Wed,Feb23, 2011 by Proactive Investors
Shree Minerals (ASX: SHH) has submitted the mining lease application for iron ore mining rights within the Nelson Bay River exploration licence EL41/2004 in North West Tasmania.
The application has been lodged after completion of studies relevant to the MLA were submitted to the Registrar of Mines, Mineral Resources Tasmania for 787 hectares on 22nd February 2011.
Shree Minerals managing director, Sanjay Loyalka said he is confident the mining application should be "favourably received" based on the work done by various consultants.
Production of Direct Shipping Iron Ore (DSO) is due to commence in the 2011-12 financial year based on key infrastructure in place in the region.
Key infrastructure such as a port and sealed roads are available within the mining area. There is also no lack of experienced mining contractors with the necessary mining equipment and resources readily available.
Scoping Study and Feasibility studies are underway with results due in the second to third quarter of 2011.
Shree is maintaining momentum necessary to achieve near term cash flows from DSO at Nelson Bay River.
Based on expected DSO material output from Nelson River of 400,000 tonnes per annum, and using a conservative Spot Iron Ore price of$137.50 CFR China for 62% Fe Fines, would produce a net cash flow of $13.5 million per annum from DSO production for Shree Minerals.
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