Ularring

Iron ore mining at the Ularring hematite project in Western Australia will include a combined crushing, gravity, de-slimming and magnetic beneficiation circuit. The iron fines will then be transported on a private haulage road for 110 kilometres to a railway siding south of Menzies, a small township located 100 kilometres east of the actual project. The product will then be transferred into railway wagons and be railed to the Port of Esperance from where it will be exported.

Ularring Hematite Project Being Developed by Macarthur Minerals Limited
The Ularring hematite project is to be developed by Macarthur Minerals Limited, an Australian public company listed on the Toronto Stock Exchange. It's main focus is the exploration and development of iron ore projects such as the Moonshine Magnetite and the Ularring Hematite projects in Western Australia.

Ularring Life of Mine to be at Least 13 Years
It is planned to begin production at the Ularring hematite project at a rate of four million tonnes of ore a year with the actual commencement date determined by access availability to the Esperance port and project financing. The Ularring project has received approval from the Western Australian government. The mine is expected to continue production for at least 13 years.

Macarthur Minerals to Advance Ularring Project as World Prices Improve
The Ularring iron ore project proponent Macarthur Minerals Limited was confronted with challenging market conditions throughout 2013, however, despite these conditions, the company continued with advancing the project throughout the year. In doing so it has de-risked items such as ongoing exploration, the obtaining of permits and access to the Esperance port. As a result Macarthur Minerals is now in the position to be able to quickly advance the project as the world iron ore market recovers.

Ularring Pre-feasibility Study Upgraded in 2013
The Ularring hematite project pre-feasibility study was released in September 2012 in which it stated initial mining would be focused on producing two million tonnes of iron ore a year from the Banjo, Central, Drabble Downs and Snark deposits located within the company's Yilgarn Region tenements. It outlined its plan to utilise a wet beneficiation process at the new mine that would be able to deliver a product containing over 60 percent iron sinter fines with low levels of sulphur, alumina, phosphorus and silica.

Revaluation of the project has resulted in increasing annual production from the initial two million tonnes of iron ore a year to four million tonnes, the securing of tenure to develop a dedicated private haulage road and a larger railway siding at Menzies.
Metallurgical testing and other work undertaken on the characteristics of the ore at the Ularring mine site during 2013 has indicated the iron ore resources that could be more amenable to gravity separation such as the haematitic ores could be mined and processed separately from the geothitic ores that beneficiate better from magnetic separation. If this was to be practiced during the first two or three years of production lower capital and operating costs could be achieved than the costs outlined in the 2012 pre- feasibility study.

An 'Expression of Interest' program undertaken in 2013 has also attracted
lower priced written costings for the provision of mining, processing and road and rail services for the Ularring hematite project. The slowdown of the mineral market during the year has benefited the company in that it has been able to secure lower costs than those proposed at the time of preparing the pre-feasibility study 12 months earlier.