Iron ore project developer Magnetite Mines will run through some big milestones in 2021
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Special Report: An “accelerated development program” for Magnetite Mines’ (ASX:MGT) 4 billion tonne Razorback iron ore project is now underway.
Magnetite Mines — after a substantial rerating of its share price in 2020 — was able to fully fund an all-important Pre-Feasibility Study after shareholders supported a successful rights issue.
Magnetite is working on a mine development plan which is “realistic, low capital and quick to market”, chairman Peter Schubert says.
The ultimate aim is to develop an enhanced ‘blueprint’ for a world class operation — a low capital, long life, and high grade project that offers high returns to shareholders and funding partners.
The Razorback PFS should be completed during the first half of 2021, the company says. After that a final feasibility study will be launched, which will lead to financing, construction and offtake discussions.
The company is aiming to ship its first ore as early as 2024. These economic studies include a bunch of different work programs crucial to the success or failure of a project.
Key focus areas for the PFS will include geology, mining, ore sorting, processing/metallurgy, infrastructure, water, logistics and shipping, and environmental, social approvals and land access.
Pre Feasibility Study Update
• Pre Feasibility Team assembled and consultants appointed
• Preliminary selective mining results highly promising
• Accelerated development programme underway!#ironore #steel #SupplyAndDemand #mining @Mining_EnergySA $MGThttps://t.co/A2PmTnEWWB pic.twitter.com/GZEb00TR87
— MagnetiteMines (@MagnetiteMines) December 16, 2020
The company has already made excellent headway in these areas in 2020. That includes testing ore sorting technology which will improve project economics.
In October, the company signed an agreement with NextOre for the supply of mobile bulk ore sorting equipment that promises to make it simpler to sort low-grade material from the high-grade stuff.
This ore sorting trial will kick off next year. Additional key milestones include things like speaking with potential offtake partners, port, rail and power access, mine and processing plant design, metallurgical testing, and permitting.
This article was developed in collaboration with Magnetite Mines, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.