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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (35967)	4/23/2009 3:02:27 PM
From: LoneClone	Read Replies (1) \| Respond to of 194002

Polaris Metals inks agreement with Mineral Resources Thursday, 23 Apr 2009 steelguru.com Polaris Metals NL and Mineral Resources Limited have entered into an agreement which grants Mineral Resources an exclusive option to acquire the rights to mine, process, transport and ship all of the iron ore deposited on Polaris’ Poondano tenements located approximately 30 kilometers southeast of Port Hedland. Highlights 1. Polaris signs option agreement with Mineral Resources to permit iron ore mining at Poondano 2. Agreement has potential to generate several million dollars annual revenue for Polaris from 2010 3. Revenue flow to underpin development of Polaris’ primary production target, Yilgarn Iron Ore Project, and exploration of Weelumurra project in the Pilbara. Under the agreement, Mineral Resources will complete a feasibility study and if successful, build, own and operate the site facilities and pay Polaris Metals for each tonne of iron ore removed from the site. The project will potentially generate several million dollars per annum revenue for Polaris. Mineral Resources has committed to spend at least USD 400,000 to complete an operational feasibility review to establish the quantum and grade of the ore reserve and detail the scope and timing of the site operations. Mr Ken Hellsten MD of Polaris Metals has welcomed the agreement with Mineral Resources, which has the potential to provide significant cash flow to Polaris Metals to underpin its core activities. Mr Hellsten said that “The arrangement monetises the value of the Poondano deposit and allows Polaris Metals to focus its management efforts on bringing the advanced Yilgarn Iron Ore Project on stream as its primary development, as well as commencing exploration of the exciting Weelumurra project in the Pilbara.” The YIOP project has a target resource potential of over 100 million tonnes of direct shipping grade iron ore mineralisation in close proximity to Kwinana and Esperance rail links, while Weelumurra holds potential for 300 million tonnes of iron ore deposits. He said that “The Mineral Resources proposal can be seen as part of our longer term development process to establish strategic alliances with partners with complementary skills that can add value and support our growth aspirations on our projects." Mr Hellsten said that “We clearly recognize the synergies that flow from a collaborative arrangement between Polaris Metals and Mineral Resources on the Poondano tenements and look forward to developing further areas of mutual co-operation.” Mr Peter Wade Executive Chairman of Mineral Resources said that Mineral Resources is well placed to bring the Poondano Project into operation in the 2009-2010 financial year with an initial target in excess of 500,000 tonnes per annum of iron ore product for export through Port Hedland. He said that “The tenements are located in close proximity to the existing operations and infrastructure of Process Minerals International and will allow for the cost effective utilization of common elements of the Company’s supply chain from mine to port to optimize production and profitability from the resource.”