PERTH (miningweekly.com) – Dual-listed IMX Resources on Tuesday reported that operations at the Cairn Hill iron joint venture (JV), in South Australia, would be extended after the partners approved the Phase 2 extension.

The Phase 2 extension would initially comprise the mining of two new openpits to the east of the current Pit 1, with production of about one-million tonnes of product.

Initial production from Pit 3, located immediately to the east of Pit 1, would be crushed and shipped as direct shipping ore, while the balance of Phase 2 material would require crushing and dry magnetic separation to produce an intermediate product.

IMX acting MD John Nitschke said that the existing crushing circuit at Cairn Hill would be upgraded with the addition of two tertiary crushing and screening units and a low intensity magnetic separation plant would be installed at a cost of A$2.1-million, which would be partly funded by an equipment finance facility provided to the JV, while the balance would be funded from operating cash flow.

“The progression to a Phase 2 mining operation at Cairn Hill represents a logical step for the JV partners to extract maximum value from the substantial mining and logistical infrastructure already in place,” said Nitschke.

He noted that the Phase 2 extension formed part of a broader strategic vision to extend the life of Cairn Hill.

“Our immediate target is to establish a five-year life at the Cairn Hill operation, based on our existing rail and port access in South Australia. Phase 2 is the first step, with other opportunities under consideration, including a cut-back of Pit 2 to access additional remnant material.”

The new processing capacity could also be used to upgrade other higher-grade portions of the resource, which could be amenable to the process, Nitschke said, while the company would continue with exploration at the Mt Woods tenements to further identify direct shipping grade hematite that could be exploited at Cairn Hill.