WRF to sell off old iron ore tenement:Investment manager

30 November 2005 | 00:26 Code : 6544 Geoscience events
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WRF Securities says soaring commodities prices have convinced it to sell an iron ore exploration licence ...

WRF Securities says soaring commodities prices have convinced it to sell an iron ore exploration licence that dates back to its previous life as a miner.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

In 1999 WRF, formerly known as Western Reefs Ltd, shifted its focus from rocks to the finance industry and it now has about $300 million in funds under management.

But the Perth-based company retained an application for an exploration permit for iron ore in the Mt Constance region in north Queensland which it now plans to gain and sell off.

WRF has signed a native title agreement with the local Waanyi people and forwarded its licence application to Queensland government for approval.

WRF managing director Rob Nichevich said developments since 1999 now made the tenement an attractive prospect.

"The substantial increase in iron ore prices over the past two years combined with improvements in mining and beneficiation technology have significantly changed the economic parameters and development potential of the project," he said.

Mr Nichevich said BHP had carried out exploration in the area between 1956 and 1963 before turning its attention to the Pilbara.

It identified a resource, not compliant with the current JORC standards, of 245 million tonnes with a grading of 51.3 per cent iron ore and 9.4 per cent silica.

WRF commissioned a desktop study of the project which it says shows it has the potential to develop into a significant iron ore producer.

Once the exploration licence is granted WRF plans to sell it on and it has already begun negotiations with AXG Mining Ltd, in which WRF has a 37.29 per cent stake.

tags: QAZVIN


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