The construction of infrastructure to support the development of the Cairn Hill magnetite (iron ore) mine is progressing well. The rail siding earthworks are scheduled to be completed by end January 2009 which will facilitate the construction of the rail siding in due course.
Haul road construction is well underway with final completion expected in late January 2009. The underpass under the Stuart Highway is scheduled for completion by late February/early March 2009.
There have been some delays in the construction of all infrastructure due to inclement weather in recent months. IMX is committed to completing the aforementioned elements of the project.
The Cairn Hill Mining and Rehabilitation Program (MARP) has been approved by PIRSA. The MARP gives IMX the authority to commence mining at Cairn Hill once it is in a position to do so. Although the Cairn Hill project has progressed to a point where mining is imminent, funding for the continuation of the project beyond what the company has already committed has not as yet been finalised. Sourcing of funding was well advanced late last year but, due to the global financial crisis, securing
funding has suddenly become much more difficult. Funding is still available in China and IMX has continued to engage potential investors, but it is matter of timing with the imminent Chinese New Year.
The IMX board remains confident that funding will become available in a matter of weeks or months. IMX Managing Director, Duncan McBain is currently in China engaged in discussions with a number of potential funders.
IMX has revised the Cairn Hill schedule and is now aiming to commence mining late in the second quarter of 2009 pending the receipt of funding.
Exact Mining Services are still the preferred mining contractor. Whether or not Exact Mining Services will accept the contract is dependent on the receipt and timing of funding.
“All new job opportunities related to Cairn Hill are currently on hold”, said Steve Staines, Support Services Manager for the Cairn Hill Project. “All the preliminary recruitment activities that have taken place to date were done with the expectation that funding would be received by the end of 2008, unfortunately this has not occurred. Having said that, once funding is secured we will ramp up Cairn Hill very quickly”, he said.
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