Work starts at Paulsens East
PERTH (miningweekly.com) – ASX-listed Strike Resources has started development at the Paulsens East iron-ore mine, in Western Australia, with construction now having started on an 18-km haul road between the mine site and the public Nanutarra-Munjina road.
Construction of the haul road is expected to take 10 to 12 weeks, during which time Strike will finalise its outstanding contracts with key suppliers and preferred contractors for mining and truck haulage.
Mining at Paulsens East to create the first stockpiles of lump direct shipping ore (DSO) for shipment is expected to commence within the next four weeks, the company told shareholders.
“We are delighted to have now mobilised to site to start construction at Paulsens East. This is a very exciting time for the company as development towards first ore on ship is now underway. With iron-ore prices continuing to strengthen, the timing could not be better to bring the Pilbara’s next iron-ore mine into production,” said MD William Johnson.
Strike plans a production schedule of up to two-million tonnes a year of DSO from Paulsens East over a three-and-a-half year life-of-mine, which is underpinned by the probable ore reserve of 6.2-million tonnes.
The company will undertake a two-staged development approach, to ensure capital efficiency, with Stage 1 to be focused on surface detrital and low strip ratio materials of up to 400 000 t to be shipped through the Utah Point multi-user bulk handling facility at Port Hedland.
Stage 2 production at an annualised rate of up to two-million tonnes a year is proposed to transition from Utah Point to Port of Ashburton at Onslow, with Stage 2 ramp-up expected to be partially funded by Stage 1 cash flows.
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