Magnetite Mines Limited (ASX:MGT) has announced the results of optimisation studies carried out for its 100%-owned Razorback Iron Ore Project in the emerging Braemar iron ore province of South Australia.
Launched in September last year, the studies have identified the optimum development pathway for the project, commencing with an initial capacity of 5 million tonnes per annum of concentrate output.
Magnetite Mines also announced a 340 per cent increase in Ore Reserves for Razorback, to 1.6 billion tonnes.
The increased Ore Reserves do not yet include the impact from last month’s significantly upgraded Mineral Resource for the key Iron Peak deposit.
Highlights from the optimisation studies include:
- 5 million tonnes per year Stage 1 ‘DR-grade’ production confirmed as best-case;
- Supported by 340 per cent increase in Razorback JORC Ore Reserves to 1.6 billion tonnes;
- High-grade Iron Peak deposit now under assessment for maiden Ore Reserve to support expansion to 10 million tonnes per year;
- Clear logistics pathway to global markets;
- Competitive power and water services identified; and
- Premium grade concentrates to serve Green Steel and South Australian green iron hub.
Magnetite Mines Chief Executive Officer Tim Dobson said: “These outstanding optimisation study results highlight the exceptional value of our 100%-owned Razorback iron ore project and validate Magnetite Mines’ decision to incorporate market feedback into a larger, higher-value Stage 1 development scenario.
“The project has been optimised on all fronts, headlined by a substantial but manageable Stage 1 production scenario capable of producing of 5 million tonnes per year, with a potential staged expansion up to 10 million tonnes a year.
“We are now prioritising the assessment of Iron Peak for Ore Reserves, enabling the completion of financial modelling for the new project configuration and taking advantage of Iron Peak’s superior mass recovery and metallurgy.
“Magnetite Mines is creating an extraordinary opportunity to capitalise on the fast-growing momentum towards green steel, with the focus of regional steelmakers now increasingly on supply from Tier 1 jurisdictions with renewable energy grids and emerging green hydrogen production such as South Australia.
“We are well positioned to now enter a final study phase and deliver a DFS based on a superior project design, which will generate significant, sustainable value for all shareholders.”
