PERTH (miningweekly.com) – Junior iron-ore developer Venture Minerals has taken a decision to restart mining at the Riley iron-ore project, in Tasmania, following a positive prefeasibility study (PFS).
The PFS estimated that the Riley project would require a capital spend of A$3.6-million to return to production, producing around one-million tonnes of 57% iron over a two-year mine life.
The project is expected to generate total revenues of A$172.82-million, and would have a net present value of A$27.24-million and a post tax internal rate of return of 303%.
“This is an exciting phase for the company as it moves from explorer to producer. The Riley iron-ore mining study demonstrated the delivery of an exceptional internal rate of return in excess of 300% is possible by leveraging the relatively small capital requirement to commence production,” said Venture MD Andrew Radonjic.
The project is expected to create between 80 and 100 jobs, and first iron-ore shipments have been targeted for next quarter.