Flinders Mines (ASX:FMS) has taken a key step forward in bringing its Pilbara iron ore project (PIOP) into production with the completion of a scoping study that identified a viable open cut mining opportunity.

The study envisages a project with indicative production of about 45 million tonnes per annum with an assumed grade of more than 60 per cent iron.

This is based largely on the current measured and indicated resources along with about 17 per cent of the ore contained in the inferred resource.

Mineral resources are categorised in order of increasing geological confidence from inferred to indicated to measured. Indicated resources have sufficient information on geology and grade continuity to support mine planning.

Flinders is forming a joint venture with BBI Group to potentially fund a feasibility study, finance the mine’s development, provide an infrastructure solution, secure offtake agreements and provide management services.

This joint venture is subject to shareholder approval.

PIOP has a global resource of 1.48 billion tonnes grading 52.5 per cent iron. It is about 60km northwest of the town of Tom Price and will require road and rail infrastructure to connect it to a proposed port at Balla Balla.


In other ASX bulk metals news today:

Jupiter Mines (ASX:JMS) has completed a concept study into the expansion of the Tshipi Borwa manganese mine in South Africa to increase production by 50 per cent to 4.5 million tonnes per annum. Subject to completion of a feasibility study and commercial process, Tshipi could achieve this higher rate of production in three years.