Strike bolsters management team to speed up iron ore development
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Special Report: With the strengthening of its management team, Strike Resources is progressing plans to fast track development of its Paulsens East project.
Strike (ASX:SRK) has signed up former Brockman Resources managing director Wayne Richards and its own alumni Shanker Madan to help bring the project into production as early as 2020.
The explorer is investigating the potential for a 1 million tonne per annum direct shipping ore (DSO) operation to bring Paulsens East into production.
DSO refers to minerals that require only simple crushing before they are exported, which keeps costs low – an option made possible by the high-grade nature of the project’s ore.
Earlier this month, the company completed metallurgical test work on samples of ore collected from various locations around the project to produce a premium high grade “lump” product, low levels of harmful minerals such as sulphur, and low degradation during transport.
Lump iron ore typically attracts a price premium compared to iron ore fines of the same grade, which is further supported by the Paulsens East lump material having an average 2 per cent higher iron ore grade than the fines material.
Paulsens East, located in the world leading Pilbara iron ore region of WA, has a current resource of 9.6 million tonnes grading 61.1 per cent iron.
About a third of this resource outcrops at surface, which means that Strike can potentially start mining with minimal overburden for the first couple of years.
“I am delighted that both Wayne and Shanker have agreed to strengthen our management team for Paulsens East,” managing director William Johnson said.
“Shanker originally bought the Paulsens East Project to Strike in 2006 and is keenly motivated to see it reach production.
“Wayne’s experience at BHP Billiton Iron Ore, as the project integration leader for mine, port and rail expansions will also provide Strike with a great insight into the planning and commercial acumen required to develop projects warranting a timely and cost-effective ‘end to end’ business solution.
“Their extensive, practical experience will help Strike expedite the development of its Paulsens East Project to take advantage of current strong iron ore prices.”
Richards was formerly the executive chairman and chief executive officer of Tawana Resources from 2013 to 2015 and served as the managing director of Brockman Resources from 2007 to 2012.
Both companies were associated with the exploration, design and development of iron ore projects in West Africa and the Pilbara.
He was also the managing director of IronClad Mining, which was developing a similar style iron ore project to Paulsens East.
Madan was Strike’s managing director between 2005 to 2010 and its chairman from 2010 to 2011.
He has over 35 years’ experience in the exploration and development of significant iron ore projects in Australia and overseas.
Madan served previously as a manager with Hammersley Iron, a group leader with BHP Minerals and a senior geological consultant with Rio Tinto (ASX:RIO).