Venus waits on Oakajee port to deliver iron-ore project

Mon,August29, 2011
By Esmarie Swanepoel

PERTH - ASX-listed minerals explorer Venus Metals has estimated a net present value of some A$2.14-billion for its Yalgoo iron-ore project, in Western Australia, with an internal rate of return of some 37%, based on a 7.5-million-ton-a-year production capacity.

A feasibility study on the Yalgoo project has estimated a capital development cost of around A$1.2-billion, with the project dependent on the development of the Oakajee port.

The Yalgoo iron-ore project consists of seven exploration licences totaling 208 km2 over the Yilgarn Craton Archaean banded iron formation.

The prefeasibility study, which was recently completed, was based on a production of 7.5-million tons a year of high-grade magnetite concentrate, grading more than 68% iron, specifically aimed for the export market.

The concentrate production rate was based on a mineable ore resource to give the mine a life expectancy of around 15 years. The project has a total magnetite mineral resource of 698-million tons, grading 29.3% iron.

Venus said that the mining report into the Yalgoo project had estimated a total economic magnetite concentrate production of some 129.4-million tons, based on 385-million tons of plant feed, at 30.1% iron. Based on the projected concentrate production, this equated to a mine life in excess of 17 years.

The explorer told shareholders that it was likely that the Yalgoo project could exceed this life expectancy, given that only a small part of the company’s tenement area has been explored.

Venus, in conjunction with its joint venture partner Shandong Provincial Bureau of Geology and Minerals, now planned to advance the development of the Yalgoo iron-ore project, and would undertake further drilling and mineralogy assessments, as well as continue investigations into water supply, and undertake activities to support the approvals process.

The partners would also look to develop offtake agreements for the Yalgoo products.

(sourced MiningWeekly)

Venus Metals Corporation Limited (ASX:VMC) Identified Large Additional Magnetite Iron Ore Exploration Targets At Yalgoo Iron Ore Project

Perth, Jan 20, 2011 (ABN Newswire)

Venus Metals Corporation Limited (ASX:VMC) are pleased to announce the results of evaluation of magnetic data and field mapping of the Yalgoo Iron Ore project, which has identified further large open pittable magnetite exploration targets in addition to the JORC Compliant Inferred Magnetite Iron Ore Resource of 443.9 Million Tonnes at Bilberatha Hill (refer ASX nnouncement 16th December 2010).
A number of separate target areas have been defined for drill testing within the company lease areas.
Exploration Target Potential:
- Tonnage Range: 150 - 300MT
- Fe Range: 30% - 35%
10,000m of RC Drilling is schedule to commence in February 2011 and the results of the scoping study are anticipated in early February.

About Venus Metals Corporation Limited
Venus Metals Corporation Limited (ASX:VMC) current projects consist of the Yalgoo Iron Ore Project which is located within the Murchison mid west region of Western Australia which is an emerging multi-billion dollar Chinese and Japanese iron ore investment province. The Yalgoo Project is subject to a formal farm-in agreement with HD Mining & Investment, a subsidiary of Shandong Provincial Bureau or Geology & Mineral Resources (SDGM) involving an $8m sole spend by HD Mining to earn a 50% interest in the Iron Ore Project. Once the joint venture is formed if Venus Metals elects not to contribute it will receive a 4.5% gross iron ore royalty from any production from the Yalgoo Iron Ore Project.
The company also has 3 super projects being Argyle North, Telfer North and Tropicana East projects. The focus of the super projects is for the discovery of world class deposits within concealed parts of the lower proterozoic orogenic belts which host the majority of Australia’s giant ore bodies including Argyle (diamonds), Telfer (gold), Olympic Dam (iron oxide copper gold), Broken Hill (base metals) and Mt Isa (base metals, IOCG).
source: abnnewswire