Jupiter Mines is spinning off its iron ore assets
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Manganese producer Jupiter Mines (ASX:JMS) is spinning its Central Yilgarn iron ore assets in Western Australia into a new IPO.
The proposed new company will seek to fast-track development of the Mount Mason direct shipping ore (DSO) hematite project, establish a consolidation platform to grow the existing DSO resource, and explore options to advance the Mount Ida magnetite project.
DSO refers to minerals that require only minimal processing such as crushing before they are exported, which keeps costs low.
Jupiter has appointed veteran miner Greg Durack as the chief executive officer of the as yet unnamed venture.
Jupiter’s Central Yilgarn assets are 130km northwest by road of the town of Menzies and are planned around existing infrastructure including the Leonora to Esperance railway line, and the Port of Esperance.
The small but high-grade Mount Mason project is expected to have a low start-up cost with a short payback period.
It has current measured and indicated resources of 5.9 million tonnes grading 60.1 per cent iron.
Mount Ida has a total resource of 1.846 billion tonnes grading 29.48 per cent iron that has the potential to be a long-life magnetite mine.
Development is expected to leverage on the existing infrastructure and dwindling iron ore resources in the Yilgarn.