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Anglo American eager for Buena Vista concentrate

8th September 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Magnum Mining & Exploration has flagged a potential offtake deal with mining major Anglo American over all of the iron-ore produced from the Buena Vista iron project, in Nevada.

Magnum has inked a memorandum of understanding (MoU) with Anglo American to progress negotiations towards a binding transaction, covering all commercial iron-ore products from Buena Vista, including direct shipping ore (DSO) and iron concentrate of both blast furnace and direct reduction iron grades.

The MoU is non-binding and any potential agreement between the two companies would be subject to a due diligence process, Magnum told shareholders on Friday.

A recent scoping study into the Buena Vista project has estimated that the project could produce 1.6-million tonne a year of concentrate over a mine life of 25 years.

The scoping study estimated capital cost of between $182-million and $378-million and an operating cost of between $44/t and $90/t, with the internal rate of return ranging between 26% and 54%, and the net present value between $360-million and $745-million.

Magnum has previously told shareholders that the company will embark on a prefeasibility study for the Buena Vista project within a year, followed by a feasibility study. The company is currently seeking funding to advance these studies and secure funding optionality for project development.

The company said on Friday that it was pursuing options to bring Buena Vista into production in the shortest and most economical way.

Edited by Creamer Media Reporter

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