PERTH (miningweekly.com) – A feasibility study into the Iron Ridge iron project, in Western Australia, has estimated that the project would produce some 1.25-million tons a year over a six-and-a-half year mine life.
ASX-listed Fenix Resources on Monday told shareholders that at an initial capital cost of only A$11.9-million, the project is expected to generate annual earnings before interest and tax of A$16.4-million and cash flows of A$110.4-million over the life of the project.
C1 costs have been estimated at A$76.86/t, while the feasibility study has estimated a net present value of A$54.3-million and an internal rate of return of 58.9%.
“This feasibility study demonstrates that Iron Ridge is an outstanding high-grade project which will generate strong financial returns,” said Fenix MD Rob Brierley.
“The study shows the project economics will benefit significantly from a combination of the high grade of the ore, the low capital costs and relatively low investment in infrastructure due to the proximity of an existing port and sealed roads.
“It has been less than 12 months since Fenix acquired the project and a feasibility study has already been completed. This highlights the quality and simplicity of the project.”
Brierley said Fenix was now in advanced discussions with potential offtake and funding partners, while contracts for port access, mining, road transport and port services were also being finalised.