Chinese investor interest in South Australia’s resources sector remains high with one of the State’s developers confirming potential China-based financiers were among its forward options for the Wilcherry Hill iron ore project on the Eyre Peninsula. Addressing the first day in Adelaide of the Paydirt 2009 South Australian Resources & Energy Investment Conference, Ironclad Mining’s General Manager, Andrew Bennett, said the company was currently considering financing options for development of its 80% owned Wilcherry Hill magnetite ore body. The remaining stake is held by Trafford Resources.

“While we are having discussions with many potential financiers, the Chinese particularly head the groups with which we are engaging,” Bennett said. “It would be our preference that in any financing agreement, however, that we link it to some product offtake option as well. We are actively looking for a development and offtake partner as Wilcherry Hill has a premium magnetite product, low development cost and is very close to export infrastructure at Port Bonython.”

Bennett said the style of the mineralisation meant the mine could use a mobile processing plant, negating the need for a ball mill and related higher energy costs. “This delivers a much lower capital cost profile for Wilcherry Hill, enhancing its appeal to our potential financiers. We are also considering eventual dry magnetic separation and that will keep production costs lower as we expand production.”

Ironclad is proposing an initial 2 Mt/y throughput from a multiple open-pit operation at the resource, with some of the mineralisation presenting as Direct Ship Ore potential – “offering early cash flow” Bennett said.