Magnetite Mines builds up team of experts to expedite shipping Razorback iron ore
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Magnetite has announced the engagement of key partners as it accelerates a pre-feasibility study (PFS) on its 100%-owned Razorback iron High Grade ore project.
Magnetite Mines (ASX:MGT) has put together an outstanding team of employees, specialists and experts and consultants to deliver a low capital, staged and efficient development pathway for its globally significant Razorback iron ore resource in South Australia.
The PFS is reviewing a wide range of options for mine development in order to select a single, optimised go-forward case that could lead to shipping the first ore as early as 2024. The company has previously put a July 2021 timeline for the completion of the study.
In December, the company announced it has strengthened its own team with geology, mining, metallurgy and engineering expertise while adding key external technical consultants.
The globally recognised engineer, Hatch, were retained to provide consulting and engineering services and the company is benefiting from its hands on experience and guidance
Magnetite has chosen ElectraNet as the main power supply network provider to progress a transmission connection for the proposed mine. ElectraNet will study the connection load between its high voltage transmission network to the mine location, to gain an understanding of the viable transmission options and associated costs. The connection of the mine to the main Australian National Electricity Market is a key advantage in ensuring access to low cost, reliable power for processing (something that is not available in Western Australia).
Along with ElectraNet, GHD Group has also been engaged to assist with optimising the overall power solution for the project.
Logistical studies will be strengthened by Bis Industries, a leading resources logistics company. The PFS will focus on a detailed study of costs and the transportation of the magnetite concentrates from the mine to a proposed train loading connected to the Australian Rail Track Corporation’s Broken Hill – Adelaide train line.
Magnetite chairman, Peter Schubert, is confident the team of experts will accelerate the completion of the PFS.
“Ensuring reliable delivery of stakeholder value is the priority for the company, and we are pleased to have support from these high calibre partners as we rapidly advance the Razorback high grade iron ore project into development and operation.
“The appointment of these professional teams will help accelerate critical project pathways.”
The Razorback project is located on the western portion of The Braemar iron ore region, 250km northeast of Adelaide.
Preliminary drilling has shown that the mine contains high tonnage of iron ore mineralisation. Initial studies have also confirmed the lateral continuity of high-grade iron ore horizons within the mine are potentially amenable to selective mining. It’s a method used successfully by major iron ore miners like Fortescue Metals Group (ASX:FMG), which could potentially lead to a production of higher grade ore at a lower cost.
Progress on several fronts has been made fast leading up to the PFS, including an agreement with NextOre for the supply of bulk ore sorting equipment that will make it easier to sort the high-grade ore from the lower.
The project is being financed by a $5.95 million rights issue completed in September 2020, along with royalties from the Rothsay gold mine expected to be paid to Magnetite in the second half of this year.
On completion of the PFS Magnetite Mines will be well positioned to take advantage of the next commodities super cycle, with experts singling out iron ore as the commodity to lead the pack.
The company will also be in the driver’s seat as higher grade magnetite products are becoming the product of choice for Chinese steelmakers for efficiency and environmental reasons, realising premiums over prices for lower grade hematite products.
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.