Western Plains Resources hopes that all production from a potential South Australian iron ore project to be the focus of supply agreements within months.

Today, the rising iron ore manufacturer said it had arrived at agreements with consumers to retail nine million tons of iron ore over the next five years from its Peculiar Knob project, south of Coober Pedy.

The news ignited a considerable rise in Western Plains shares that surged 5.5 cents, or 10.5%, at 58 cents.

Western Plains said that every non-binding memorandum of understanding (MOU) comprises terms to expand the life of the agreements beyond five years.

No specifications were given on the consumers, but the firm has formerly affirmed that iron ore from Peculiar Knob will be dispatched directly to Asia.

According to the recently achieved agreements, delivery of iron ore is anticipated to begin in the latter half of calendar 2011.

Western Plains has said that it plans to take the verdict to entrust to the project in the second half of this year, at which point the contracts will be transformed into binding sales agreements.

Western Plains said in a statement, ''As a result of recent enquiries, it is likely that essentially all of the project's entire production for the first five years will be the subject of similar MOU agreements with other customers, within the next few weeks or months''.