Iron Ridge development approved

7th September 2020 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – The board of ASX-listed Fenix Resources has green-lit the development of the Iron Ridge direct shipping ore (DSO) iron-ore project, in Western Australia.

A 2019 feasibility study estimated that the project would produce some 1.25-million tons a year over a six-and-a-half-year mine life, and would require a capital investment of A$11.9-million.

The company at the end of August announced a A$15-million capital raise to fund the construction of the project, and on Monday said that following the settlement of the first tranche of the proposed capital raising, which consists of some A$10-million, the company has moved to rapidly secure camp buildings and key heavy vehicle equipment for road transport function.

Fenix told shareholders that the company is also moving rapidly to conclude contract arrangements with key service providers and port services contractors.

Under the current timelines, Fenix is hoping to start development activities at Iron Ridge in October, with first shipments targeted for early 2021.