Shares in Australasian Resources (ARH), a mineral explorer, rose by 2.04% to $1.50 after it said an expansion to the mining, processing and infrastructure areas required to develop its world class Balmoral South Iron Ore Project, located in the Pilbara region of Western Australia, has been secured.
"The expansion does not increase the company's existing rights to mine one billion tonnes of iron ore from the project, however it provides further opportunity to optimise the economics and planned layout of the development," managing director Andrew Caruso said.
Total drilling to date is 22,840 metres including 6,500 metres of diamond drilling and the probable ore reserve for the project increased by 24% to 680 million tonnes.
Australasian Resources works closely with China's 4th largest steelmaker, Shougang Corporation.
By June 2008, Shougang can elect to fund the entire project interest free in order to earn a 50% stake.
"The changes represent an excellent outcome for the company as it continues working towards the completion of key studies with entities associated with its major partner, Shougang Corporation," Caruso said.
At the end of the September quarter, the company had a cash balance of $43 million after reporting a quarterly operating cash outflow of $6.28 million.
