Name of the Project
Paulsens East iron-ore project.

Location
Pilbara, in Western Australia.

Project Owner/s
ASX-listed resources company Strike Resources.

Project Description
The project’s October 2020 feasibility has been updated to reflect a two-stage development, with optimised mining operations reducing capital and operational expenditure and improving project economics, based on the current market price of iron-ore of $110/t or above.

Stage 1 production will focus on surface detrital and low-strip ratio materials of up to 400 000 t, to be shipped through the Utah Point multiuser bulk handing facility at Port Hedland.

Stage 2 production, at an annualised rate of up to two-million tonnes a year, has been proposed to transition from Utah Point to the Port of Ashburton at Onslow, which will reduce the trucking distance by about 365 km.

The updated feasibility study envisages a project with an initial mine life of 3.5 years.

An opportunity exists to extend the life-of-mine, based on the surface outcropping of high-grade iron-ore along strike and historical drill intersection about 1.6 km along the current hematite ridge at the south-eastern corner of the mining lease.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
At a benchmark price of $110/t or more, the project has a net present value, at a 4% discount rate, of about $104-million and an internal rate of return of 132% over the project’s mine life.

Capital Expenditure
Stage 1 capital expenditure (capex) is estimated at $3.4-million, which could predominantly be funded by a prepayment for offtake or other financing facility.

Capex of about $3-million is required to ramp up to Stage 2 full annualised production of two-million tonnes a year, which is to be partially funded from Stage 1 cash flows.

Planned Start/End Date
Not stated.

Latest Developments
All key mining approvals and permits required to start mining have been received; permitting is in progress for Stage 2 production export out of the Port of Ashburton and associated road and related approvals.

Key Contracts, Suppliers and Consultants
None stated.

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