Ore Resources has released positive scoping study results for its Kangaroo Hills project, outlining a low-cost, fast-track development plan to export direct shipped ore (DSO) from Western Australia’s Eastern Goldfields.
The project is designed as a capital-lite, contractor-led operation involving open-pit mining, crushing, and road haulage to the Port of Esperance for international export.
By focusing on a bulk DSO strategy rather than constructing complex processing infrastructure, the company aims to shorten development timelines, minimise upfront capital expenditure, and achieve rapid cash flow generation.
The study forecasts total life-of-mine production of 1.19 million tonnes of DSO over an initial 16-month operational life, generating an estimated AU$513.4 million in revenue and AU$237.5 million in post-capital, pre-tax net cash flow.
The financial model is underpinned by an initial Indicated Mineral Resource estimate of 3.1 million tonnes grading 1.01 per cent lithium oxide.
Ore Resources CEO Nick Rathjen noted that the contractor-led model balances stripping requirements with operating costs, positioning the asset for a prompt project execution.
“This operating model generates a strong projected operating margin at modest pricing assumptions and delivers a quick payback, highlighting the potential for rapid cash generation and value creation.”
He added that an additional 1.14 million tonnes of mineralised material within the economic pit shell was excluded from the initial schedule, offering immediate scope for mine life extensions should market conditions remain favourable.
The project also contains by-product tantalum grading 118 parts per million, presenting a potential additional revenue stream that will be evaluated during upcoming technical workstreams.
Moving forward, the company is progressing environmental approvals and the grant of a Mining Licence, alongside discussions with prospective strategic and commercial partners to secure non-dilutive prepayment funding options.
Further exploration drilling is also planned across the surrounding Kangaroo Hills and Miriam pegmatite targets to drive future resource growth.
Subject to regulatory approvals and partner agreements, Ore Resources is targeting a final investment decision, project commencement, and first DSO shipments by mid-2027.
