Business
Update re Jupiter Mines
Update re Jupiter Mines.
About this update from Red Rock Resources Plc
[{"type":"text","content":"\n \n\n\n\n\n\nRNS Number : 9641C Red Rock Resources plc 15 March 2011 \n \n\nRED ROCK RESOURCES PLC\n(\"Red Rock\" or the \"Company\")\n \nAnnouncement re Jupiter Mines Limited\n15 March 2011\n \nRed Rock notes the announcement made by its 4.5% owned associate Jupiter Mines Limited (ASX:JMS) (\"JMS\") today, in which JMS announced the delivery of a scoping study on JMS' 100% owned Mt. Ida Manganese Magnetite Project (\"Mt. Ida\"). Red Rock maintains a 1.5% gross production royalty in respect of Mt. Ida. \n \nKey points of the JMS announcement, in which JMS stated that the scoping study carried out by ProMet Engineers Pty Ltd indicates a financially robust magnetite operation, include:\n \n· Scoping study based on a 20 year mine life, mining 25 mtpa to produce 10mtpa of Magnetite concentrate\n \n· Base Case capital cost is A$1,583 million, and operating costs A$62.78 per tonne of concentrate FOB\n \n· Project NPV is A$1,685 million at an 8% discount rate and IRR is 19.8% pa (based on a number of early-stage assumptions)\n \n· Major infrastructure already exists and requires little upgrading\n \nThe Scoping Study was based on the Mt Ida maiden inferred mineral resource of 530 million tonnes grading 31.9% Fe at the Central Area (which represents only 30% of the magnetite mineralization strike length). An open pit contract mining operation will extract 25mtpa ROM ore to produce 10mtpa of high grade magnetite concentrate, with an iron grade in excess of 68% Fe, a silica content of 4.5%, and very low levels of impurities (sulphur, phosphorous and alumina). An average 43.4% weight recovery was assumed, based on test work already completed. Given the grade and quality of the concentrate JMS anticipates a premium to benchmark iron ore price. Based on these attractive scoping study results a full Feasibility Study will now be launched for completion at the end of 2012 so as to identify the best strategic option to develop the project.\nJMS also has a Scoping Study underway on the Mt. Mason DSO Hematite Project (\"Mt. Mason\") due for completion in late April 2011. Mt. Mason has an Inferred Resource of 5.75 million tonnes at 59.9% Fe and offers an opportunity to generate earl...