Managing director Steve Ward told Proactive Investors that this increase the amount of resource available for the Regolith Beneficiated DSO project.
The regolith Resource now stands 27.1Mt at 44% iron and forms a key part of the Proof of Concept for the optimised DSO Scoping Study that seeks to increase the near surface Resource inventory.
In addition, preliminary metallurgical testwork undertaken indicates that a 58-60% iron marketable product can be produced from this resource.
"This work is a key component of our Optimised Scoping Study for the Mt Forrest Iron Project. We are making very good progress with this study. The detrital iron resource will provide an important input into the study," managing director Steve Ward said.
He added the company was now updating key aspects of the study.
The new iron mineralisation represents four main detrital iron areas that host a continuous bed of iron mineralisation embedded in clay.
This is based on 258 reverse circulation drill holes, including 10 legacy holes, totalling 4,064 metres. The interpreted lenses were modelled up to 50 metres along strike from the drilling.
Drill core samples representing the detrital iron mineralisation ranging between 36% and 49% iron were chosen for the initial assessment.
Heavy Liquid Separation indicated that a 58% to 60% Fe product could be produced.
Initial mass recoveries range from 18% to 54% and the metallurgical program is ongoing to optimise the beneficiation route for the detrital material.
Mt Forrest, a major iron mineralised system within the Yilgarn Iron Province, covers seven mining leases over 50 square kilometres and includes 20 kilometres of banded iron formation strike.
It hosts an overall iron inventory of 1.7 billion tonnes at 31.8% iron.
The company had in April released a Scoping Study showing that Mt Forrest can support a 1.5 million tonne per annum beneficiated direct shipping ore (DSO) operation for a seven year mine life from regolith ore.
Key takeaways include:
- An internal rate of return of 32.8%;
- Net present value (10%) of A$86 million;
- Estimated revenue of at over $1 billion; and
- Net cash flow at $204 million.
While Mindax envisages both DSO and magnetite projects at Mt Forrest, the company is focused on bringing the DSO stage into production as soon as possible.
The new detrital iron resource has met Mindax's goal of increasing its regolith iron inventory, which will optimise its previously completed beneficiated DSO Regolith Scoping Study by increasing both the mining output and project scale.
This also improves the economics of the DSO project, which should increase its attractiveness to potential financiers.
DSO production will underpin the company's gradual move towards magnetite production.
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