THE BOURSE WHISPERER: Royal Resources (ASX: ROY) has received the results of a Pre-feasibility Study conducted on the company’s Razorback premium iron ore project (RPIP) in South Australia.
The company put a number of scenarios through the calculator during the PFS, finally choosingto go with the lowest risk, OPEX and CAPEX option as its preferred configuration.
Key metrics from the PFS. Source: Company announcement
This base case will see an annual mining rate of 40 Million tonnes per annum (Mtpa) from which ultimately 8.2Mtpa of premium concentrate production is targeted.
The RPIP contains a Mineral Resource of 1.8 billion tonnes at 21 per cent iron, including an Indicated Resource of 1.2 billion tonnes at 21.5 per cent iron.
The Indicated Resource is currently being converted into a Probable Ore Reserve.
The company explained mining operations at the RPIP will consist of a conventional large scale open-cut mining operation using standard drill and blast, shovel, and truck haulage processes.
An initial pit is to be developed on the Razorback Ridge / Razorback West resource, while the Iron Peak resource will be developed as a second pit in the future.
“The quality and quantity of Royal’s mineral resources will underpin the long term success of the Razorback project,” Royal Resources chairman Phil Crabb said in the company’s announcement to the Australian Securities Exchange.
“The PFS detail provides a broad perspective on the progress of the project and the Board’s vision of bringing into existence a major new source of premium quality iron concentrate.”