Special Report: Strike Resources has taken another step towards fast tracking the development of its Paulsens East iron ore project.

The company has now executed a letter of intent with Onslow Marine Supply Base (OMSB) and Agility Project Logistics for the export of iron ore through new facilities at Beadon Creek.

Strike Resources (ASX:SRK) said the OSMB, which has a new 200m wharf and associated facilities, is the closest established marine facility to its project, which is about 233km southeast of Onslow.

The road from Paulsens East to Onslow is a good quality sealed road save for a proposed 18km haul road that the company plans to construct from the project site to the Nanutarra road.

Under the agreement, OMSB, Agility and Strike will work together to establish the optimal operating parameters and obtain all approvals and permits necessary to enable the export of Strike’s high-grade iron ore from Beadon Creek.

With the preferred port location now confirmed, the company is in the final stages of completing a scoping study into the commercial viability of the project.

“The selection of Beadon Creek as Strike’s preferred export now enables the company to proceed with the Paulsens East project with greater confidence, with the complete logistics chain from mine to customer now identified,” managing director William Johnson said.

“As a privately-operated facility, the OMSB offers further advantages in that the operator (Agility) has strong commercial imperatives to make this operation a success.

“The establishment of such an operation is likely to generate a number of new employment opportunities at Onslow and additional economic activity for the town.”

Paulsens East in Western Australia’s Pilbara region currently has a resource of 9.6 million tonnes grading 61.1 per cent iron ore, a high grade that makes the project a candidate for a potential 1-million-tonne-per-annum direct shipping ore (DSO) operation.

DSO refers to minerals that require only simple crushing before they are exported, which keeps costs low.

Metallurgical test work completed last month also highlighted the project’s ability 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.

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This story was developed in collaboration with Strike Resources, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.