THE BOURSE WHISPERER: Eastern Iron Limited (ASX: EFE) has received the results from scoping studies recently completed at the company’s 100 per cent-owned Nowa Nowa iron project in Eastern Victoria.
The company said the studies have indicated the potential for development of a mining operation based on a previously announced resource of high grade magnetite and hematite iron.
Source: Company announcement
The scoping study determined ore would be mined at an average of around one million tonnes per annum from an open pit at the Five Mile deposit by contract mining operator.
Run Of Mine ore would then be beneficiated at site by crushing to less than 1.6mm and wet low intensity magnetic separation (LIMS) to produce average annual production of 0.8Mtpa of “fines” product grading +61 per cent iron.
Iron ore product will be loaded into standard B-double road haulage trucks at the mine site and trucked to a port on the south side of Two Fold Bay south of Eden for loading onto bulk capable vessels for export.
“We are pleased with the encouraging outcome of the initial scoping study delivered on time and within budget, and in a short time frame since we acquired the Nowa Nowa iron project,” Eastern Iron managing director Greg De Ross said in the company’s announcement to the Australian Securities Exchange.
“The economics of the project are robust and we will be moving quickly to undertake a feasibility study with initial activity due to commence shortly.
“Significant exploration upside potential remains at the project and we will be continuing activity to build on the potential JORC resource base at the Five Mile deposit and other regional targets at the project area.
“The exceptionally low capital cost is achieved as a result of the excellent infrastructure available in the project area including sealed roads, power and an export port with an operating bulk loading facility at Eden.”
Eastern iron outlined its operation program for the next 12 months to include further resource drilling at Five Mile which will be designed to investigate extensions to the resource as well as recovering core samples for further metallurgical optimisation studies and testing for ore variability.
Following the completion of the metallurgical studies the company will undertake a feasibility study including final capital and operating cost estimates.
Over the coming months Eastern iron will also be seeking to formalise arrangements with the port operators at Eden.
The company said it aims to progress the feasibility study over the next 12 months along with commencement of community consultation and the permitting and approval process.
To that end, the company will shortly engage a suitably qualified group to undertake preliminary baseline studies as well as ecological studies and development of a cultural heritage plan.