake transactions with potential strategic investors to advance the project.

Meanwhile, the expansion of the Port of Esperance is continuing. The Esperance Port Authority’s request for a proposal phase was planned for completion in late 2013, after which the preferred bidder was expected to be appointed.

On completion of this process, construction of the multiuser iron-ore facility is planned to start this year and be completed in 2015.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
None stated.

Contact Details for Project Information
Macarthur Minerals, tel +61 7 3221 1796 or fax +61 7 3221 6152.