[ferro-alloys.com] The West Australian reported that shares in Flinders Mines were higher after the company gave a bullish update on its Pilbara iron ore project.

The company announced it had boosted the economics of the project through conceptual studies which showed it could deliver a direct shipping ore product at a grade of 60% at a production rate of 5 million tonne per annum for the first 8 years of mining by focusing on the D1 and D6 pits of the proposed Delta pit.

Flinders said that "Importantly, for the first five years, this ore is also able to be delivered with a strip ratio of approximately 1.1:1, providing a significant reduction in operating costs. This does not affect Flinders' ability to deliver higher annual tonnages of ore if required."

The company said that it had moved to cut expenditure by job cuts at its head office and on site and reduced exploration. It held USD 6 million in cash with monthly expenditure of USD 700,000.

The company also revealed it was in discussions with third parties over the development of the Pilbara project, which could include a joint venture or change of ownership. The company had put on hold plans to appoint a new managing director given recent discussions with third parties.