commercial patience, as we took the time required to find the right
partner in order to realise synergies and benefits for both parties,”
said Mr Vorster.
Of IOH’s two main projects, Iron Valley, with a JORC resource
of 260 million tonnes of bedded hematite ore (containing a
JORC probable ore reserve of 134 million tonnes at an average
58.5%
Fe) is the most advanced, following approval in July 2013
of both the mining proposal for above water table mining and the
water licence required for long-term operations.
As part of the IOH responsibilities defined in an agreement
with Mineral Resources Ltd in February 2013, these approvals
were important steps towards realising revenue through the mine
gate payment structure.
“
With the Iron Valley project now advancing towards
development, the key focus for IOH has shifted towards
securing Buckland project funding solutions through a selected
project partner and finalising the Cape Preston East port lease
agreements with the Dampier Port Authority,” commented
Mr Vorster. Developing the Buckland project as an independent
mine-to-ship solution involves mining iron ore from the
Bungaroo South deposit, which has 240 million tonnes of
JORC resources in the form of a channel iron deposit close to
surface, to a proposed transhipping facility at Cape Preston East.
IOH is now carefully assessing the best path to realise the full
potential of the Buckland project. “Most of our current focus is
on finding a suitable partner to take this project forward and
despite the challenging market, we still have a number of
attractive propositions that include offshore investors, Australian
mining contractors as well as those interested in a potential
mine gate sale transaction,” he said.
“
During this coming year, IOH will continue to pursue its
goal of developing its current key deposits, carefully examine
opportunities to acquire new assets and maintain its commitment
to deliver a well balanced portfolio of cash in bank, royalty
streams, joint venture structures and where required, also
divesting assets for cash.
“
By 2016, we aim to have stable annual revenue derived
from a combination of royalties and mine gate sales, offering
a low risk, stable income to our long-term shareholders,”
Mr Vorster concluded.
Buckland project
The transaction with Maiden
Iron is a good example of
commercial patience, as
we took the time required
to find the right partner
in order to realise synergies
and benefits for both parties.
Iron Valley project
Minesite 2013
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