Name and Location
Corunna Downs iron-ore project, Australia.

Client
Atlas Iron.

Project Description
The Corunna Downs (above water table) project has a maiden ore reserve of 21.1-million tonnes, at 57% iron.

The project has the potential to deliver replacement tonnes for the Abydos and Wodgina mines, which are currently expected to cease mining over the next two to three years.

It can also potentially deliver four-million tonnes a year of lump and fines direct shipping ore over an initial mine life of five to six years.

Subject to iron-ore market conditions, there are upside opportunities to extend the mine life by exploiting the below water table resources.

Mining at Corunna Downs will be undertaken by a proven mining contractor, managed by Atlas to mine the deposit using the openpit method, through a conventional drill-and-blast, truck-and-excavator combination.

The Runway pit will be mined first and is closest to the run-of-mine (RoM) pad, with a low strip ratio, Shark Gully and Split Rock will follow. Split Rock is the largest of all pits within the project area and will be the main source of ore supply for the majority of the mine life. Ore from the pits will be hauled to the RoM pad for blending to the crusher. The finished product will then be stockpiled and transported by road to the Utah stockyard at Port Hedland.

The selected process plant is a fixed dry crushing and screening plant. It will produce four-million tonnes a year and will be built, owned, operated and maintained by a contractor.

Net Present Value/Internal Rate of Return
Not stated.

Value
The prefeasibility study estimates initial capital expenditure for the project, based on the production of four-million tonnes a year, has been estimated at between $35-million and $40-million.

Duration
Not stated.

Latest Developments
The development of the Corunna Downs project is subject to necessary approvals and a recovery in the iron-ore price.
Atlas has noted that no decision has been made on whether the project will proceed to development, with such a decision to be made only after a thorough consideration of the company’s financial and operating conditions, as well as the prevailing and anticipated market conditions.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Atlas Iron tel +61 8 6228 8000, fax +61 8 6228 8999 or email atlas@atlasiron.com.au.