Lump And Fines Being Stockpiled In WA
Fenix Resources Limited (ASX: FEX) has commenced production at its Iron Ridge iron ore project in Western Australia’s Mid West.
Lump and Fines products are now being stockpiled at the Port of Geraldton in preparation for the first shipment, which is expected to take place late January / early February 2021.
Managing Director, Rob Brierley, said Fenix aims to gradually ramp up production to an annual rate of 1.25 million tonnes. The project has Ore Reserves of 7.76Mt grading 63.9 per cent Fe.
The Iron Ridge Feasibility Study found C1 cash operating costs would be A$76.86 per dry metric tonne.
The Iron Ridge Iron Ore Project is a premium DSO deposit which hosts a JORC 2012 compliant resource located around 490 km by road from Geraldton port.
High grade iron ore attracts a premium price on the seaborne market as Chinese steel works increasingly demand more pure inputs with lower emissions due to increasingly strict government regulations.
Only requiring crushing and screening, 1.25 million tonnes of ore per annum is proposed to be trucked to the port by a JV signed off in May 2019. Export capacity has been secured through binding agreements with the Mid-West Ports Authority for the use of its Geraldton Port facilities. Product sales are planned to be conducted 50% through an offtake arrangement with Sinosteel.
