2012 Annual Report (2 April 2013) - Grange Resources

2012 ANNUAL REPORT
19
PAGE
Pumping the concentrate slurry
100 km to the port
Final magnetite concentrate will be
thickened and transported through a
110 km pipeline to the Port of Albany,
where it will be filtered and stored for
loading onto cape size ships. A second
pipeline will return the filtered water back
to the mine site so it can be used again in
the process. Both pipelines are buried.
Increasing Albany’s Port
Capacity
Subject to a decision to proceed, a
concentrate export facility would be
built on 7 hectares of reclaimed land
at Albany Port, immediately east of the
existing woodchip terminal site. The plan
incorporates a filtration plant, storage
shed, new berth and ship loading facility.
Deepening and widening a 9.5 kilometre
approach channel will enable 200,000
tonne cape size ships to use the port.
Whilst minimal dust generation is expected
because of the high moisture content
of the concentrate, the shed will be fully
enclosed, under negative pressure and
fitted with dust extraction equipment.
The development would more than
treble Albany’s current port capacity
from approximately 4 Mt per annum to
14 Mt per annum. The design has been
developed in close consultation with the
Albany Port Authority and in line with the
Public Environmental Review approved in
November 2010.
A new source of water and
power supply
The plan also envisages that a seawater
desalination plant would be constructed
25 km from the mine to supply the plant
with 11 GL per annum of water. Power
for the mine site would be provided by a
new 278 kilometre 330kv transmission line
from Muja to Southdown, to be built by
Western Power.
Operations planning
The Southdown operation will be modelled on Grange’s existing Savage River operation
in Tasmania operating on a 24/7 basis for 365 days per year.
Construction planning & schedule
Subject to a decision to proceed the project will engage an experienced construction
management company to coordinate a series of fixed price contracts to minimise
risk and the number of interfaces. The Southdown Joint Venture continues to work
alongside the community, including traditional owners of the land, to ensure a safe and
environmentally responsible project.
MINERAL RESOURCES AND ORE RESERVES
– SOUTHDOWN PROJECT
Mineral Resources Estimate
The mineral resource estimate for the Southdown Project is as follows:
As at December 2012 As at February 2012
Tonnes Grade Tonnes Grade
(Mt) %DTR* (Mt) %DTR*
Measured 423.0 37.8 423.0 37.6
Indicated 86.8 38.7 87.4 38.4
Inferred 747.1 30.9 710.6 31.5
Total 1,256.9 33.7 1,221.0 34.1
* Davis Tube Recovery – a measure of recoverable magnetite
The Mineral Resource as at December 2012 includes minor updates to the Mineral
Resource reported to the ASX on 16 February 2012. These updates included a detailed
review of oxidation levels, minor reinterpretation of wireframes around fault zones and a
complete review of historical analytical data. The net effect of these updates has been a
relative 2% increase in tonnes, 1.35% decrease in DTR and an overall 0.6% increase in
contained concentrate.
This Mineral Resource was completed by Ben Pollard of BMGS Perth Pty Ltd and has
been defined using geological boundaries and a cut-off grade of 10 wt% DTR (Davis
Tube Recovery) and includes minor internal dilution. Further details of the total Mineral
Resource methodologies and assumptions are provided in the ASX announcement dated
16 February 2012.
The information in this report which relates to the Mineral Resources of the Southdown Project is based
on information compiled by Michael Everitt who is a full-time employee of Grange Resources Limited and
a Member of the Australasian Institute of Mining and Metallurgy. Michael Everitt has sufficient experience
which is relevant to the style of mineralisation and type of deposit under consideration and to the activity
for which he is undertaking to qualify as a Competent Person as defined in the JORC Code (2004).
Michael Everitt consents to the inclusion of this information in this statement of Mineral Resources in the
form and context in which it appears.