Murchison Posts $20m Loss


Murchison Metals has recorded a A$20m loss for the half year ending December 2009.

The miner’s major expense for the period was $32.4m to finance feasibility studies and exploration costs for the Crosslands Resources and Oakajee Port and Rail project.

Murchison said lower iron ore prices and an unfavourable exchange rate impacted significantly on its half-yearly result.

The company ended the period with cash reserves of A$102.4m.

Murchison owns 50% stakes in the Japanese-backed consortium developing the Oakajee Port and Rail project, and Crossland Resources, which is developing the Jack Hills deposit.

Last year, Crosslands announced an upgraded JORC compliant mineral resource of 3.01 billion tons.

The company said it is targeting a 25-35 million tons-per-annum operation for the Jack Hills expansion project with a target date for commencement of mining in the second half of 2013.