https://www.miningweekly.com
Aluminium|Crushing|Design|Engineering|Iron Ore|Logistics|Mining|PROJECT|Resources|Roads|Screening|Surface|transport|Products|Environmental|Infrastructure
Aluminium|Crushing|Design|Engineering|Iron Ore|Logistics|Mining|PROJECT|Resources|Roads|Screening|Surface|transport|Products|Environmental|Infrastructure
aluminium|crushing|design|engineering|iron-ore|logistics|mining|project|resources|roads|screening|surface|transport|products|environmental|infrastructure

Paulsens East iron-ore project, Australia

27th November 2020

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

Font size: - +

Name of the Project
Paulsens East iron-ore project.

Location
The project is located in the Pilbara, Western Australia.

Project Owner/s
Strike Resources.

Project Description
A feasibility study has confirmed the strong economics of the project.

The project comprises a 3-km-long outcropping high-grade hematite ridge, containing a Joint Ore Reserves Committee- (Jorc-) compliant indicated mineral resource of 9.6-million tonnes at 61.1% iron, 6.0% silicon dioxide, 3.6% aluminium oxide, 0.08% phosphorous (at a cutoff grade of 58% iron).

As part of the completion of the study, part of the Jorc indicated mineral resource has been converted to a maiden Jorc probable ore reserve of 6.2-million tonnes at 59.9% iron, 7.43% silicon dioxide, 3.77% aluminium oxide and 0.086% phosphorous (at a cutoff grade of 55% iron).

The feasibility study proposes a 1.5-million-tonne-a-year openpit operation over an initial four-year mine life, with an estimated 75% of production as direct shipping ore lump at 62% iron, which attracts premium pricing.

The operation will use conventional mining techniques, crushing and screening, and direct transport to a bulk loading facility at Port Hedland.

Further, investigations are under way for further upside from potential for production of higher grade (63% to 64%) products, extension of the mine life and exploitation of surface detrital material.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value of A$140-million and an internal rate of return of 213%.

Capital Expenditure
Estimated preproduction capital costs are estimated A$15.7-million.

Planned Start/End Date
First ore production is scheduled for the first half of 2021, with the mining approvals process well under way.

Latest Developments
Strike Resources has completed a A$4-million capital raising to fund work at its Paulsens East project.

The company issued 40-million fully paid ordinary shares at 10c each on November 25 under its existing placement capacity to sophisticated and professional investors, with Canaccord Genuity acting as lead manager to the placement.

The funds raised will be used to advance the development of the Paulsens East project, including finalising all appropriate governmental approvals to allow for the granting of a mining permit, completing engineering designs for haulage roads and mine-related infrastructure, completing bulk metallurgical test work for final product specifications and process design, as well as finalising product offtake.

“With the feasibility study now completed, this capital raising allows Strike to continue to advance the development of Paulsens East, capitalizing on the current strong iron-ore price,” Strike MD William Johnson has said.

He has added that Paulsens East continues to offer investors “exceptional upside exposure” to the strengthening iron-ore market, with the potential to generate more than A$270-million in pretax free net cashflow, should iron-ore prices remain at their $115/t levels over the initial four-year mine life.

The feasibility study indicates that the 1.5-million-tonne-a-year project will require a capital investment of A$15.7-million and will deliver a net present value of A$140-million over its four-year mine life.

Key Contracts, Suppliers and Consultants
Engenium (study management); Harry Warries, MSc – mine engineering, FAusIMM, – Mining Focus Consultants (mining schedule and Jorc probable ore reserve); Phillip Jones – BAppSc (Geol), MAIG, MAusIMM (Jorc mineral resources consultant); Engenium and Strike (capital and operating costs); Strike (logistics); Ecologia Environmental Consultants (environmental studies); Mark Hancock  – Haven Resources (marketing); and Strike (economic modelling).

Contact Details for Project Information
Strike Resources, tel +61 8 9214 9700 or email info@strikeresources.com.au.

 

Edited by Creamer Media Reporter

Comments

Showroom

SBS Tanks
SBS Tanks

SBS® Tanks is a leading provider of innovative water security solutions with offices in Southern Africa, East and West Africa, the USA and an...

VISIT SHOWROOM 
Actom image
Actom

Your one-stop global energy-solution partner

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Resources Watch
Resources Watch
28th February 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.156 0.206s - 94pq - 2rq
Subscribe Now