Proto Resources (ASX:PRW) has updated the market on their Tasmanian Barnes Hill Project, which should go into production in 2014.
The company received the results from iron ore beneficiation tests which show the possibility to extract the iron ore from the Barnes Hill project and produce saleable concentrate. The company is currently in talks with potential iron ore offtakers.
Proto will continue to conduct tests on the iron ore with a particular focus on flotation to further enhance the grade and reducing the level of impurities.
Should Proto be able to close offtake agreements on the iron ore production, this would mean a huge boost to the Barnes Hill project, as the production of iron ore from the overburden could provide a decent cash flow to fund construction work on the nickel-cobalt plant.
We are expecting to see the results of the Feasibility Study on Barnes Hill any week now, which should give us a better understanding of Barnes Hill’s economics.
[download_link link=”http://www.protoresources.com.au/wp-content/uploads/2012/09/120910-Iron-Testwork-Results-and-New-Website.pdf”]You can download the press release here (pdf).[/download_link]
Disclosure: Proto Resources & Investments Ltd. is a sponsoring company. Please see our disclaimer for current positions.
