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Gindalbie Metals climbs as it becomes Australia's newest iron ore producer

Gindalbie Metals climbs as it becomes Australia's newest iron ore producer

Gindalbie Metals (ASX: GBG), Australia's newest iron ore producer, has jumped 11.1% higher intra-day to $0.15, with over 3 million shares changing hands.

Two months ago the stock traded as low as $0.094, and based on today's last trade thats a 60% gain.

Gindalbie's key asset is a 48% stake in world-class Karara Project in Western Australia, which has around a 2.5 billion tonne resource and a 30+ year mine life. It's Australia’s second magnetite project.

The joint venture partner is Ansteel, which is China’s second-largest steel maker and biggest iron ore producer.

Around a week ago Gindalbie produced the its first-ever batches of premium quality 68% iron magnetite concentrate from Karara, marking a significant milestone for the project and the Midwest iron ore industry.

At Karara the mining rate will be 30Mtpa, and is one of the state's single biggest mining operations. The project has a fully-integrated rail and port logistics chain, which includes four trains per day running between Karara and Geraldton.

Each train consists of 100 wagons and carry approximately 7000 tonnes.

At the Karara Export Terminal, Geraldton, there is the proven ability to turn around vessels in 24hrs to achieve 16Mtpa capacity.

A steady state of production is anticipated in the December quarter 2013, with Stage One capacity 8Mtpa.

 

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Newswire
June 12 2013

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