JOHANNESBURG (miningweekly.com) – Iron-ore miner Atlas Iron’s Corunna Downs project, in Western Australia, has the potential to deliver 4-million tons a year of lump and fines direct-shipping iron-ore (DSO) over an initial mine life of five to six years.
This is according to the results of the project’s definitive feasibility study (DFS), which was released on Wednesday.
The DFS stated that there were also upside opportunities to extend the mine life by exploiting both the below water table resources and the Glen Herring mineral resource.
Capital expenditure estimate was between A$47-million and A$53-million. The C1 cost was estimated at between A$37 per wet metric tonnes (wmt) and A$43/wmt and full cash costs were predicted at between A$49/wmt to A$55/wmt.
The DFS stated the project’s life-of-mine (LoM) breakeven price was about $50/t, with a 62% iron index price, assuming C1 cost of A$43/wmt, exclusive of development capital and foreign exchange rate of A$1 equalling $0.75.
“Value engineering and further commercial discussions are underway to reduce operating costs to the low end of these ranges,” stated Atlas.
A decision on whether or not the Corunna project will proceed to development is expected to be made by the Atlas’ board in March 2017 and will be subject to achieving a “satisfactory funding solution”.
Atlas said it would continue to progress approvals for the Corunna project during the next quarter at minimal cost, which is already included in the company’s full year 2017 guidance. Subject to Atlas making an investment decision next year, first ore on ship from the Corunna project is targeted for the quarter starting March 2018.