Shree Minerals (ASX: SHH) presented to brokers, fund managers and investors this week in Sydney at Proactive Investors "Stars in 2013" - and focused on how the company will become Australia's next iron ore producer.
The production schedule for the first two years comprises the mining of DSO iron ore, which requires no further beneficiation to produce a marketable product.
Shree is targeting iron ore production in mid-2013 from the Nelson Bay River Project which is located in the west coast of Tasmania, in an rich with infrastructure which includes being close to roads and port.
Shree has a MOU with Grange Resources for use of port Latta, and has an off-take contract MOU in-place with a large international trading house.
All approvals are in place for developing mine including; Environmental Protection Authority (EPA), Tasmania; Mineral resources Tasmania (NYSE:MRT) grant of Mining Lease; and Commonwealth Government under EPBC Act.
Shree's Nelson Bay River Project has a goethite-hematite Inferred Resource of 1.4 million tonnes, magnetite Resources of 7.8 million tonnes at 38.3 DTR, and is capable of producing highgrade concentrates to produce Blast Furnace (BF) Pellets and Dense Media Magnetite (DMM).
Importantly there is the opportunity for resource growth, considering that the current resource is only based on limited drilling at north end of Aeromagnetic Anomaly as the company focus in last two years has been the on permitting process and project development.
This exploration potential provides the opportunity for a substantial increase in scale and mine life.
How Nelson Bay River differentiates itself
The Nelson Bay River Project differentiates itself from other iron ore projects as it does not require large CAPEX in infrastructure, and importantly there is a local workforce available, which cuts costs compared to other producers who use the fly-in-fly-out model.