Havilah strikes agreement with Port Augusta Operations

The Maldorky iron ore project. Image: Havilah Resources.

Havilah Resources has signed a memorandum of understanding (MOU) with Port Augusta Operations to use the port and shipment services for iron ore exports.

Port Augusta Operations will hold a 99-year lease over the former Port Playford land and port terminal facilities near Port Augusta, which is known as South Australia’s gateway to the outback.

Existing facilities at Port Playford include an existing rail loop, unloading facility, sea wall, roads and storage sheds.

Port Augusta Operations is in the process of developing the land and terminal into a modern iron ore export terminal, including refurbishment, upgrading and other transhipment arrangements.

Havilah technical director Chris Giles said the Port Augusta Operations facility was logical for the company to make use of, given its proximity to the Braemar, Maldorky and Grants iron ore deposits.

“Port Augusta Operations’ proposed port and transhipment facility is approximately 300 kilometres by existing rail link from Havilah iron ore deposits,” Giles said.

“Our iron ore deposits in turn are located in close proximity to the transcontinental rail line, meaning reduced capital expenditure on logistics.

“We think the availability of this new port facility will potentially help to make our iron ore deposits internationally competitive.”

Havilah’s Maldorky iron ore discovery, which is within the Braemar formation, has an indicated mineral resource of about 147 million tonnes at 30.1 per cent iron.

The soft nature of Maldorky’s iron ore minerals means the ore can be readily upgraded to a high quality 65 per cent product with high yields and overall recoveries.

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