Aquila Resources has completed the pre-feasibility (PFS) study for its Hardey iron ore project, which is located near the West Pilbara iron ore project in Western Australia.
The total cost of the project is A$1.6bn ($1.7bn), including mine processing and infrastructure costs of A$570m ($606m).
The Hardey deposit consists of Brockman and Marra Mamba ores, which will be blended to form a single fine product for export.
The study has confirmed the technical and financial viability of the development based on a 10Mpta iron ore operations for a period of 14 years.
The Hardey deposit will make use of the rail and port infrastructure development proposed for stage one of the West Pilbara iron ore project.
Subject to approvals, construction of the Hardey project could be integrated with the stage one development, with first shipments expected during 2016.