Aquila and partner to drill at WA iron ore project
July 2, 2008
July 2nd (The Australian Business) – AQUILA Resources and its joint venture partner have approved $84.4 million to develop an iron ore project in Western Australia.
The funds budgeted for 2008/09 will be used to complete a definitive feasibility study of the Australian Premium Iron joint venture project in the West Pilbara.
Aquila (ASX: AQA: quote) and its 50/50 joint venture partner plan to set up a direct ship iron project producing 30 million tonnes a year, the upper level of production capacity envisaged in a pre-feasibility study.
To complete the definitive study, drilling will be conducted over the project’s West Pilbara tenements, including the Mt Elvire project where no drilling has been undertaken on known channel iron formations, Aquila said.
The company added that the drilling program is expected to significantly increase the project’s resources from the 493 million tonnes flagged in March.
“In the current market for iron ore, such an increase in resource could support an increase in annual production to as much as 45 million tonnes, better utilising the infrastructure installed for the initial 30 million tonnes per annum project,” Aquila said.