PERTH (miningweekly.com) – Metals developer IMX Resources has improved the economics at its Mt Woods property, in South Australia, following results from recent metallurgical testwork.
The miner said on Tuesday that the new testwork results indicated a significant improvement in metallurgical performance from previous testing.
“The updated testwork indicates a significant improvement in yield, a key economic driver for any magnetite project, over the yield used in our concept study,” said IMX MD Neil Meadows.
He noted that operating costs were also likely to decline, as the project would now likely have the ability to have a mill feed averaging 35% iron, following coarse cobbling.
“These metallurgical testwork results, together with the proximity to infrastructure already in use for our Cairn Hill operation, support the potential for an economic development of the project, and IMX remains committed to generating value from the Mount Woods magnetite project, for which we are actively seeking a partner,” said Meadows.
The Mount Woods project currently hosts an inferred resource of 569-million tons, at 27% iron at the Snaefell deposit, and a global exploration target of between 200-million and 380-million tons, grading between 25% and 35% iron.
In February this year, IMX called off the sale of its interest in the Mt Woods project to partner Oz Minerals, after the project partners decided not to execute binding transaction documents.
With the agreement terminated, IMX retained 100% of the iron-ore rights over the Mount Woods project, and 49% of the non iron-ore rights.