Name of the Project
Paulsens East iron-ore project.

Location
The project is located in the Pilbara, in Western Australia.

Project Owner/s
Strike Resources.

Project Description
A scoping study has confirmed excellent project economics for the Paulsens East project.

The project consists of a 3-km-long outcropping, high-grade hematite iron-ore ridge, located about 233 km south-east of the Port of Onslow, containing a Joint Ore Reserves Committee- (Jorc-) compliant indicated mineral resource of 9.6-million tonnes at 61.1% iron, 6% silicon dioxide, 3.6% aluminium oxide and 0.08% P3.

The scoping study proposes that the deposit be mined using opencut methods through drill-and-blast, excavator and truck operations.

The study estimates a production rate of 1.5-million tonnes a year of iron-ore over a four-year mine life. The bulk of the product will be high-grade 61% lump direct shipping ore, which attracts premium pricing.

The crushing and screening plant will comprise a simple jaw crusher, a cone crusher, double-deck vibratory screens, connecting conveyors and a telescopic stacking conveyor to convey the products to truck loading stockpiles.

The jaw crusher will be fed by a front-end loader from the run-of-mine pad.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The scoping study forecasts a pretax net present value, at an 8% discount rate, of between A$81-million and A$238-million (base case A$155-million), and an internal rate of return of between 263% and 649% (base case 449%). The payback period is estimated at between four months and one month (base case two months).

Capital Expenditure
Preproduction capital costs are estimated at $12-million.

Planned Start/End Date
Strike is targeting an accelerated development timetable for production to start in the third quarter of 2020.

Latest Developments
Strike has moved the project to feasibility study.

Key Contracts and Suppliers
Sanker Madan (consultant – geology, mining and processing, licensing and approvals); Wayne Richards (consultant – logistics and marketing); Phillip Jones (consultant – Jorc mineral resource); ALS Metallurgy Iron Ore Technical Centre (metallurgical testwork); and Mining Focus Consultants (mine planning).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Strike Resources, tel +61 8 9214 9700 or email info@strikeresources.com.au.