The proposed Koolanooka Magnetite project forms the second stage in the development of the Koolanooka resource, and is based on the export of concentrates / iron pellets manufactured from magnetite iron ore.
This project area is based at the historical Koolanooka mine site approximately 190 km east of Geraldton and 20km east of the Morawa townsite. The project is included in the Sinosteel / Midwest Studies joint venture.
The Koolanooka magnetite project has a significant Indicated and Inferred Mineral Resource of 430Mt at 35% Fe, and is open at depth and along strike.
While of lower grade than hematite ore, a Scoping Study completed in March 2006 concluded that the magnetite resource could be substantial enough to justify the construction of a beneficiation plant to supply blast furnace grade pellets to the export market.
Preliminary analysis shows the magnetite to be of the type favoured by mills in China and bench scale testing of magnetite pellets has been undertaken. Additional exploration and assessment is required before the size of the opportunity can be fully assessed and evaluated. Metallurgical test work to optimise recovery is underway.
Midwest intends to undertake further diamond drilling programmes in 2008 to confirm the understanding of the Mineral Resource for the project and to provide material for further metallurgical test work. |
