MAGNUM MINING AND EXPLORATION LIMITED
Further to
The Buena Vista project is located approximately 160km east-north-east of
Historical studies and permitting for the long-term production of a magnetite concentrate with no deleterious impurities have already been completed and now only require updating to 2021 costs and pricing.
In the early stages of the current feasibility study update, it was recognised that the Buena Vista resource contains a number of high-grade magnetite zones that typically assay +50% Fe with minimal impurities. Historical metallurgical test work demonstrates that these high-grade magnetite zones can be easily upgraded with a dry crush. As a consequence, these zones have the potential to produce a highgrade Direct Shipping Ore ('DSO') quality product without the need to go to a fine grind which is required for the average ROM ore.
GRES will review the historical metallurgical work to understand the potential %Fe product that can be delivered via a dry crush of the high-grade zones including the Iron Horse prospect. The GRES work scope also includes the option to confirm these outcomes, if recommended, via new metallurgical test work.
GRES will also provide capex estimates for the DSO plant and equipment and opex costs for the operational phase of the project. These updates will underpin revised financial analysis. If, as expected, a simple crushing and screening circuit can be used it will result in much lower capex and significantly cut the timeline to first production from the project. Importantly, this provides the project with an earlier opportunity to take advantage of the latest bank forecasts for ongoing bullish Iron Ore prices.
Any DSO operation would pre-empt the larger (wet) magnetite concentrate operation at Buena Vista and thereafter be integrated with this potential larger, and long-life, high grade concentrate operation. The Buena Vista project, which was discovered in the late 1890's, has a history of successful DSO operations. As an example, in the late 1950's to early 1960's in the order of 900,000 tonnes of magnetite ore with an estimated grade of 58% Fe was produced and sold in the market.
It is expected that a ready market for a Buena Vista DSO product will be available, particularly as magnetite becomes more important as a low impurity and green iron ore alternative for steel mills looking to reduce their greenhouse gas emissions.
Contact:
Tel: +61 8 6280 0245
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