Nevada Iron (ASX: NVI), formerly Richmond Mining, has received a vote of confidence with Ashwath Mehra, a non-executive director of Northern Iron (ASX: NFE), taking a 5.56% stake in the company, making him a substantial shareholder.
Mehra now holds over 5 million shares in Nevada Iron after acquiring the shares between March and May for a total consideration of around A$1.2 million.
In late March Richmond Mining was rebadged as Nevada Iron to better reflect its focus on the Buena Vista Iron Project in Nevada.
This was a move well supported by shareholders with 13.8 million votes for compared to 50,000 against.
Nevada Iron is on track to begin commissioning at the Buena Vista Project before the end of 2012.
The company recently completed a review of the project to assess changing the scope of the project and optimising it where possible.
This review, while not yet complete, found that increasing the Phase 1 plant throughput from 4.8 million tonnes per annum to a minimum of 6 million tonnes per annum will be beneficial for project economics.
Also, scheduling higher grade mineralisation in the initial years of the project has been deemed possible, with substantial economic benefits.
Further upside stems from the development of a Phase 2 project, which will enhance the economics and make the project more attractive to offtake financing partners.
To more fully scope the project, Nevada Iron has committed to an aggressive exploration program targeting an increase in the existing JORC Resource, as well as a conversion of the known higher grade exploration targets and prospects to JORC Resources.
Buena Vista has an Indicated Resource on the West deposit of 100.2 million tonnes at 20.3% total iron, based on true density values.
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