Magnetite Mines Limited (ASX: MGT) has announced an update of its wholly-owned Razorback Iron Ore project, located in the Braemar iron ore province of south Australia.
This update incorporates the results of recently completed optimization studies and is underpinned by a revised ore reserve estimate that includes the separately announced maiden ore reserve for the Iron Peak deposit.
Iron Peak is the highest quality deposit within the Razorback project to date and has delivered a significant positive impact on overall project economics, particularly in the critical first ten years of operations.
Two magnetite concentrate production scenarios have been modelled – the base case with a fixed output of 5Mtpa with no expansion, and the expansion option, from 5Mtpa to 10Mtpa after five years.
Early year cash flows, capital costs and operating costs have been significantly improved by the prioritization of Iron Peak ore resulting in a breakeven cost profile that remains competitive throughout the commodity price cycle.
Optimized process plant configuration utilizing well-proven technologies, including the choice of integrated HPGR/ball mill primary grinding circuit, is supported by recent metallurgical test work necessary for green iron production over life-of-mine.
Additionally, ESG and sustainability considerations such as carbon intensity, water use, stakeholder relationships and waste management have been a core consideration throughout the studies.
Key opportunities identified include access to the south Australian electricity grid with high renewables penetration, support for downstream customer decarbonization through the supply of high-grade iron ore, the potential use of wastewater offtake for mineral processing, and partnering relationships with key stakeholders including First Nations, local communities, suppliers, and landowners.
Optimization studies are now complete, with geology and metallurgy now completed to Definitive Feasibility Study level standards, and ore reserves re-estimated to include Iron Peak. The company is now undertaking activities to enable the completion of a DFS and project partnering process.
To find out more, please visit www.magnetitemines.com.
