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Shree Minerals

Shree Minerals receives key planning permit for Nelson Bay Iron Project

Today's receipt of a Tasmanian planning permit follows a milestone decision in July by the Tasmanian Environment Protection Authority (EPA) to issue approval conditions for the company’s proposed magnetite and hematite mine at Nelson Bay River.

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Shree Minerals (ASX: SHH) has revealed the Nelson Bay River Iron Project (NBR) has received its planning permit from the Circular Head Council of Tasmania.

In July, Shree reached a milestone with a decision by the Tasmanian Environment Protection Authority (EPA) to issue approval conditions for the company’s proposed magnetite and hematite mine at Nelson Bay River, in northwest Tasmania.

The EPA provided its conditions to Circular Head Council. The planning permit received from the Council completes the Tasmanian planning and environmental approval requirements.

The company’s chairman, Sanjay Loyalka, said that Shree now looks forward to the issue of the mining lease by the Tasmanian Government and also to the Commonwealth Government’s separate environmental approval decision.

NBR Project


The NBR Project area is located about 6 kilometres North East of the town of Temma and about 70 kilometres South West of Smithton, in North West Tasmania.

NBR project has a JORC iron resource of 11.3 million tonnes including goethitic‐hematite resource of 1.4 million tonnes and magnetite resource of 7.8 million tonnes.

During the March quarter, the DSO resource for NBR increased by 55% to 450,000 tonnes at an average grade of 57.8% iron and 700,000 million tonnes of beneficiable goethite-hematite.


Analysis

With final approvals, mining of DSO material could begin relatively quickly for Shree Minerals given low CAPEX and  generate strong cash flows and transform Shree Minerals from explorer to producer.

Mining of DSO material is likely to have a CAPEX cost only around $4-$6 million and using contractor mobile mining and crushing would only take between three to four months to set-up.

The hematite ore is similar to ore found in Western Australia's Pilbara region; low alumina and a premium product easy-to-extract, with little financial or execution risk.

Quick facts: Shree Minerals

Price: $0.01

Market: ASX
Market Cap: $4.25 m
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