Strike poised to ship maiden iron ore cargo from Peru
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Strike has started loading the maiden shipment of premium direct shipping lump ore from its Apurimac project in Peru unto the bulk carrier.
Loading of the 35,000t of iron ore is expected to be completed by 18 August.
Importantly for Strike Resources (ASX:SRK), offtake partner Good Importing International has paid a further US$2.5m ($3.4m) as part pre-payment for the first shipment, taking the total prepayment it has received up to US$4.5m.
The balance of the sales proceeds will be received prior to the ship arriving in China.
“The loading of the first shipment of iron ore from the Port of Pisco is a major milestone in the development of Strike’s 100% owned high grade Apurimac Iron Ore Project in Peru,” managing director William Johnson said.
“Strike continues to focus on building its local infrastructure in Peru to support an increased annualised production rate in the near term.”
Apurimac currently has a higher confidence JORC indicated resource of 142.2Mt at 57.8% iron and an inferred resource of 127.2Mt at 56.7% iron.
There is significant potential to grow this resource given that the deposits are open at depth and along strike with extensive undrilled gravity and magnetic anomalies.
Strike is targeting near-term annualised production of about 250,000 tonnes.
A review of earlier pre-feasibility studies is also being finalised. This includes gap and trade-off analyses and an identification of opportunities to reduce project capex and increase project execution security associated with a 15 million tonne per annum to 20Mtpa production profile of a 68% iron concentrate using a slurry pipeline from mine to port.
This article was developed in collaboration with Strike Resources, 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.