Name of the Project
Razorback iron-ore project.

Location
South Australia.

Project Owner/s
Magnetite Mines.

Project Description
A new prefeasibility study has shown the potential for the production of a superpremium, high-grade (67.5% to 68.5% iron) magnetite concentrate from the project.

The study confirms the opportunity to fast-track a high-return, long-life development of the large-scale resource at Razorback using a staged approach to produce an attractive concentrate.

The PFS is based on a robust 473-million-tonne ore reserve within a much larger resource of three-billion tonnes.

The base case envisages a 12.8-million-tonne-a-year plant producing 1.9-million tonnes of superpremium concentrate. At an increased throughput of 15.5-million tonnes, production is estimated at 3.1-million tonnes a year.

The study has focused on using existing road, rail, port and utilities infrastructure in the region, and the immediate vicinity of the project, to ensure that capital expenditure requirements are kept to a minimum.

The project has an estimated 25-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
In the long-life optimised case, the project has a net present value of A$669-million and an internal rate of return of 20%.

Capital Expenditure
Capital expenditure is estimated at between A$572-million and A$675-million.

Planned Start/End Date
First shipment of premium concentrate is expected at the end of 2024.

Latest Developments
Magnetite Mines has signed a nonbinding memorandum of understanding with Whyalla Ports, part of the GFG Alliance, to investigate the use of port handling and shipping facilities to export magnetite concentrate from the Razorback iron-ore project.

Export scenarios of between five-million and ten-million tonnes a year of magnetite concentrate will be considered in the studies.

Whyalla Port is located 200 km from the Razorback site and has been the preferred portion option for the project since the 2021 prefeasibility study. It currently exports more than nine-million tonnes a year of iron-ore product.

The Whyalla Port is managed by SIMEC Mining, a business unit within the GFG Alliance responsible for the iron-ore business in the South Middleback Ranges.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Magnetite Mines, tel +61 8 8427 0516.