Australia's largest integrated iron ore mining and pellet production company Grange Resources has announced that the mineral resources estimate at the Southdown magnetite project located in Western Australia has increased to 698 million mt, following the completion of an A$8.3 million drilling program.
A pre-feasibility study on the project was completed in early 2011 and a definitive feasibility study is expected to be completed by the end of the first quarter of 2012. Environmental permits regarding the mine and associated port development have been received.
The Southdown magnetite project is a joint venture between Grange Resources and Japan's Sojitz Corp., which stated in late December that it is negotiating to sell part of its 30 percent stake in the project.