Shares in gold and iron ore explorer Cazaly Resources (ASX:CAZ) have jumped over 20% since the company announced a successful pre-feasibility study of its Parker Range iron ore project.
Cazaly said it estimated the project’s value at $216 million, with a full production potential of 4 megatons per anum. The first shipment is planned for Q3 2011.
The upfront capital costs have been estimated at $78 million, plus $26 million deferred until year three of the project.
Since making the announcement, CAZ shares have climbed 20.4% to $0.32, after rising 3.8% yesterday to $0.27.