THE BOURSE WHISPERER: Venture Minerals (ASX: VMS) informed the market it is reviewing the economics of the company’s Riley DSO iron ore mine in Tasmania.
Venture Minerals said it carried out the review on the back of a recovery in the iron ore price and expressions of interest by several third parties in the Riley ore.
The company will undertake the review of the Riley project in conjunction with an updated scoping study on its neighbouring Mount Lindsay tin-tungsten project, which is due to be completed in the coming weeks.
Venture has had the Riley iron ore mine on care and maintenance since August 2014 having suspended clearing of the plant site.
Venture Minerals believes the current market trend demands a review of its iron ore operation with the price for 62 per cent iron, which is like what will be produced at Riley, having risen by almost forty per cent.
The company believes recent events in the global iron ore community, namely at Vales’ mines in Brazil, could sustain the current price levels at least the near term, which may suit the production ready nature of the Riley project.
Venture has already completed extensive pre-production work at Riley putting in place all the necessary requirements to commence mining, making it a ‘quick to market’ opportunity for the company.
Highlights at the Riley DSO hematite project are:
Riley is a fully permitted iron ore mine that is positioned to recommence operations within a very short period;
Approximately 90 per cent of the equipment that was previously purchased is still on hand;
Riley has Reserves of 1.8 million tonnes at 57 per cent iron with low impurities;
The Riley DSO deposit is all at surface, located less than two kilometres from a sealed road that accesses existing rail and port facilities.
“The previous work at the Riley iron ore mine has placed Venture in a strong position and with the iron ore price improving it affords the company the opportunity to commence production with relatively short notice,” Venture Minerals managing director Andrew Radonjic said in the company’s announcement to the Australian Securities Exchange.